Godalming UK, 27 September 2006: Sinclair Pharma plc ("Sinclair"), the international specialty pharmaceutical company, announces today that it has acquired the UK-based sales and marketing company Ashbourne Pharmaceuticals Ltd ("Ashbourne") for £1.25m.
The terms encompass an initial payment £1.05 million, with repayments of intra group debt bringing the total to £1.25 million. Sinclair is funding the transaction with its own cash resources.
Ashbourne's turnover last year was £3.2m, loss before tax was £0.3m and the company generated operating cash inflow of £0.2m. The company currently has cash of approximately £0.6m and its Net Asset Value is approximately £1.1m. Through integration into the Sinclair group, Ashbourne is expected to be able to reduce its costs.
Sinclair intends to build the existing business as well as developing the company to support Sinclair's expansion into the UK. This will support the Sinclair goal of achieving critical mass in sales and marketing in the key European territories.
Ashbourne currently targets the dispensing doctor market in the UK, which accounts for 18% of the UK GP market by cash, and is regarded as a leading company in this sector. The company co-promotes third party pharmaceuticals and its own range of branded generics. Ashbourne's existing infrastructure also includes regulatory, distribution, marketing and sales and its product range and target markets will be expanded as a member of the Sinclair group of companies. The commercial management of Ashbourne will stay in place, reflecting their commitment to the business.
In recent years, Sinclair has been building sales and marketing operations in key European markets. The acquisition of Ashbourne consolidates this strategy, adding the UK to its sales operations in France, Italy, Spain and Portugal. The Sinclair product portfolio is also commercialised through its marketing partner network in 60 countries, including the US and Germany.
Commenting on the role of this acquisition in Sinclair's development strategy, Dr Michael Flynn, CEO of Sinclair Pharma, said: "The acquisition of Ashbourne brings us another step closer to building a direct commercial presence in all the major EU territories, and importantly it gives us access to direct sales operations in our home market. We will be building on the existing commercial presence of Ashbourne in the dispensing doctor sector. We also intend to develop the company and harness the expertise of the employees to support Sinclair's development strategy."
Leslie Galloway, CEO of Ashbourne Pharmaceuticals, said: "We are excited about becoming part of Sinclair's expanding global operations. Sinclair will benefit from our skill and reputation in the UK market, and in turn, we are looking forward to playing an important part in enhancing the growth of this dynamic international pharmaceutical company."
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Notes to Editors
Sinclair Pharma plc is an international specialty pharmaceutical company. It has a growing sales and marketing operation that is already present in France, Spain, Italy and Portgual, and a complementary marketing partner network that spans 60 countries. Sinclair focuses in niche/specialty therapeutic areas and its current portfolio focuses on products for dermatological conditions and oral health.
Sinclair's goal is to become a sustainably profitable international pharmaceutical company, focusing in niche therapeutic areas, with a direct commercial presence in the key commercial markets.
Sinclair Pharma plc is quoted on the Alternative Investment Market (AIM) on the London Stock Exchange. www.sinclairpharma.com
For further information please contact:
Sinclair Pharma plc UK Dr Michael Flynn, CEO Financial Dynamics Jerry Randall ACA CFO Ben Atwell Zoe McDougall, Corporate Communications John Gilbert John Barrington-Carver, Corporate Tel +44 (0) 207 831 3113 Communications Tel: +44 (0) 1483 410 600
Germany MC Services Raimund Gabriel Hilda Juhasz Tel +49 89 210 228 0
"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: Some or all of the statements in this document that relate to future plans, expectations, events, performances and the like are forward-looking statements, as defined in the US Private Securities Litigation Reform Act of 1995. Actual results of events could differ materially from those described in the forward- looking statements due to a variety of factors.
 Last financial year ended November 2005  At 31 August 2006
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