Sinclair IS buys derma company

UK specialty drugmaker Sinclair IS Pharma plc (AIM: SPH.L) has entered into an agreement to acquire USA-based Advanced Bio-Technologies (ABT), a dermatological products company focused on scar treatment and prevention from HealthEdge Investment Partners, and certain other shareholders for a total consideration of £21.0 million ($32.8 million).

The acquisition gives Sinclair IS ownership of ABT’s flagship scar prevention and treatment product Kelo-cote, a patented silicone gel range, in all the remaining markets not already licensed by Sinclair IS outside the US, with the most important markets being Brazil, Korea and China. Sinclair IS previously licensed the rights to Kelo-cote in its core European markets, the UK, France, Germany, Italy and Spain.

The acquisition has been structured to exclude ABT’s existing US business and infrastructure and its subsidiaries (SOS Brands and ABT-Belli Materna). ABT’s international division generated revenues of $6.1 million in its last full financial year to December 31, 2010, representing growth of 19% over the prior year, and delivered EBITDA of $3.9 million. Based on the results in the first 10 months of the current financial year to 30 October 2011, ABT’s international revenues are expected to grow by around 40% by the end of 2011, including revenues from Sinclair IS in Europe.