December 22, 2008 / 7:31 AM / 11 years ago

UPDATE 2-UK's Sinclair, York to co-promote skincare products

* Deal covers Atopiclair, Zindaclin and QV

* Effectively doubles each company’s UK sales force

* Could be extended to cover Spain, Germany and maybe France

* Sinclair CEO says merger not part of talks at the moment (Adds company, analyst comments, share price)

LONDON, Dec 22 (Reuters) - Skin care specialists York Pharma YRK.L and Sinclair Pharma SPH.L said they will co-promote a number of products in the UK, effectively doubling the size of each company’s UK sales force.

Sinclair CEO Michael Flynn said the deal, which covers Sinclair’s atopic dermatitis treatment Atopiclair and York Pharma’s acne product Zindaclin and emollient QV, could be extended to cover Spain and Germany and possibly France.

He added that a merger with York was not part of the discussions between the companies at the moment.

“We’re not looking that far at the moment, it’s purely commercial collaboration at the moment,” he told Reuters in a telephone interview.

He added he believes collaboration deals would make sense for a number of smaller companies.

“In any instance where they have sub-optimal coverage it makes sense to look for a similar company that might be in the same position,” he told Reuters.

Analyst Andrew Jones at Investec said: “It’s quite exciting long-term, but I think today’s announcement not so much.

“If they start discussing merging their EU sales force and bringing some other products in it opens a door.”

York’s shares rose 11 percent to 14 pence per share following the news, Sinclair’s share price was flat at about 17 pence. (Reporting by Ben Deighton; Editing by Victoria Bryan)

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