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Alliance Pharma

July 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • APH
  • Price:
  • 27.75p
Shares in Alliance have slipped since last month's news that a third rival has entered the market for Deltacortril, the treatment for rheumatoid arthritis and asthma. Since then, Numis has shaded its forecast for this year to 31 December by £0.5m to £10.6m pretax (eps 3p). Although the impact on sales is probably only £3m the high margin nature of the drug means that 2012 sees a harsher downgrade from £13.5m to £11.1m (eps 3.1p). That said debt continues to fall away rapidly and we expect an eps enhancing acquisition to fill the gap before too long. Strong hold. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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