proven business model - alliance...

20865.04 21/09/11 Proof 4

AlliAnce PhArmA plcHalf Yearly Report 2011

Stock code: APH

Proven business model

Proven record of growth

20865.04 21/09/11 Proof 4

Half Yearly Report 2011Alliance Pharma plcwww.alliancepharma.co.uk

01 Chairman’s and Chief Executive’s Statement 04 Consolidated Income Statement05 Consolidated Statement of

Comprehensive Income06 Consolidated Balance Sheet07 Consolidated Statement of Cash Flows08 Consolidated Statement of Changes in Equity

09 Notes to the Half Yearly Report14 Independent Review Report to

Alliance Pharma plciBc Advisors

Alliance Pharma plc is an AIM listed speciality pharmaceutical company.

Alliance sells a range of over 50 acquired and licensed prescription products across a range of therapeutic categories. The Group commenced trading in 1998 and has since grown to an annual turnover of over £45m.

Alliance is based in the UK at Chippenham, Wiltshire.

❯❯ Strong underlying sales growth of 29% (excluding Deltacortril™)

❯❯ Acquisition of six products from Beacon Pharmaceuticals for £2.4m in September 2011

❯❯ Acquisition of Anbesol™ and Ashton & Parsons™ in April 2011 for £2.6m

❯❯ Net bank debt/EBITDA ratio is just 0.9 times

£24.4m

09 10

13.2

23.4 24.4

11

Sales

+4%

0.25p

09 10

0.07

0.17

0.25

11

Interim Dividend

+47%

£7.0m

09 10

2.9

6.0

7.0

11

Profit before Tax

+17%

2.38p

09 10

1.28

1.97

2.38

11

Basic earnings per share

+21%

Highlights.

Chairman’s and Chief Executive’s Statement

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Alliance’s results for the first half of 2011 have inevitably been impacted by the slowdown in Deltacortril / enteric-coated prednisolone sales. But more importantly, they also confirm that the Deltacortril profits that we have enjoyed during the past two years have been put to good use. We have invested in expanding our brand portfolio while also reducing debt. As a result, the business is now stronger than ever. Our dermatology and oncology portfolios are both growing well. Indeed, excluding Deltacortril, over the past five years the whole business has grown at an annual average of 21%, of which 6% is organic and around 15% is from acquisitions.

As we have consistently communicated, the substantial income that Alliance received from surging sales of Deltacortril over the past couple of years was not sustainable owing to the expected arrival of a second generic competitor. The competitor arrived in late 2010, which signalled a return to more moderate sales levels.

Our first-half sales for 2011 show a further increase on the same period last year, albeit a modest one. As already indicated by market forecasts, we do not expect to match 2010’s exceptional financial performance this year but we are well placed to drive further growth through our continuing acquisition programme and through the organic growth of our promoted portfolio.

Financial performanceFirst-half sales grew in line with our expectations, up 4% year on year to £24.4m. Given that sales of Deltacortril were down by some £3.7m, this was a good performance (underlying sales growth excluding Deltacortril was 29%) that indicates the strength of the underlying business.

Despite the increase in sales, adjusted operating profit reduced by 13% to £7.8m. This was due largely to additional costs following the Cambridge Laboratories acquisition in February 2010 and a gross margin rate reduced by the changing product mix. With a declining share of higher-margin Deltacortril sales in the mix, the rate fell from 60.9% for 2010 to 56.8% in the first half of 2011.

Chairman’s and Chief Executive’s Statementwith Michael Gatenby and John Dawson


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Selling, general and administration (SG&A) costs increased ahead of inflation — up from £4.9m in H1 2010 to £5.5m. Key factors were a full half-year of SG&A costs from Cambridge Laboratories, and a further modest uplift in promotional investment for Hydromol™, our primary dermatology product. This was rewarded by further strong sales growth for Hydromol.

The reported pre-tax profit increased by £1.0m. After stripping out the £1.7m exceptional items of H1 2010, underlying pre-tax profit, however, decreased by £0.7m to £7.0m. This resulted from a combination of lower gross margin and increased costs.

Our finance costs continue to fall significantly: down from £1.3m in H1 2010 to £0.8m this half year. This reduction was due primarily to the refinancing agreed with our bank in November last year and the consequent reduction in interest charges. Healthy cash flow has enabled us to continue paying down bank debt, although this was offset during the period by the cost of funding product acquisitions (£2.6m) and a £1.0m deferred payment for last year’s Cambridge Laboratories acquisition. As a result, net bank debt increased slightly from £17.0m to £17.7m. The net bank debt / EBITDA ratio remains very strong at just 0.9 times.

Investors have continued to show their confidence in the business by converting the convertible loan stock into equity. A further £0.4m of the outstanding stock was converted during the period, bringing the total outstanding down to £4.5m. This has further reduced our finance costs, as the stock pays a fixed coupon of 8%.

DividendOur confidence in the business has been reinforced by its resilient performance even as the Deltacortril boost period comes to an end. We are therefore declaring an interim dividend of 0.25p per share — an increase of 47% on last year’s interim dividend. This remains well covered by post-tax profits and reflects our progressive dividend policy.

StrategyWe continue to implement the strategy we adopted in 2007. We acquire or license established prescription products in niche areas where there

is little or no competition. These products fit into two complementary portfolios. The majority, spread across a variety of therapeutic areas and currently accounting for about three-quarters of our sales, requires minimal promotional support and generates stable, predictable cash flows. A smaller ‘promoted’ portfolio in dermatology and oncology offers opportunities to grow sales through selective investment in promotion.

Cambridge Laboratories brought us a range of oncology products for the promoted portfolio and 15 others for the non-promoted portfolio. We completed its integration into the business last year, including rationalisation of staff and premises, and it is performing very much as we had expected.

In April we acquired two products from Reckitt Benckiser for £2.6m: Anbesol is used to treat mouth ulcers, teething pains and denture irritation, and Ashton & Parsons is used to relieve pain and stomach upset caused by teething in infants. Both products have maintained stable sales in the past few years with minimal promotion though, as we reported at the time of the acquisition, there are manufacturing issues with Ashton & Parsons which are likely to take around a year to resolve. We believe the two products have interesting growth potential and expect the deal to enhance earnings this year. Initial demand levels have been promising.

Alongside these results we are also announcing the acquisition of six products from Beacon Pharmaceuticals Limited for £2.4m in cash. The main product in this portfolio is Rizuderm™ (isotretinoin), which is used in the treatment of severe acne and fits well in Alliance’s dermatology business. This deal is also expected to make an immediate positive contribution.

We now have over 50 products and an appetite for more. After completing 20 deals in 13 years, we are more active than ever in seeking further good quality acquisition opportunities. We are seeing an increased flow of opportunities for appraisal, and are now widely recognised as a significant player in this field. Potential vendors also recognise that the new borrowing facilities agreed with our bank in November 2010 enable us to acquire on a larger scale than hitherto, if the right opportunities arise.

Chairman’s and Chief Executive’s Statementcontinued

Chairman’s and Chief Executive’s Statement

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As previously announced, Novartis has served notice to terminate in December 2012 a distribution agreement which commenced in 1998 covering nine brands which together generate around £0.5m per annum of gross margin. The agreement provides for Alliance to receive some compensation following its termination.

SalesThe 4% sales increase was achieved despite a reduction in Deltacortril sales from £7.3m in H1 2010 to £3.6m in H1 2011. This decline was concentrated on the second quarter as the impact of the additional competition was felt more severely then, and was also caused by a reduction in the market size as prescribers were encouraged to switch away from the enteric-coated form of prednisolone to cheaper, uncoated tablets. We therefore expect Deltacortril sales in the second half of the year to be lower than the first half.

Excluding Deltacortril, our other products increased sales by about £4.7m, representing growth of 29%.

This growth included a 26% uplift for Hydromol, a range of ointments and emollients which accounts for half our dermatology sales and is the main focus of our promotional investment.

Our oncology portfolio, acquired from Cambridge Laboratories, also grew strongly. In May we were pleased to renew the agreement under which we distribute ImmuCyst™ in the UK for Sanofi, for up to seven more years. With annual sales of £3.8m, this bladder cancer treatment is the largest of the oncology products. Our sales force has been marketing it successfully — like for like sales in the first half of this year were up 13% over the corresponding period of last year. Sanofi’s renewal of the agreement was a vote of confidence in our performance. The renewal triggered the release of deferred payments to Cambridge Laboratories relating to the acquisition.

Sales of our Nu-Seals™ enteric-coated aspirin were impacted by an across-the-board cut in pharmaceuticals prices required by the government in Ireland, Nu-Seals’ principal market. Our contribution to an overall industry reduction of €140m a year was set at €0.7m for 2011. This effectively cut the sales value by 14%; but it was partly offset by

volume growth in a flat market, as a competitor’s stock problems enabled us to gain market share. We remain cautious about the outlook for Nu-Seals over the next year or two as the Irish government continues to look at measures to reduce the medicines bill and as we now also expect additional competition in the enteric-coated aspirin market.

CharityWe continue to donate about £20,000 worth of products a year to International Health Partners, a charity that distributes medicines to doctors in the world’s neediest areas.

OutlookOur performance in the first half of 2011 benefited from two factors that will not recur in the second half: relatively strong Deltacortril sales in the first quarter, and a contribution from a long-cycle toxicology product. The Deltacortril boost has been valuable to us, helping us to invest in a strong platform for continued expansion. However, it did temporarily result in some distortion of the business. In 2010, Deltacortril accounted for some 25% of our total sales; by 2012, it may well be less than 10%.

Despite the market changes affecting Deltacortril, 2011 is still expected to be the second-best year in Alliance’s history. The underlying business continues to grow well. We are profitable and have a strong, cash generative portfolio of products, a proven strategy and ample financial resources to support further acquisitions, a number of which we are pursuing at present.

Michael GatenbyChairman6 September 2011

John DawsonChief Executive6 September 2011


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Consolidated Income Statementfor the six months ended 30 June 2011

Six months to Six months to Year to 30 June 2011 30 June 2010 31 Dec 2010 Note £000s £000s £000s

Revenue 24,390 23,357 49,881Cost of sales (10,529) (9,075) (19,483)Gross profit 13,861 14,282 30,398Operating expenses Administration and marketing expense (5,468) (4,913) (10,769)Amortisation of intangible assets (462) (337) (812)Share-based employee remuneration (93) (13) (128)

(6,023) (5,263) (11,709)

Operating profit before exceptional items 7,838 9,019 18,689Exceptional items 4 – (1,715) (1,715)Operating profit 7,838 7,304 16,974

Finance costs Interest paid (805) (1,457) (2,410)Interest income 2 3 7Foreign exchange rate movement (38) 118 75Exceptional finance costs 4 – – (1,774)

(841) (1,336) (4,102)

Profit on ordinary activities before taxation 6,997 5,968 12,872Taxation 5 (1,347) (1,671) (3,918)

Profit for the period attributable to equity shareholders 5,650 4,297 8,954

Earnings per share Basic (pence) 8 2.38 1.97 3.96

Diluted (pence) 8 2.21 1.79 3.64

Financial Statements

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Consolidated Statement of Comprehensive Incomefor the six months ended 30 June 2011

Six months to Six months to Year to 30 June 2011 30 June 2010 31 Dec 2010 £000s £000s £000s

Profit for the period 5,650 4,297 8,954Interest rate swaps — cash flow hedge 1 (62) 1,323Deferred tax on interest rate swap – 17 (371)

Total comprehensive income for the period 5,651 4,252 9,906


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Consolidated Balance Sheetat 30 June 2011

30 June 2011 30 June 2010 31 Dec 2010 Note £000s £000s £000sAssets Non-current assets Intangible fixed assets 62,375 60,762 60,287Property, plant and equipment 811 580 888

63,186 61,342 61,175Current assets Inventories 5,402 4,658 4,544Trade and other receivables 6 8,387 8,413 9,690Cash and cash equivalents 1,368 2,302 1,989

15,157 15,373 16,223

Total assets 78,343 76,715 77,398Equity Ordinary share capital 2,394 2,315 2,361Share premium account 24,815 23,492 24,331Share option reserve 337 129 244Reverse takeover reserve (329) (329) (329)Other reserve (19) (1,017) (20)Retained earnings 13,785 5,369 9,494

Total equity 40,983 29,959 36,081Liabilities Non-current liabilities Long-term financial liabilities 13,550 20,159 15,000Convertible debt 4,447 5,585 4,822Other liabilities 40 61 60Derivative financial instruments 8 887 13Deferred tax liability 3,871 1,934 3,803Provisions for other liabilities and charges 387 718 641 22,303 29,344 24,339Current liabilities Cash and cash equivalents 1,480 1 –Financial liabilities 4,000 3,824 4,001Corporation tax 504 1,170 721Trade and other payables 7 8,667 11,453 11,869Derivative financial instruments 19 526 15Provisions for other liabilities and charges 387 438 372 15,057 17,412 16,978Total liabilities 37,360 46,756 41,317Total equity and liabilities 78,343 76,715 77,398


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Consolidated Statement of Cash Flowsfor the six months ended 30 June 2011

Six months to Six months to Year to 30 June 2011 30 June 2010 31 Dec 2010 £000s £000s £000s

Operating activities Result for the period before tax 6,997 5,968 12,872Interest payable 805 1,339 1,919Interest receivable (2) (3) (7)Other finance costs 38 124 2,190Depreciation of property, plant and equipment 132 61 178Amortisation of intangible assets 462 337 812Change in inventories (858) (1,685) (1,571)Change in trade and other receivables 1,303 (790) (2,040)Change in trade and other payables (3,330) 2,558 3,623Tax paid (1,497) (76) (1,290)Share options charge 93 13 128

Cash flows from operating activities 4,143 7,846 16,814

Investing activities Interest received 2 3 7Payment of deferred consideration (1,120) (20) (20)Purchase of property, plant and equipment (55) (509) (934)Purchase of other intangible assets (2,550) (13,167) (14,264)

Net cash used in investing activities (3,723) (13,693) (15,211)

Financing activities Interest paid and similar charges (729) (1,451) (1,919)Termination of interest rate swaps – – (1,145)Proceeds from issue of shares – 7,290 7,290Loan issue costs (26) (100) (480)Proceeds from exercise of share options 123 110 196Dividend paid (401) (136) (668)Receipt from borrowings 2,550 4,000 24,000Repayment of borrowings (4,000) (1,948) (27,278)

Net cash used in financing activities (2,483) 7,765 (4)

Net movement in cash and cash equivalents (2,063) 1,918 1,599Cash and cash equivalents at beginning of period 1,989 421 421Exchange losses on cash and cash equivalents (38) (38) (31)

Cash and cash equivalents at end of period (112) 2,301 1,989


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Consolidated Statement of Changes in Equityat 30 June 2011

Ordinary Share Share Reverse share premium option takeover Other Retained Total capital account reserve reserve reserve earnings equity £000s £000s £000s £000s £000s £000s £000s

Balance 1 January 2010 1,933 14,674 116 (329) (972) 1,208 16,630

Issue of shares 382 8,818 – – – – 9,200Dividend paid – – – – – (136) (136)Employee benefits – – 13 – – – 13

Transactions with owners 382 8,818 13 – – (136) 9,077Profit for the period – – – – – 4,297 4,297Other comprehensive income Interest rate swaps — cash flow hedge – – – – (62) – (62)Deferred tax on interest rate swap – – – – 17 – 17

Total comprehensive income for the period – – – – (45) 4,297 4,252

Balance 30 June 2010 2,315 23,492 129 (329) (1,017) 5,369 29,959

Balance 1 January 2010 1,933 14,674 116 (329) (972) 1,208 16,630

Issue of shares 428 9,657 – – – – 10,085Dividend paid – – – – – (668) (668)Employee benefits – – 128 – – – 128

Transactions with owners 428 9,657 128 – – (668) 9,545Profit for the period – – – – – 8,954 8,954Other comprehensive income Interest rate swaps — cash flow hedge – – – – 1,323 – 1,323Deferred tax on interest rate swap – – – – (371) – (371)

Total comprehensive income for the period – – – – 952 8,954 9,906

Balance 31 December 2010 2,361 24,331 244 (329) (20) 9,494 36,081

Balance 1 January 2011 2,361 24,331 244 (329) (20) 9,494 36,081

Issue of shares 33 484 – – – – 517Dividend payable/paid – – – – – (1,359) (1,359)Employee benefits – – 93 – – – 93

Transactions with owners 33 484 93 – – (1,359) (749)Profit for the period – – – – – 5,650 5,650Other comprehensive income Interest rate swaps — cash flow hedge – – – – 1 – 1Deferred tax on interest rate swap – – – – – – –

Total comprehensive income for the period – – – – 1 5,650 5,651

Balance 30 June 2011 2,394 24,815 337 (329) (19) 13,785 40,983


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1. Nature of operationsAlliance Pharma plc (“the Company”) and its subsidiaries (together “the Group”) acquire, market and distribute pharmaceutical products. The Company is a public limited company incorporated and domiciled in England. The address of its registered office is Avonbridge House, Bath Road, Chippenham, Wiltshire, SN15 2BB.

The Company is listed on the London Stock Exchange, Alternative Investment Market (AIM).

2. General informationThe information in these financial statements does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. A copy of the statutory accounts for the period ended 31 December 2010, prepared under International Financial Reporting Standards, has been delivered to the Registrar of Companies. The auditors’ report on those accounts was unqualified.

The interim financial report for the six month period ended 30 June 2011 (including comparatives for the six months ended 30 June 2010) was approved by the Board of Directors on 6 September 2011.

3. Accounting policies The same accounting policies and methods of computation are followed in the interim financial report as published by the Company in its 31 December 2010 Annual Report. The Annual report is available on the Company’s website at www.alliancepharma.co.uk.

Notes to the Half Yearly Reportfor the six months ended 30 June 2011


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Notes to the Half Yearly Reportcontinued

4. Exceptional items

30 June 2011 30 June 2010 31 Dec 2010 £000s £000s £000s

Onerous contracts – 1,266 1,266Redundancy costs – 449 449

– 1,715 1,715Termination of interest rate swaps and loan issue – – 1,774

– 1,715 3,489

Leases and associated costs for offices in Newcastle and Dublin, acquired as part of the Cambridge Laboratories acquisition, have been treated as onerous contracts. As at 30 June 2010 an amount of £1.3m, discounted at a rate of 10%, representing payments due until the end of each contract had been recognised. The Dublin property lease ran until 2011 and the Newcastle property lease will run until 2015. An amount of £0.4m has also been recognised in relation to redundancy costs associated with the acquisition.

During 2010, the Group restructured its debt, extinguishing its current loans and swaps and replacing them with new. In accordance with IAS 39 the extinguishment method of accounting was used, as opposed to the substantial modification method, as the new terms of the debt restructure were deemed to be substantially different from the old. As a result £1.8m was recognised in the income statement being consideration paid for the termination of the swaps and release of unamortised finance costs in relation to the previous loans in existence. As required by IAS 39 as the new borrowings were with the same lender, these expenses were recognised through the income statement.

5. Taxation Analysis of charge in period.

30 June 2011 30 June 2010 31 Dec 2010 £000s £000s £000s

United Kingdom corporation tax at 27%/28%/28% In respect of current period 1,504 1,187 1,936 Adjustment in respect of prior periods (225) – –

Current tax 1,279 1,187 1,936Deferred tax 68 484 1,982

Taxation 1,347 1,671 3,918


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6. Trade and other receivables

30 June 2011 30 June 2010 31 Dec 2010 £000s £000s £000s

Trade receivables 7,958 8,030 9,139Other receivables 36 120 55Prepayments and accrued income 376 221 439Amounts owed by joint venture 17 42 57

8,387 8,413 9,690

7. Trade and other payables

30 June 2011 30 June 2010 31 Dec 2010 £000s £000s £000s

Trade payables 597 1,870 3,799Other taxes and social security costs 955 1,531 1,109Accruals and deferred income 5,092 4,745 4,841Other payables 1,065 3,307 2,120Dividend payable 958 – –

8,667 11,453 11,869


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Notes to the Half Yearly Reportcontinued

8. Earnings per share (EPS)Basic EPS is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. For diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

A reconciliation of the weighted average number of ordinary shares used in the measures is given below:

Six months to Six months to Year ended 30 June 2011 30 June 2010 31 Dec 2010 Weighted average Weighted average Weighted average number of shares number of shares number of shares 000s 000s 000s

For basic EPS 237,415 217,778 226,115Share options 2,366 4,937 4,503Conversion of Convertible Unsecured Loan Stock (CULS) 21,467 27,141 23,339

For diluted EPS 261,248 249,856 253,957

The adjusted basic EPS is intended to demonstrate recurring elements of the results of the Group before exceptional items. A reconciliation of the earnings used in the different measures is given below:

Six months to Six months to Year ended 30 June 2011 30 June 2010 31 Dec 2010 £000s £000s £000s

Earnings for basic EPS 5,650 4,297 8,954Exceptional items – 1,715 3,489Tax effect of exceptional items – (480) (977)

Earnings for adjusted EPS 5,650 5,532 11,466


Earnings for basic EPS 5,650 4,297 8,954Interest saving on conversion of CULS 180 228 392Tax effect of interest saving on conversion of CULS (47) (64) (110)

Earnings for diluted EPS 5,783 4,461 9,236


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8. Earnings per share (EPS) continued


Earnings for adjusted EPS 5,650 5,532 11,466Interest saving on conversion of CULS 180 228 392Tax effect of interest saving on conversion of CULS (47) (64) (110)

Earnings for diluted adjusted EPS 5,783 5,696 11,748

The resulting EPS measures are:

Six months to Six months to Year ended 30 June 2011 30 June 2010 31 Dec 2010 Pence Pence Pence

Basic EPS 2.38 1.97 3.96

Diluted EPS 2.21 1.79 3.64

Adjusted basic EPS 2.38 2.54 5.07

Diluted adjusted EPS 2.21 2.28 4.63

9. AcquisitionsIn April 2011 Alliance Pharmaceuticals Limited acquired the UK and Irish rights to the brands Anbesol and Ashton & Parsons from a subsidiary of Reckitt Benckiser Group plc for £2.6m cash consideration. Anbesol is used to treat mouth ulcers, teething pains and denture irritation. Ashton & Parsons is used in infants for the symptomatic relief of pain and stomach upset caused by teething.

In September 2011 Alliance Pharmaceuticals Limited acquired the UK marketing rights to six products from Beacon Pharmaceuticals Limited for £2.4m cash consideration. The main product acquired is Rizuderm (isotretinoin), which is used in the treatment of severe acne.


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Independent Review Report to Alliance Pharma plc

IntroductionWe have been engaged by the Company to review the financial information in the half yearly financial report for the six months ended 30 June 2011 which comprise the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of cash flows, consolidated statement of changes in equity and the related notes. We have read the other information contained in the half yearly financial report which comprises only the Chairman’s and Chief Executive’s statement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in ISRE (UK and Ireland) 2410, ‘Review of Interim Financial Information performed by the Independent Auditor of the Entity’. Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusion we have formed.

Directors’ responsibilitiesThe half yearly financial report is the responsibility of, and has been approved by, the Directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the financial information in the half yearly financial report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.

As disclosed in Note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The financial information in the half yearly financial report has been prepared in accordance with the basis of preparation in Note 3.

Our responsibility Our responsibility is to express to the Company a conclusion on the financial information in the half yearly financial report based on our review.

Scope of reviewWe conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’ issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

ConclusionBased on our review, nothing has come to our attention that causes us to believe that the financial information in the half yearly financial report for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with the basis of accounting described in Note 3.

Grant Thornton UK LLPAuditorBristol6 September 2011

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Shareholder Notes


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Shareholder Notes

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AUDiTOrSGrant Thornton UK LLPHartwell House55-61 Victoria StreetBristolBS1 6FT

BAnKerSLloyds Bank Corporate MarketsThe AtriumDavidson HouseForbury SquareReadingBerkshireRG1 3EU

cOrPOrATe ADViSOrSNumis Securities Ltd10 Paternoster SquareLondonEC4M 7LT

FinAnciAl PrBuchanan Communications45 MoorfieldsLondonEC2Y 9AE

reGiSTrArSCapita RegistrarsThe Registry34 Beckenham RoadBeckenhamKentBR3 3TU

SOliciTOrSFasken Martineau LLP17 Hanover SquareLondonW1S 1HU

reGiSTereD OFFiceAvonbridge HouseBath RoadChippenhamWiltshireSN15 2BB

cOmPAnY nUmBer4241478

Advisors

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Alliance Pharma plcAvonbridge HouseBath RoadChippenhamWiltshire SN15 2BBUnited Kingdom

T: +44 (0)1249 466966F: +44 (0)1249 466977E: [email protected]

www.alliancepharma.co.uk

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