Chippenham’s Alliance Pharma reveals strong growth and further acquisition ambitions

Alliance Pharma

Alliance Pharma plc, the Chippenham-based international healthcare group which holds the rights to around 80 consumer healthcare brands, such as Lypsyl Lip Balm and Quinoderm, and prescription medicines, is currently in discussions with a third party regarding a potential acquisition of two products in the US. If any acquisition did occur the total consideration for both products in aggregate would be no more than $20m.

The group has also revealed strong overall revenue growth driven by consumer healthcare, underpinned by continued market penetration via e-commerce activity which now represents around 25 per cent of Group revenues.

The company reported statutory revenues of £163.2 million, and gross profit of £109.5 million, up 26 per cent and 32 per cent respectively.

Consumer Healthcare see-through revenue up 31 per cent to £121.8m (2020: £93.0m)

Robust Prescription Medicine performance with revenues up eight per cent to £47.8m with strong H2 recovery as the effects of COVID-19 receded.

Peter Butterfield, Chief Executive Officer of Alliance, said: “I’m delighted with the strong operational and financial performance of the Group in 2021. Our Consumer Healthcare business continued to perform well, with Kelo-cote enjoying another excellent year as we capitalised on the opportunities identified for the brand. Group double-digit organic revenue growth was complemented by the acquisition of Amberen which, coupled with solid cost control, resulted in strong cash generation allowing us to reduce both net debt and leverage.

“2022 has got off to an encouraging start. We remain confident in our ability to further capitalise on identified organic growth opportunities within the business and to deliver financial performance in line with market expectations. In addition, we continue to evaluate opportunities to selectively add complementary acquisitions to our Consumer Healthcare platform, taking advantage of our strong cash flow and reduced leverage.”

The Group, which is based at Avonbridge House on Bath Road in the town, employs around 250 people across Europe, North America, and the Asia Pacific region.