Alliance Pharma To Buy Rights To J&J's Nizoral In APAC For £60 Mln; Stock Up

(RTTNews) - Shares of Alliance Pharma plc (APH.L) were gaining around 3 percent in London trading after the specialty pharmaceutical company announced Tuesday its agreement to buy exclusive marketing rights to Nizoral, a medical, anti-dandruff shampoo brand, in Asia-Pacific.

Alliance Pharma will buy the Nizoral Rights from Janssen Pharmaceutica NV, affiliated to Johnson & Johnson (JNJ), for a total consideration of 60 million pounds.

The acquisition, which will boost Alliance's successful and rapidly growing APAC distributor business, is expected to generate material earnings enhancement in the first full year of ownership.

The Nizoral Rights include more than 15 countries including Japan, Thailand, South Korea, China and Pacific markets. In 2017, the Nizoral Rights achieved net sales of 18.5 million pounds in APAC.

The company said the deal will be funded by an underwritten equity placing of new ordinary shares in the capital of the Company to raise gross proceeds of 34.0 million pounds.

In London, Alliance Pharma shares were trading at 101.46 pence, up 2.5 percent.