27th Sep 2006 07:00
Sinclair Pharma PLC27 September 2006 Sinclair Pharma Plc announces acquisition of UK sales and marketing company, Ashbourne Pharmaceuticals Godalming UK, 27 September 2006: Sinclair Pharma plc ("Sinclair"), theinternational specialty pharmaceutical company, announces today that it hasacquired the UK-based sales and marketing company Ashbourne Pharmaceuticals Ltd("Ashbourne") for £1.25m. The terms encompass an initial payment of £1.05 million, with repayments ofintra group debt bringing the total to £1.25 million. Sinclair is funding thetransaction with its own cash resources. Ashbourne's turnover last year1 was £3.2m, loss before tax was £0.3m and thecompany generated operating cash inflow of £0.2m. The company currently has cashof approximately £0.6m and its Net Asset Value is approximately £1.1m2. Throughintegration into the Sinclair group, Ashbourne is expected to be able to reduceits costs. Sinclair intends to build the existing business as well as developing thecompany to support Sinclair's expansion into the UK. This will support theSinclair goal of achieving critical mass in sales and marketing in the keyEuropean territories. Ashbourne currently targets the dispensing doctor market in the UK, whichaccounts for 18% of the UK GP market by cash, and is regarded as a leadingcompany in this sector. The company co-promotes third party pharmaceuticals andits own range of branded generics. Ashbourne's existing infrastructure alsoincludes regulatory, distribution, marketing and sales and its product range andtarget markets will be expanded as a member of the Sinclair group of companies.The commercial management of Ashbourne will stay in place, reflecting theircommitment to the business. In recent years, Sinclair has been building sales and marketing operations inkey European markets. The acquisition of Ashbourne consolidates this strategy,adding the UK to its sales operations in France, Italy, Spain and Portugal. TheSinclair product portfolio is also commercialised through its marketing partnernetwork in 60 countries, including the US and Germany. Commenting on the role of this acquisition in Sinclair's development strategy,Dr Michael Flynn, CEO of Sinclair Pharma, said: "The acquisition of Ashbournebrings us another step closer to building a direct commercial presence in allthe major EU territories, and importantly it gives us access to direct salesoperations in our home market. We will be building on the existing commercialpresence of Ashbourne in the dispensing doctor sector. We also intend to developthe company and harness the expertise of the employees to support Sinclair'sdevelopment strategy." Leslie Galloway, CEO of Ashbourne Pharmaceuticals, said: "We are excited about becoming part of Sinclair's expanding global operations.Sinclair will benefit from our skill and reputation in the UK market, and inturn, we are looking forward to playing an important part in enhancing thegrowth of this dynamic international pharmaceutical company." - ends - 1. Last financial year ended November 20052. At 31 August 2006 Notes to Editors Sinclair Pharma plc is an international specialty pharmaceutical company. Ithas a growing sales and marketing operation that is already present in France,Spain, Italy and Portgual, and a complementary marketing partner network thatspans 60 countries. Sinclair focuses in niche/specialty therapeutic areas andits current portfolio focuses on products for dermatological conditions and oralhealth. Sinclair's goal is to become a sustainably profitable internationalpharmaceutical company, focusing on niche therapeutic areas, with a directcommercial presence in the key commercial markets. Sinclair Pharma plc is quoted on the Alternative Investment Market (AIM) on theLondon Stock Exchange. www.sinclairpharma.com For further information please contact: Sinclair Pharma plc UKDr Michael Flynn, CEO Financial DynamicsJerry Randall ACA CFO Ben AtwellZoe McDougall, Corporate Communications John GilbertJohn Barrington-Carver, Corporate Communications Tel +44 (0) 207 831 3113Tel: +44 (0) 1483 410 600 GermanyMC ServicesRaimund GabrielHilda JuhaszTel +49 89 210 228 0 "Safe Harbor" Statement under the US Private Securities Litigation Reform Act of1995: Some or all of the statements in this document that relate to futureplans, expectations, events, performances and the like are forward-lookingstatements, as defined in the US Private Securities Litigation Reform Act of1995. Actual results of events could differ materially from those described inthe forward- looking statements due to a variety of factors. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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