Alliance and Sinclair in pharma deal
22 Dec 2015
Alliance Pharma has acquired Sinclair IS Pharma for roughly £132 million.
The deal, classed as a reverse takeover – a merger in which a private company becomes publicly traded so as to avoid excessive fees - will extend Alliance’s footprint outside the UK, the company said.
The acquisition is comprised of £127.5 million for Sinclair’s portfolio of products and other assets, and around £4.7 million in inventory.
£100 million of debt facilities have been provided in support of the transaction, with funding from The Royal Bank of Scotland (RBS), Silicon Valley Bank (SVB), and Lloyds Bank Commercial Banking.
Chief executive of Alliance John Dawson said the deal was a significant development for the company.
“Lloyds Bank Commercial Banking, RBS and SVB have been instrumental in helping us secure the funding required to achieve this transformative deal,” he said
The transaction will pave the way for future international growth of Alliance by providing a greater ability to compete for international deals and in-licensing opportunities, said Dawson.
Alliance will acquire 27 products as part of the deal. These include: Kelo-Cote, Kelo-stretch, Aloclair, Atopiclair, and Flammacerium.
Flammacerium is used to treat burns, and in 2014 was granted ‘orphan drug’ status.
An orphan drug is a pharmaceutical agent that has been developed specifically to treat a rare condition, and Flammacerium is used to treat patients with severe dermal burns.
