REG - Alliance Pharma PLC - Update on CMA investigation

Alliance PharmaAnnouncement

03/02/2022 07:10

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220203:nRSC5351Aa&default-theme=true

RNS Number : 5351A  Alliance Pharma PLC  03 February 2022

 For immediate release      3 February 2022

 

 

 

ALLIANCE PHARMA PLC

("Alliance" or the "Group")

 

Update on CMA investigation

 

 

Alliance Pharma plc (AIM: APH), the international healthcare group, today
provides an update on the Competition and Markets Authority ("CMA")
investigation first announced on 23 May 2019 in which four companies,
including Alliance, have been subject to a lengthy investigation. Following
the investigation, the CMA has announced its finding that all four companies,
including Alliance, have infringed competition law.

Alliance fundamentally disagrees with the CMA's finding and confirms that it
did not participate in, or profit from, any market sharing arrangement and
refutes any involvement in the alleged competition law infringement. Alliance
will be appealing the CMA's decision, and the proposed fine of £7.9m, at the
Competition Appeal Tribunal.

Alliance takes compliance with competition law very seriously and has fully
assisted the CMA in its investigation. Alliance has robust procedures in place
and a Group-wide commitment to upholding the highest standards of conduct.

Further announcements will be made as appropriate.

Background

On 23 May 2019 Alliance announced that the CMA had issued a Statement of
Objections to four companies, including Alliance, alleging anti-competitive
agreements in relation to the sale of prescription prochlorperazine, a small,
out-licensed product in Alliance's pharmaceutical portfolio. The CMA alleges
that the infringement period began over 8 years ago - from June 2013 and
lasted until July 2018.

Alliance out-licensed prochlorperazine to a distributor in 2013 in return for
an agreed fixed transfer price. Since that time Alliance has had no
involvement or control over, and did not benefit from, the in-market pricing
of the product, which is entirely managed by the distributor. Alliance
recorded peak revenues of prochlorperazine in 2015 of £1.9m and revenues in
2021 were £0.7m representing circa 0.4% of the Group's turnover for 2021. The
CMA's decision does not concern any other product in Alliance's portfolio.

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR.

 

For further information:

 

 Alliance Pharma plc                                        + 44 (0)1249 705168
 Cora McCallum
 Head of Investor Relations & Corporate Communications
 www.alliancepharma.co.uk
 Buchanan                                                   + 44 (0)20 7466 5000
 Mark Court / Sophie Wills / Hannah Ratcliff

 Numis Securities Limited                                   + 44 (0)20 7260 1000
 Nominated Adviser: Freddie Barnfield / Duncan Monteith
 Corporate Broking: James Black

 

 Investec Bank plc                + 44 (0) 20 7597 5970
 Corporate Finance: Daniel Adams
 Corporate Broking: Patrick Robb

 

About Alliance

Alliance Pharma plc (AIM: APH) is an international healthcare group. Our
purpose is to improve the lives of consumers and patients through making
available a range of clinically valuable healthcare products.

Our core focus is on the marketing of Consumer Healthcare brands, complemented
by a smaller Prescription Medicines business. In total, we hold marketing
rights to around 80 brands, with revenues generated from a mix of direct,
distributor and e-commerce sales.

Headquartered in the UK, the Group employs around 250 people based in
locations across Europe, North America, and the Asia Pacific region. By
outsourcing our manufacturing and logistics operations, we remain asset-light
and focused on maximising the value of our brands.

For more information on Alliance, please visit our website:
www.alliancepharmaceuticals.com (http://www.alliancepharmaceuticals.com)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCDBGDDSDGDGDD