One to Watch

ALLIANCE Pharma is a speciality drugs firm. It is involved in the development, marketing and distribution of pharmaceutical products in the UK, Ireland and China.

In February, it bought Cambridge Laboratories, an acquisition that will give Alliance the rights to 18 prescription products. The deal, the largest completed by Alliance to date, will add about 11 million of recurring revenue annually.

Generally, 2009 was a transformational year for Alliance. Sales soared, up some 44 per cent, with gross profits 60 per cent higher at 18m. This increase included a greater contribution from higher-margin brands. Alliance has also been expanding its sales and marketing team, which will help to promote the group's core brands across their markets. The firm has paid a maiden dividend.

Pharmaceutical stocks generally have been pretty dreary over the past couple of years. Alliance looks a good example of a smaller, well managed proposition with an established portfolio of products which, together, offer excellent potential.

The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.

Dignity

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Broker says BUY

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