Alliance Pharma: trading “in line” with market expectations

Source: Healthcare Exec

Date :10/01/2008 10:28:50

Specialty pharmaceutical company Alliance Pharma plc says sales in line with market expectations with sales ‘strengthening considerably’ in the second half.

Alliance Pharma said that strong trading in the year to 31 December 2007 reflected ‘in part’ the progress made in resolving the supply chain issues that impacted the first half.

Turnover in the second half of 2007 was £10.4 million, up £2.6 million on the first half.

Turnover for the full year to 31 December 2007 was £18.2 million, an increase of six percent on the previous year.

Posidorm impairment

Meanwhile, in a statement the company said that it continues to search for a partner to take forward the development of Posidorm, the Company's melatonin product for sleep disorders.

“Discussions continue with a number of potential partners,” the company said.

Yet in the absence of confirmed funding to progress the development Alliance said it is preparing to recognise an impairment to Posidorm's carrying value, which will result in an exceptional non-cash charge of approximately £3.4 million.

Before the Posidorm impairment, Alliance Pharma expects to report a modest profit for the year in line with expectations and demonstrating a significant turnaround from the £0.9 million loss reported for the first half of 2007.

Alliance's preliminary results for the year to 31 December 2007 will be announced on 14 March 2008.

January 10, 2008