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Alliance Pharma eyes pick up in momentum in second half of 2020

Snapshot

  • Owns a portfolio of prescription and OTC brands
  • Integrating Nizoral acquisition from Johnson & Johnson 
  • Strong cash generation
Alliance

Quick facts: Alliance Pharma PLC

Price: 74.9 GBX

AIM:APH
Market: AIM
Market Cap: £397.78 m
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What Alliance Pharma does:

Alliance Pharma PLC (LON:APH) is an AIM traded company that focuses on the acquisition and licensing of pharmaceutical and healthcare products.

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 said it expects full-year 2020 revenue and underlying profit before tax to be in line with market expectations despite the coronavirus (COVID-19) pandemic.

The fall-out from COVID-19 affected revenue in the first half of 2020, mainly in its prescription medicines business but sales of its consumer healthcare products remained robust.

Revenue for the first half of £65.3mln was down 7% on the £70.3mln while net debt reduced by £7mln to £52.2mln with a further drop expected in the second half of the year.

The group said it has experienced “only minimal disruption” to its supply chain due to COVID-19 and continues to expect a further recovery in trading during the second half of the year, as markets normalise and demand improves.

What the boss says, Peter Butterfield chief executive

"We expected some reduction in demand during the first half of 2020 as a result of COVID-19. That said, we have come through strongly towards the end of the half and expect trading to recover further as we move into the second half of the year.

“The resilience and diversity of our product portfolio, and the ease with which we have managed to transition the business to operating remotely, position us very well to resume our growth trajectory as the markets for our products recover,” 

Inflexion points:

  • Second half recovery expected as markets in China and elsewhere open up fully again 
  • Nizoral, a Johnson & Johnson medicated shampoo, was acquired last year 
  • Further acquisitions as markets settle down after COVID-19 disruption

 

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Full interview: Alliance Pharma delivers 'solid' first-half performance with...

Alliance Pharma PLC's (LON:APH) Peter Butterfield discusses with Proactive London's Andrew Scott the firm's interim results and says they delivered a solid first-half performance. Revenues for the period were £70.3mln, up 28% on a constant currency basis, or an organic 10% if the...

on 4/10/19

2 min read