Alliance Pharma to acquire anaesthetic gel from Smith and Nephew
Speciality pharmaceutical group Alliance Pharma has acquired the rights to Ametop from global medical technology business Smith & Nephew for a total consideration of $7.5m.
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Ametop, a topical anaesthetic gel product used for numbing the skin prior to intravenous injection or cannulation, had been sold by S&N in the UK, Ireland, New Zealand and Canada for more than a decade.
Alliance expects the addition to be earnings enhancing, with total sales of Ametop of $2.8m generated in the twelve months to 31 October, of which roughly 75% came from the UK and Ireland.
The consideration will be funded by Alliance's existing cash and bank facilities, including a drawdown of the group's £35m revolving credit facility.
Alliance will also acquire the drug inventory, expected to have a value somewhere in the region of $400,000.
John Dawson, Alliance's chief executive, said, "We are delighted to acquire Ametop, an attractive and established brand. The acquisition will be immediately earnings enhancing, accretive to our underlying return on invested capital, and it fits well in our existing bedrock business operations."
As of 0845 GMT, shares had fallen back just 0.051% to 58.97p.