In September 2002, Bank of Scotland Corporate Banking provided a combined debt and equity funding package of £14.6 million, through its Integrated Finance team, to Alliance for the acquisition of three branded prescription drugs: Nu-Seals (enteric coated aspirin), Alphaderm (hydrocortisone and urea) and Aquadrate (urea). KPMG Corporate Finance advised Alliance on the deal.

Nu-Seals was developed by Eli Lilly & Company Limited exploiting a special tablet formulation that releases aspirin into the intestines rather than the stomach thereby minimising gastric irritation. Its 75mg tablet is a major seller and the licence is for the UK and Republic of Ireland.

Alliance has acquired from Procter & Gamble Pharmaceuticals UK Limited its two products for the treatment of severely dry skin and eczema, Alphaderm and Aquadrate. Launched in 1974, both drugs are well respected by dermatologists and general practitioners.

John Dawson, Managing Director of Alliance Pharmaceuticals commented: "We are absolutely delighted with these acquisitions and the funding package provided by Bank of Scotland. These latest acquisitions are another important part of our growth strategy and bring our total portfolio of products to 23. It is a combination of our marketing, regulatory and technical expertise that enables us to identify key product acquisitions that will deliver sustainable increases in profitability. But moreover our relationship with Bank of Scotland as an equity partner is very forward looking. We shall continue building our portfolio of established brands, but in addition we are also looking at some very exciting new launch prospects. Our aim is to build a balanced marketing and distribution company that will become the licensing partner of choice for both "big pharma" making established-brand divestments and specialist R&D pharma seeking a launch partner "

Kenny Hughes, Director of Integrated Finance at Bank of Scotland, said: "Bank of Scotland is delighted to have structured an Integrated Finance package to support Alliance Pharmaceuticals' expansion plans. An existing customer of the Bank, the company has a clear strategy to build a sizable business through the acquisition of established pharmaceutical brands and this transaction underlines our commitment to support proven management teams with innovative funding products to allow them to achieve their business goals. "

Adrian Dray, KPMG Corporate Finance head of private equity for the South, added: "Alliance Pharmaceuticals has again illustrated its ability to acquire quality pharmaceutical brands to add to its successful product portfolio. KPMG Corporate Finance was delighted to act for the company for a third time and we look forward to advising upon future transactions."