Alliance Pharma has officially entered the scar treatment market with its acquisition of ScarAway, the leading silicone-based scar treatment brand in the US. The company has also announced the launch of Kelo-cote to the consumer markets.
Alliance’s strategy in the US has been boosted by the acquisition of ScarAway, as it gives Alliance with a well-established distribution network from which the group will gain future growth.
The current retail value for the US scar treatment market is $90m per year.
ScarAway currently has silicone scar treatment available in sheet, gel and spray form and has generated $10m in net sales from February 2021 and 2022.
With their latest revenue, the company is the leader in the silicon scar treatment market.
ScarAway is the second-largest player in the scar treatment category, which covers both silicone-based and cream-based products, with a 28% market share, trailing Mederma which has 40%.
Kelo-cote available in gel and spray is an international brand recommended by healthcare experts globally.
Kelo-cote previously had a minor e-Commerce presence in the United States, with limited advertising and net sales of around $1m between February 2020 and 2021.
With Alliance’s existing rights and the newly acquired Kelo-cote rights in the US, the pharma company now has its first global brand in its portfolio.
Alliance paid Perrigo a total of $19.4m in cash and debt, which is the fair value of the intellectual property purchased.
The Board anticipates that the transaction will boost profitability immediately, with additional benefits expected in future years.
In the past year, ScarAway and Kelo-cote earned a total EBITDA of almost $2m.
Peter Butterfield, Chief Executive Officer, Alliance Pharma, stated, “I’m delighted to have completed such a strategically important and earnings enhancing acquisition for Alliance which creates our first fully global brand in Kelo-cote and significantly enhances our presence in the largest consumer healthcare market in the world.”
Alliance Pharma shares were up 2.5% to 114.8p following the new acquistions.