Immediate one off payment significantly reduces deferred consideration
London, 30 March 2016 Sinclair Pharma plc (SPH.L), (“Sinclair” or the “Company”) the international specialty pharma company, today announces a significant amendment to the acquisition agreement signed with the vendors of AQTIS Medical BV in March 2014. Under the amended agreement Sinclair will make an immediate one-off payment of €15.0 million in cash to settle all future milestones that remained due from the acquisition of AQTIS (Ellansé) in March 2014.
These future sales and US approval milestones all of which were expected to have been paid over next 3-5 years and would have totaled €36 million before this new agreement. There will now be no further amounts payable for the acquisition of Ellansé. We anticipate that the transaction will result in a one-off exceptional credit of approximately £8 million in the current financial year ending 30 June 2016.
Chris Spooner commented:
“Ellansé sales performance has been strong in H1 with in-market growth of 100% reported in our H1 results announced today. This value enhancing transaction demonstrates the value we can create using the strength of our balance sheet since the disposal of the non-aesthetics business for £132 million in December 2015.”
For further information please contact:
Sinclair IS Pharma plc Tel: +44 (0) 20 7467 6920
Peel Hunt LLP (NOMAD and Broker) Tel: +44 (0) 20 7418 8900
FTI Consulting Tel: +44 (0) 203 727 1000
Notes to Editors:
About Sinclair Pharma plc – www.sinclairpharma.com
Sinclair Pharma plc is an international company operating in the fast growth, high gross margin, global aesthetics market. Sinclair has built a strong portfolio of differentiated, complementary aesthetics technologies, which are experiencing significant growth, targeting unmet clinical needs for effective, high quality, longer duration, natural looking and minimally-invasive treatments. The Company is planning entry to multiple new geographic markets and line extension launches over the next few years. Sinclair has an established sales and marketing presence in the leading EU markets, an option to acquire its Brazilian distributor and a network of international distributors. The Company is undergoing a strategic review and various options distribution options for the US launch of Silhouette InstaLift™ are under consideration.
Download the announcement here(.pdf)