MEDICAL DOLUTIONS NHS CONTRACT JAN ?

Date: 02 Jan 2001 07:00:37
Service: Regulatory News Service
RNS Number:5050W
Medical Solutions PLC
2 January 2001

MEDICAL SOLUTIONS PLC


#3.8 million Acquisition of Quinoderm Limited


Medical Solutions, the specialist healthcare company dedicated to solving
identified medical problems, announces the acquisition of Quinoderm Limited
("Quinoderm"), a private company specialising in the manufacture and marketing
of dermatology pharmaceutical products.


This acquisition is a further step in the Adams Healthcare Limited ("Adam's")
strategy of building a therapeutic and dermatology pharmaceutical portfolio
that will bring benefit to patients in both the hospital and community
sectors. Adam's was acquired by Medical Solutions in May 2000.


Quinoderm has an established and respected pedigree in providing high quality
dermatology products with established brands, known by Dermatologists, Primary
Care Practitioners, Pharmacists and patients. The consideration for the
acquisition will be satisfied by the payment of #3.74 million, with #950,000
payable in cash, #2.79 million in loan notes.


For the year ended 31 March 2000, Quinoderm had turnover of #1,464,705 and
profit on ordinary activities before taxation of #156,748. As at 31 March
2000, Quinoderm had net assets of #522,155.


The acquisition provides an excellent strategic entry for Adams Healthcare
into the branded dermatology market and has excellent synergy with Adams'
existing dermatological product range. This will enable Adams to build a
promotional and clinical platform for future growth in this important growing
sector through organic growth, product development and acquisition.


Charles Green Business Development Director, commented:


"Dermatology is a sector with growth potential and one where Adams Healthcare
can build a sustainable competitive advantage. The Quinoderm acquisition is
earnings enhancing, has potential for significant growth, is an excellent
strategic fit and will help accelerate Adams' growth plans in this area.


"Medical Solutions will continue to expand by both organic growth and
strategic acquisition. Further acquisitions are under review and we hope
shortly to announce a major expansion of our cancer services that will have a
significant impact on the diagnosis and treatment of cancer."





The last paragraph seems to tie in with the NHS rumour.