What Alliance Pharma does:
Over the past 20 years, the group has made over 35 acquisitions, which include healthcare and pharma businesses and rights to products.
Alliance has a clutch of so-called “star” brands, which are managed and marketed centrally and sold internationally.
These include: Lice treatment Vamousse; Kelo-cote, a scar reduction product; MacuShield, a supplement recommended by eye experts and anti-fungal shampoo Nizoral.
The company runs its business across three broad regions: Europe, where the company sells a combination of prescription and OTC products; the newer US business, where it is focusing on the promotion of Vamousse; and the fast-growing Asia Pacific business, which has a tilt towards dermatology.
How it’s doing:
Alliance held its interim dividend and said it is seeing signs of better trading after disruption from the coronavirus (COVID-19) pandemic affected its first half.
Revenues in the six months to end June 2020, dropped 7% to £61.7mln with prescription medicines particularly affected as routine treatments were delayed by COVID-19.
The company’s flagship consumer healthcare brands were helped by a strong performance from scar prevention treatment Kelo-cote, where revenues were up 8%.
Underlying profits (EBITDA) fell by 4% to £18.1mln, though a series of impairments and write-down meant pre-tax profits dropped to £0.6mln from £15.2mln in 2019.
Going forward, Alliance said it has regrouped in its products into consumer healthcare brands and prescription medicines to make understanding of the types of product simpler.
The interim dividend wa unchanged at 0.536p.
What the boss says, Peter Butterfield chief executive
“We are now starting to see further signs of recovery and expect trading to continue to recover as we move through the remainder of the year,” said Peter Butterfield, chief executive of the healthcare products group in its interim results statement.
- Second half recovery expected as markets in China and elsewhere open up fully again
- Nizoral, a Johnson & Johnson medicated shampoo, integrated
- Further acquisitions as markets settle down after COVID-19 disruption