Alliance Pharma nabs Novartis' Syntometrine for $11.5 million
Total sales of Syntometrine in the 12 months to March 2013 in a grouping of countries that includes Australia, South Africa, Malaysia and New Zealand were $3.2 million, and the gross margin generated was $2.8 million
WILTSHIRE, U.K.—Speciality pharmaceutical company Alliance Pharma plc announced June 7 that its wholly owned subsidiary AlliancePharmaceuticals Ltd. has acquired all existing rights toSyntometrine , a drug for which it already owned rights in the United Kingdom, from Novartis AG for $11.5 million.
Syntometrine is an obstetric drug used in the final stage of labor, and Novartisand its affiliates have been selling the drug in a number of countries worldwide, including Australia,South Africa, Malaysia and New Zealand. In the 12 months to March 2013the total sales of Syntometrine by the Novartis Group were $3.2million, and the gross margin generated was $2.8 million.
"We are delighted to acquire these significant overseas rights toSyntometrine, a product we already know well through selling it in theUK for many years," said John Dawson, CEO of Alliance Pharma. "Although there will be some costs of operating thenew distributorships, the acquisition will be immediately earningsenhancing and it fits well with our strategy of increasing Alliance'sinternational sales."
Allianceexpects to have annual distribution and operating costs of approximately£500,000 associated with these new territories.
The $11.5million consideration is being funded from existing cash and bankfacilities.