Shares in speciality pharmaceuticals group Alliance Pharma (LON:APH) edged 4% higher to 33.5p this morning on news that the company had been trading ahead of expectations during the first four months of this year. The price improvement follows a year-long steady increase in the value of Alliance shares, which were trading at just 14p last May. Reporting on the its performance since the start of 2010, chairman Michael Gatenby said the company was significantly ahead of last year and was continuing to benefit from the positive sales trends reported in its annual results in March.

Last year’s figures saw sales rise by 44% to £31.2m and pre-tax profits triple to £8.6m, triggering the start of dividend payments. Turnover in the four months to April 30 reached £15.0m, up 88% on the same period in 2009. This period includes £2.7m of sales from products acquired from Cambridge Laboratories in February 2010 and from Reckitt Benckiser in August 2009. The acquisition from Cambridge Laboratories was Alliance’s largest acquisition yet, and brought with it 18 additional products and more than £10m a year of additional sales. Earlier, the company acquired two important products from Reckitt Benckiser, Buccastem and Timodine, which complemented its existing portfolio.

Mr Gatenby said: “Sales of Deltacortril® / enteric coated prednisolone tablets continue to be strong. We remain cautious that the prednisolone market may become more competitive over time, though this has not happened to date. The Cambridge Laboratories acquisition has been successfully integrated into Alliance ahead of schedule. Sales by Alliance of the Cambridge Laboratories products in the first 10 weeks post-acquisition have been in line with our expectations. We look forward to the remainder of 2010 with confidence.”

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