Alliance Pharma buys rights to Novartis' obstetric drug Syntometrine
(Reuters) - Specialty pharmaceutical company Alliance Pharma Plc said it bought all existing rights to obstetric drug Syntometrine from Novartis AG for $11.5 million.
Alliance Pharma, which acquires, markets and distributes pharmaceutical products, already owns the UK rights to Syntometrine, a drug used in the final stage of labor.
Sales of Syntometrine by Novartis were $3.2 million and gross margin was $2.8 million in the 12 months to March 2013, the company said in a statement.
Alliance Pharma, which generated 44.9 million pounds in revenue last year, said it would fund the acquisition from cash on hand and bank facilities, including a 3.5 million pound ($5.39 million) drawdown from its 30 million pounds acquisition facilities.
($1 = 0.6497 British pounds)
(Reporting by Karen Rebelo in Bangalore; Editing by Supriya Kurane)
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