25 July 2018 - Deborah Wilkes
Alliance Pharma's sales in the first half of 2018 increased by around 10%, as the Kelo-Cote brand recorded growth of 77%.
Announcing preliminary results, Alliance Pharma said its sales in the first half of 2018 were expected to be GBP54.5 million (USD71.7 million), representing a rise of 10% as reported and 12% at constant currencies.
Excluding the impact of acquisitions, sales would have been up by 4%.
The UK-based specialty pharmaceutical company said its international star brands – Kelo-Cote, MacuShield and Vamousse – had "continued to deliver a strong performance" in the first half of 2018.
Sales of the scar-reduction product Kelo-Cote increased by 77% to GBP10.9 million, while the MacuShield food supplement for eyecare recorded sales up by 22% to GBP3.7 million.
The head-lice treatment Vamousse, which was acquired on 28 December 2017, achieved sales of GBP2.7 million. The performance had been "in line with expectations", said Alliance Pharma, adding the brand was "well-placed to grow in the second half, which includes the important back-to-school period in the US and the UK".
Commenting on the rest of its portfolio, Alliance Pharma said the local hero brands had performed "in line with expectations", but the bedrock had been "slightly behind expectations due to a combination of manufacturing delays and distributor order phasing".
Alliance Pharma said trading profit for the first half of 2018 was expected to "increase at a rate lower than sales due largely to the phasing of spend to support marketing and selling activities".
Recent acquisition of Nizoral rights
The company noted net debt had increased by approximately GBP14.0 million to GBP86.3 million as of 30 June 2018 following the acquisition of Nizoral on 21 June 2018.
Alliance Pharma has acquired the marketing rights to Johnson & Johnson's Nizoral anti-dandruff shampoo in the Asia-Pacific region for GBP60.0 million.
The deal covers rights to Nizoral – which contains the active ingredient ketoconazole – in more than 15 countries including China, Japan, South Korea and Thailand.
The purchase price represents 3.2-times Nizoral's sales of GBP18.5 million in the Asia-Pacific region in 2017.
Johnson & Johnson has divested Nizoral to three buyers in four regions. US-based Kramer Laboratories has acquired Nizoral in North America and Latin America for an undisclosed sum (click here to read News story), while Germany's Stada Arzneimittel has acquired the brand in the Europe, Middle East and Africa (EMEA) region (click here to read News story).
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