Alliance Pharma shareholder Nigel Wray buys 750,000 more shares

Alliance Pharma (AIM: APH) said Nigel Wray has bought a further 750,000 shares in the company this week, taking his holding to 25,269,995 shares, or 11.08% of the capital. He is still the group's second largest shareholder behind chief executive John Dawson.

Alliance Pharma in February completed the acquisition of Cambridge Laboratories. The deal, which added 18 new prescription products to Alliance’s portfolio, is expected to be significantly earnings enhancing in the current financial year. Cambridge’s commercial manager Peter Butterfield has also been appointed to the Alliance Pharma board.

In late March, Alliance published its results from a landmark year in which the pharmaceutical company increased sales by 44% to £31.2m compared with 21.8m in the previous financial year. In the twelve months ended 31 December 2009, the company achieved a three-fold increase in pretax profit before exceptionals to £8.6m as well as in adjusted earnings per share (EPS) to 3.55p.

According to Alliance, its record sales performance reflected the company’s transition to the new business model, set out in 2007, with the benefits clearly evidenced in the results.

"2009 was a landmark year for Alliance, with major increases in turnover, profitability and cash generation, and the commencement of dividend payments”, Alliance chairman Michael Gatenby commented. “We look forward to more strong results in 2010, particularly following the Cambridge Laboratories acquisition."

Alliance said in its results statement that the development side of the business is now in abeyance, with no investment of any substance made last year, stating there are no further plans to do so. Through its concentration on the trading side of its business, the company said it has reached a critical mass of human, product and financial resources which enable it to invest confidently in adding more established products to its portfolio.

In the remainder of the year the company is well placed to maintain strong growth, particularly driven by the Cambridge Laboratories acquisition, the full year effect of the Buccastem and Timodine acquisition, and organic growth from the dermatology portfolio, Alliance said. Whilst the company noted its caution in terms of competition in Deltacortril’s market, Alliance is confident that it is set for another strong performance this year.

http://www.proactiveinvestors.co.uk/companies/news/16344/alliance-pharma-shareholder-nigel-wray-buys-750000-more-shares-16344.html