Alliance Pharma to buy Sinclair IS Pharma assets

UK specialty drugmaker Alliance Pharma (LSE: APH) has entered into a conditional agreement with Sinclair IS Pharma (LSE: SPH) to acquire certain assets and businesses principally focused on dermatology.

News of the deal pushed Alliance’s shares 8.8% lower to 45.50 pence, while Sinclair’s stock rose 7.1% to 38.29 pence.

Alliance will acquire the “Healthcare Products Business” for a consideration of £127.5 million ($192 million), plus an estimated £4.7 million for inventory, to be satisfied partly in cash, funded by way of the new loans, and partly by the issue and allotment of the vendor consideration shares under the terms of the acquisition agreement.