Alliance Pharma has reassured community pharmacies across the UK that its proposed £349.7 million takeover by its largest shareholder DBAY Advisors will not impact the supply of medicines to patients.

Alliance, which holds the marketing rights to 80 consumer healthcare brands and prescription medicines sold in over 100 countries including the UK, said the agreement will see its shareholders get 62.5p per share, a 41 per cent rise on its closing share price of 44.35p on Thursday.

Alliance, who said it does not supply pharmacies directly but supplies "all major wholesalers who in turn serve the UK community pharmacies," said its board of directors had “unanimously” recommended accepting the terms.

However, a company spokesperson confirmed to Independent Community Pharmacist the deal still needs shareholders’ approval and insisted that once ratified, it will not impact the supply of OTC and prescription medicines to pharmacies.

"DBAY Advisors’ proposed acquisition of Alliance Pharma PLC is subject to shareholder approval and other conditions typical of a transaction of this type," Alliance told ICP.

"No impact on the supply of OTC products and prescription medicines is expected during the proposed acquisition or following the acquisition if it completes.

"Alliance’s board of directors has recommended that shareholders vote in favour of the acquisition as it will enable Alliance to accelerate its strategy to grow through increased investment in new product innovation and development, M&A and expansion into new markets."

DBAY Advisors is based in the Isle of Man and already holds a 27.9 per cent stake in Alliance, which has been listed on London's alternative investment market since 2003 but is set to leave the public markets.

Alliance has had a difficult last few years. The Competition and Markets Authority fined it £7.9 million in February 2022 for alleged anti-competitive behaviour, although that was eventually overturned following an appeal.

In May 2024, Alliance’s long-serving chief executive Peter Butterfield stepped down following delays to the publication of its 2023 financial results, although at the time, the company said his departure was not related to those delays.

In a note released on Friday, the investment bank Peel Hunt said: “We have recognised for some time that Alliance has faced challenges in executing a growth strategy and getting full value from its legacy roll-ups, such that it was difficult to imagine management being given a remit to do more on public markets.”

The note also contained a statement from DBAY who said: “Alliance needs to implement a range of operational and strategic initiatives, in conjunction with a period of accelerated investment and selective acquisitions of complementary products, in order to fulfil the growth potential of the business.”

According to Forbes, DBAY’s “partner in the deal” is Edmond de Rothschild’s ERES IV fund.