Alliance Pharma Share Discussion Threads

[pimpernel4] 26/11/2015 08:19

Fair enough and good luck to you ramridge.

There seems to have been plenty of appetite at 44p this morning at just a 10% premium to the placement price. The compelling thing about APH is its relatively small free float of shares. As we saw earlier in the year it does not take much to get it motoring and the majority of the new shares must surely now sit in hands that are in it for the mid to long term.

Let's see what the end of year share price is.

[ramridge] 26/11/2015 08:10

On first reading, it looks too expensive. EBITDA multiple of 14.7, and PE of 26. Paid too much.
This together with the deeply discounted placing means I am staying away.
Synergies have to be a lot more than £5m to make this attractive.
All IMO and DOYR

[pimpernel4] 26/11/2015 08:04

Indeed Norbert, let this sink in and settle and the next 12 months will clearly be transformational. On the plus side of it not being offered to retail, this way the shares should sit in safe, tight hands.

[norbert colon] 26/11/2015 08:01

A few negatives such as it not being offered to retail investors, it's extremely dilutive and at a discount but those points aside its clearly transformational and earnings accretive and I agree that clearly this is a game changer for the Group w.r.t scale and opportunities.I have a lot of faith in John Dawson and the board to do the right thing and look forward to remaining a long term shareholder.

[pimpernel4] 26/11/2015 07:49

John Dawson, Chief Executive of Alliance, commented:

"This Acquisition represents a very significant development for Alliance. On completion, Alliance will be a significantly larger business with synergies in existing markets. Having over half of our business outside of the UK, we will have a greater ability to compete for international deals and in-licensing opportunities."

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Transaction highlights:

-- Alliance to acquire 27 products including five key growth brands (Kelo-Cote(TM) , Flammacerium(TM) , Aloclair(TM) , Kelo-stretch(TM) and Atopiclair(TM) ). The acquisition of these complementary assets will materially increase the scale of the business.

-- The Acquisition will significantly increase the Company's footprint outside of the UK and will provide an enhanced platform for further corporate development.

-- In the 12 months ended 30 June 2015, the Healthcare Products Business generated revenues of GBP43.3 million and EBITDA before exceptional items of GBP9.0 million. It is estimated that cost-saving synergies of approximately GBP5.0 million will be achievable from the 12 months ending 31 December 2016.

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An outstanding deal, by the look of it.

Clearly a lot of work over the past months behind the scenes to make this happen.

Well done to the Board and Management.

[123prezzie] 05/11/2015 17:48

The excellent cash flow from operations means that I am not at all concerned by their borrowings. In 2005 the figure was £24m (including the convertible loan stock, since repaid) against profits of £661k for 10 months. If they didn't buy any more products, the current borrowings would be repaid in 2/3 years. They also have unused facilities of about £20m.
Of more concern to me is that there is the occasional problem with a supplier - like Sanofi/Immucyst - which dents both profits and my confidence in management. Nevertheless, I shall continue to hold with the possibility of selling some if the price moves usefully higher.

[norbert colon] 05/11/2015 14:40

Buster - correct. Thats a 25% (ish) reduction in their debt which is not to be sniffed at. Its just more good news IMO.

[busterdog2] 05/11/2015 13:23

The proceeds of the settlement agreement will be used to reduce Alliance's net bank debt. Which was a fairly hefty £26.5m two months ago.

[2vdm] 05/11/2015 12:39

Agreed. I have been a LTH here. Alliance has the cash it needs to expand and is profitable. It appears to have a very competent BOD. Good point mazarin makes about it may take some time for Immucyst to re-establish itself. Does anyone here have any views on the PE of 17, going forward?

[mazarin] 05/11/2015 12:15

I have been waiting for this settlement for a very long time and note that when APH first announced its loss of production of Immucyst a few years ago the immediate effect on the share price was negatively significant. Clearly its position in the marketplace was taken over by competitors and it could well take time for APH to recover in that area. Fortunately APH's Board have introduced several other products in meantime and therein lies their strength.

I think the real value of this compensation lies in what APH finally decides to do with the proceeds and I suspect they'll probably continue to do what they always have done to date, i.e. look for further 'value enhancing' and proven products to add to their divirgent portfolio of products.

[123prezzie] 05/11/2015 11:13

Today's RNS supports pimpernels post above although the market's response is very muted. The receipt of £6.7m cash seems significant in relation to profits and market cap, whilst also adding to their acquisition firepower. Another plus is that "constrained supplies" of Immucyst will be back on the market at the end of the year.

[pimpernel4] 21/10/2015 11:29

Good luck Rivaldo. All the best with future investments. The thing with Alliance is that you never know which new deals are round the corner - they certainly seem to have the support to expand, when they see an opportunity.

[rivaldo] 19/10/2015 15:40

I've sold and taken profits. It's been a great run, but APH is now on quite a decent rating and I'm unsure how much if any upside there is.

On the downside, APH have invested "significant pre-marketing costs" in the launch of Diclectin from next year. However, I've come across this rather controversial news from Canada, where Diclectin is charged with being no more and possibly less efficacious than other products - there's lots of other coverage on the web:



Good luck all.

[domple] 08/10/2015 15:09

there must be a big seller as there have been tens and tens of £thousands bought recently and the share price hasn't moved much.

[domple] 29/9/2015 10:13

£20,000 buy!!

[domple] 29/9/2015 10:12

Another decent purchase...mms playing games??

[domple] 29/9/2015 09:44

I spoke too soon about the rises!!

[pimpernel4] 29/9/2015 09:34

I am

Busy day though

[domple] 29/9/2015 08:56

btw, is anyone else on this thread??lol

would appreciate others' views!! Is this a good share??

[domple] 29/9/2015 08:48

Early rise..... up 0.5p on 5,000 purchase

Should hopefully see some good movement if this continues....

[domple] 28/9/2015 16:35

strong finish to the day

[domple] 28/9/2015 13:51

perhaps break the £1 level....is something abrewing???

[domple] 28/9/2015 13:49

a little tick up here and there....looking good for new highs....

[domple] 25/9/2015 13:48

I've re-read that Hardman report and it's all very upbeat....