Specialty drugmaker Alliance Pharma's sales jumped in the first half of the year as its two key drugs boosted revenues from international markets.
The pharmaceutical firm's revenue rose 8.4 per cent compared with the previous year to £50.3m as sales of its top-selling scar-diminishing product Kelo-cote jumped 52 per cent to £6.2m and sales of MacuShield, its nutritional supplement to treat age-related vision loss, rose 67 per cent to £3.4m.
For the six months to the end of June, underlying profit before tax rose 1.7 per cent to £11.9m.
Shares in the Aim-listed firm lifted 1.07 per cent to 53.06p.
Why it's interesting
Alliance bought rival Sinclair Pharma's healthcare assets for £128m in December 2015, and the firm has now completed the integration of the 27 products it acquired, which effectively doubled the size of the group.
The firm also benefited from the weakness of the pound compared to the dollar and euro in the first six months of the year, with revenues boosted £2.6m due to exchange rate movements.
Alliance's international growth brands, Kelo-cote and MacuShield, showed promising results in the first half, and the firm aims to continue driving organic growth of the two brands through targeted marketing investment. Its two-pronged growth strategy also includes seeking additional growth from bolt-on acquisitions.
As the firm had previously announced, its Dicletctin treatment for nausea during pregnancy was not approved by UK regulators.
"Whilst disappointing, the group still has growth opportunities in its product portfolio and continues to focus on its buy and build strategy," said Sheena Berry, an analyst at N+1 Singer.
"We continue to think Alliance Pharma represents an interesting opportunity."
What Alliance Pharma said
Andrew Smith, chairman at Alliance, said:
Following a transformational 2016, the business has performed well in the first half of 2017. With the integration of the Sinclair Pharma products now complete we are strategically positioned for growth and, with leverage levels reducing, we are now able to pursue bolt-on acquisitions.