Forceval China Rights

Alliance Pharma PLC 22 March 2007 For immediate release 22 March 2007 ALLIANCE PHARMA PLC ('Alliance Pharma' or 'the Company') Acquires rights to market Forceval in China Alliance Pharma plc (AIM: APH), the emerging speciality pharmaceutical company, is pleased to announce that, in a joint venture with a local distributor, it has acquired the rights to market the multivitamin Forceval in China, where the product is endorsed by public health authorities as a nutritional supplement for pregnant women to promote the birth of healthy babies. The acquisition of the China rights, which is expected to be earnings enhancing in the current year, completes Alliance's global distribution rights to market Forceval; in November 2004 it acquired rights to the product for all territories outside China. Forceval was initially launched in China in 1999 and is sold in family planning clinics and pharmacies. In 2006, the recorded sales of Forceval from the UK to China were £1.9 million. Alliance has acquired Forceval rights in China through a joint venture, Bellona Group Ltd, which is 60 per cent owned by Alliance and 40 per cent owned by Pacific Glory Development Ltd, a Chinese company that currently distributes Forceval in China and will continue to do so. The rights were acquired by Bellona for a consideration of £3.25 million, of which Alliance is contributing £1.95 million from a debt facility provided by the Bank of Scotland. Bellona acquired the rights from the administrator to Unigreg Ltd, which previously held the worldwide rights to Forceval. John Dawson, Alliance Pharma's Chief Executive, said: 'I am delighted to have been able to secure this growth opportunity in a joint venture that brings considerable local knowledge of the Chinese market. This transaction gives us a low-risk bridgehead into China and completes our global distribution rights to Forceval.' For further information: Alliance Pharma plc + 44 (0) 1249 466966 John Dawson, Chief Executive Maddy Scott, Finance Director www.alliancepharma.co.uk Buchanan Communications + 44 (0) 20 7466 5000 Mark Court / Rebecca Skye Dietrich Notes to editors About Alliance Pharma Alliance Pharma, founded in 1996, is an AIM listed emerging speciality pharmaceutical company based in Chippenham, Wiltshire, UK. The company has a strong track record of acquiring the rights to established niche brands and owns, or shares, the rights to 34 branded pharmaceutical products and continues to explore opportunities to expand the range. Alliance Pharma's products are prescribed in the treatment of a wide range of conditions and include brands used in periodontitis (a serious gum disease), the prevention of heart disease, in Parkinson's disease, in nutrition, in nasal infections, in the treatment of dermatological conditions and in childbirth. Alliance Pharma's sales are mainly prescription driven. Its products are distributed to hospitals directly and to pharmaceutical wholesalers which service both hospital and retail pharmacies with their prescription requirements. Alliance Pharma is also developing novel products for sleep disorders and the induction of labour. Alliance Pharma joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH. This information is provided by RNS The company news service from the London Stock Exchange
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