International healthcare firm Alliance Pharma has said its supply chain was “holding up well” but demand was “harder to forecast”.
One of the big fears amid the Covid-19 crisis has been that supplies of vital drugs, everyday medicines and other healthcare products may dry up.
Some UK retailers have run out of basics like paracetamol due to panic-buying, while one pharmacy chain ramped up prices of Calpol to three times its normal price.
Alliance Pharma owns or licenses the rights to more than 90 pharmaceutical and consumer healthcare products in more than 100 countries.
Its “star” brands include MacuSheild eyecare treatments, Kelo-cote scar gels, Nizoral anti-dandruff shampoo and Vamousse – a range of products to treat head lice and nits.
The firm yesterday announced a 17% year-on-year rise in underlying profits to £32.9 million in 2019. Statutory pre-tax profits rose by 36% to £31.1m, while revenue grew by 15% to £135.6m.
Boss Peter Butterfield said: “Notwithstanding the current uncertainty created by coronavirus, our underlying business remains resilient, with strong financials, good liquidity and covenant headroom, and we look forward to continuing our path of growth.
“Our supply chain is holding up well and we do not anticipate any material supply impact (from Covid-19) in the current year.
“For those products we sell directly, we hold typically a minimum of three months of inventory and in some cases more, depending on the level of clinical need.
“Most of our international sales are generated via distributors, who typically hold three to six months of inventory.”
He added: “While supply is holding up well, demand is harder to forecast.
“Although the Covid-19 situation in China and across the Asia Pacific region looks to be improving, we anticipate that demand in the Asia Pacific region, including China, will be lower in the first half of 2020 and then, depending on the speed with which this region returns to normality, begin to recover in H2.
“Sales in our UK and mainland Europe businesses are expected to be impacted, but to a lesser extent, due to the higher proportion of prescription medicines sold in this region.”