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with the combination of developments such as the product and have begun to rol out the Posidorm and the ongoing capability to build second year as a publicly quoted company, product in regions outside the uK. Periostat, up the business base, Al iance has created have in many respects been a period during as the first and only approved prescription a low risk growth strategy with considerable which the foundations of the company were medicine for the chronic, adjunctive treatment strengthened to support the growth of the of periodontitis, has significant growth potential company in the current year and beyond. The for the company. Indeed when one considers company has developed both in breadth and that more than 3 mil ion adults in the uK in depth, particularly in terms of improvements suffer from periodontitis, we take enormous Sales progress has been very pleasing indeed. in infrastructure. This momentum has been encouragement from the initial response to For the 10 month period to December 2005 maintained post the period end, notably with the our promotional campaigns and look forward sales were £12.28 mil ion, compared to £11.83 acquisition of the hydromol range of prescribed eagerly to reaping the rewards of our decision mil ion for the 12 months to February 2005. dermatology products in February 2006.
to acquire the brand and invest in it. In brief Periostat shows our ability to find the right On an annualised basis, sales for the 10 It was also a period that provided further acquisition, to agree commercial y favourable evidence of the robustness of Al iance’s terms, to create the appropriate infrastructure and then to promote the product effectively to months to February 2005. had it not been for the 7% price decrease imposed from January 2005 in the uK under the Pharmaceutical Price These skil s are highlighted by our first year Forceval, a prescribed nutritional supplement, was Regulation Scheme 2005 (PPRS), sales for the achievements with Periostat and Forceval, both acquired for £7.0 mil ion from the Administrators of which were acquired in November 2004. of unigreg ltd for al ter itories apart from china. grown by 33.7% and exceeded £15 mil ion. It consistent customer care has led to the turnaround is very reassuring to know that our past strategic Periostat is a treatment for the severe gum of the brand such that sales were 39.9% higher disease periodontitis, which was acquired decrease and stil report an extremely credible for regions outside North America for $3.3 growth rate. unwelcome and unjustified though mil ion. Fol owing the launch of our promotional This formula is reproducible. we are continual y this PPRS price decrease was, it does mean that activities in August 2005, Periostat sales seeking and evaluating new opportunities but we can plan in confidence that our uK prices responded such that in the fourth quarter of completing deals only when they make sense commercial y and financial y. Our track record month compared to £24,000 for the first half speaks for itself: including hydromol, we have of the year, an increase of 37.5%, indicating a successful y completed nine acquisitions in successful promotional launch in the uK.
Annual Report and Accounts 2005 Alliance Pharma plc opportunities. Al iance intends to exploit Sales of Symmetrel, our specialist product for looking forward we take justified confidence Parkinson’s disease, continued their upward from a strong and growing portfolio of quality trend growing by 18.7% to £1.56 mil ion for growth opportunities on the one hand and Similarly sales of Nu-Seals, our enteric coated low dose aspirin, achieved sales of £3.36 mil ion with 6.8% growth in the Republic of Our two products in Phase I I clinical trials Ireland, where the brand was promoted for – Posidorm for sleep disorders and Isprelor for induction of labour – each made substantial progress during the period under review.
Our dermatology portfolio recorded sales of £1.75 mil ion for the 12 months to December containing a synthesised version of the natural y same period in 2004 of 1.0%. however for occurring hormone melatonin, which regulates competitive reasons our dermatology portfolio the sleep/wake cycle and whose deficiency bore an over-weighted share of the PPRS price is the main cause of many sleep disorders. decrease; at constant prices the real growth It presents a major commercial opportunity for Al iance as around 20 mil ion people achieved by the careful execution of a minimal throughout Europe suffer from melatonin related As mentioned earlier we are pleased with In July 2005 we began Phase I I trials in two Periostat’s growth since August 2005. In the groups of patients in whom previous research in the medical literature has shown melatonin sales of £311,000, which was considerably to be of benefit. These are; a) elderly patients higher than that achieved by the previous reporting problems with sleeping, where no obvious cause exists; and b) shiftworkers who need to sleep during the day, when their Equal y pleasing was the turnaround achieved melatonin levels would be natural y low. current progress suggests the launch of the product in acquired from the Administrators of unigreg ltd in November 2004. The £2.42 mil ion achieved for the 12 months to December 2005 Our Phase I I clinical trials on Isprelor, our intra- compares favourably with £1.73 mil ion for the vaginal misoprostol for induction of labour, 12 months to December 2004, representing began at the beginning of the period under review but site set-up and patient recruitment was initial y slower than at first anticipated. Our core Brands, which we do not promote, To compensate for this, the number of sites Annual Report and Accounts 2005 Alliance Pharma plc Interest in the product from the medical Our Finance Function has been reorganised and strengthened with specific positions covering Al iance sponsored symposium on the use of significantly during the course of the past year financial accounting, management accounting misoprostol in obstetrics at the 6th International and corporate administration, the lat er role Scientific Meeting of the Royal col ege of areas including sales and marketing, regulatory, also including investor relations. This new Obstetricians and Gynaecologists in cairo in clinical development, acquisitions management structure now facilitates our Finance Director’s involvement on strategic financial mat ers. Owing to the size of the opportunity with First and foremost was the creation of our we have created the position of Director Dental Products division in April 2005 to drive of Acquisitions Integration, underlining our discussions for continental Europe with a number forward our exploitation of the transformational intention to maintain the pace of acquisitions of potential partners and look forward to opportunity afforded by the acquisition of at the company. This is an innovative role that providing further details of progress during the Periostat in November 2004. This resulted in our is dedicated to organising the planning and commencement of promotional campaigns to integration of acquisitions, so that they are dentists from August 2005 and the subsequent embedded into the company’s operations with minimal disturbance to ongoing activities. Our profit before tax of £0.66 mil ion for the This move is already showing its worth with the Another important expansion of our sales and ongoing integration of the hydromol range favourably with £0.41 mil ion for the 12 month marketing capabilities was the creation of our financial period to February 2005. This is a International Division in May 2005, principal y particularly good result when one considers that to develop and manage the overseas business the development expenditure charged in the for Forceval and Periostat, but also to exploit I am therefore pleased that Al iance enters the P&l is £0.62 mil ion greater than that charged other international opportunities within the rest current year with a team that has the capability, in the previous financial year. Additional y the of the portfolio. One of the first successes was capacity and enthusiasm to deal with the 7% compulsory PPRS price decrease in the uK the appointment in July 2005 of a distributor for opportunities and chal enges ahead.
Periostat in Turkey, an important dental market. mil ion of profit from the 10 month financial period ending December 2005. Thus it can In September we appointed a new Director Post the period end, we acquired the hydromol be readily seen that the underlying operational of Regulatory Af airs to ensure the quality of range of prescription dermatological products strength of our trading business improved our regulatory submissions primarily for our for eczema and other skin conditions for a markedly in real terms during the past financial development projects, Posidorm and Isprelor, cash consideration of £3.25 mil ion. The but also for line extensions and other filings. we acquisition was significant not least because it have also appointed a clinical Projects Manager delivers critical mass to the company’s existing a) our past strategic measures judiciously to to add further managerial strength behind our dermatology franchise. The addition of key sales executives has strengthened Al iance’s b) our finely tuned decisions selectively to invest have recruited an expert in Pharmacovigilance to manage the increasing demands af ecting the Annual Report and Accounts 2005 Alliance Pharma plc The hydromol range includes ointments, creams Our strengthened infrastructure means that we and bath oils and sales are growing strongly are wel placed to exploit our significant growth at over 30.0% pa. It is our intention to increase opportunities and to accommodate further sales further by expanding the products’ range acquisitions should we find products that fit with line extensions and by extending the into our clearly defined acquisition criteria.
geographic distribution via the company’s network of international distributors.
dermatology portfolio that includes brands The company enters the current year with a stronger business base than at any other time in its history and I am pleased to report that current trading is on plan. Among our priorities in the current year wil be to drive the growth of Periostat and to integrate the hydromol acquisition. The current year is likely to be one in which dermatology wil have a much higher whilst it is impossible to forecast the outcome of clinical trials and regulatory submissions we believe that the two compounds – one being based on an already marketed molecule and the other being a copy of a natural y occurring hormone – represent a balance of risk and Annual Report and Accounts 2005 Alliance Pharma plc

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