Alliance Pharma PLC Settlement Agreement with Sinclair Pharma plc (0143A)
March 21 2017 - 03:01AM
UK Regulatory
TIDMAPH TIDMSPH
RNS Number : 0143A
Alliance Pharma PLC
21 March 2017
For immediate release 21 March 2017
ALLIANCE PHARMA PLC
("Alliance" or the "Company")
Settlement Agreement with Sinclair Pharma plc
Alliance Pharma plc (AIM: APH), the specialty pharmaceutical
company, announces today it has reached agreement with Sinclair
Pharma plc ("Sinclair", AIM: SPH) for compensation in connection
with the material reduction of business in Kelo-stretch(TM), as
noted on 7 April 2016 in the Company's Preliminary Results for the
year ended 31 December 2015.
Kelo-stretch, a dermocosmetic cream for the prevention and
treatment of stretch marks, was acquired from Sinclair in December
2015 as part of the Company's acquisition of Sinclair's Healthcare
Products Business.
The terms of the agreement are:
-- GBP4 million in cash to be paid to the Company by Sinclair on or before 30 April 2017;
-- GBP1 million in cash to be paid to the Company by Sinclair on or before 30 June 2018; and
-- Sinclair relinquishes any and all rights to Flammacerium(TM)
(US) with immediate effect and transfers them to the Company.
The cash element of the compensation will be used by the Company
to reduce its current bank loans.
Alliance continues to progress its project to register
Flammacerium in the United States and plans to seek registration
guidance from the US regulatory authority in the second half of
2017. As part of the acquisition of the healthcare products from
Sinclair, Sinclair had retained some royalty rights on the
potential US commercialisation. These rights are now being
transferred to the Company. In Europe, Flammacerium is indicated as
a topical treatment for severe burn and wound management.
John Dawson, Alliance Pharma's Chief Executive, said: "We are
very pleased to reach this agreement with Sinclair to address the
previously announced sales shortfall of Kelo-stretch. We believe
the cash compensation of GBP5 million is fair and that the US
rights to Flammacerium provide us with an additional potential
opportunity which we are currently exploring. Overall, the
acquisition of Sinclair's Healthcare Products Business in December
2015 has been transformational for Alliance, bringing some key
growth products into the Company's portfolio and increasing our
scale and international reach."
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
For further information:
Alliance Pharma plc + 44 (0) 1249 466966
John Dawson, Chief Executive
Andrew Franklin, Chief Financial
Officer
+ 44 (0) 20 7466
Buchanan 5000
Mark Court / Sophie Cowles
/ Jane Glover
+ 44 (0) 20 7260
Numis Securities Limited 1000
Nominated Adviser: Michael
Meade / Freddie Barnfield
Corporate Broking: James
Black / Toby Adcock
Notes to editors:
About Alliance Pharma
Alliance, founded in 1998, is an international speciality
pharmaceutical company based in Chippenham, Wiltshire, UK. The
Company has sales in more than 100 countries worldwide via direct
sales, joint ventures and a network of distributors. Alliance has a
strong track record of acquiring the rights to established niche
products and it currently owns or licenses the rights to
approximately 90 pharmaceutical and consumer healthcare products.
The Company continues to explore opportunities to expand its
product portfolio.
Alliance joined the AIM market of the London Stock Exchange in
December 2003 and trades under the symbol APH.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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