York Pharma to float on AIM

York Pharma, a strategic acquirer, developer and marketeer of pharmaceutical products specifically in the field of dermatology is to seek admission to and trade on the London Stock exchange's Alternative Investment Market (AIM)

Terry Sadler, ceo of York Pharma, founded the Group's core business in April 2003, in order to capitalise on market opportunities created by the changing environment within both pharmaceutical markets and the pharmaceutical industry.

A number of mergers between major pharmaceutical companies have resulted in widespread rationalisation in the industry and the adoption of lower risk product development strategies and the divestment of non-core products and product portfolios.

This divestment has allowed York Pharma to commence the building of its product portfolio within the dermatological market, which will be the Group's core focus area. York Pharma will market and supply branded prescription products to pharmaceutical wholesalers, hospitals and general practitioners within the area of dermatology.

Within the prescription pharmaceutical market, there are many therapeutic areas, and an even greater number of sub segments, which in view of their smaller size and market fragmentation, hold little attraction for the larger pharmaceutical companies.

York Pharma believes that this market segmentation offers a significant opportunity to capitalise on a novel, patented, branded prescription product, while also avoiding direct competition with larger multinational competitors.

It will be marketing driven, and may capture late stage or already marketed and approved products in the North American and European arena from a number of sources. These may include the acquisition of non-core products from other pharmaceutical companies and products from specialist developers of dermatological products.

Sales of dermatological products in the developed territories of the world for the 12 months ending October 2003 (as measured by IMS) were US$9.3bn having grown 10% year on year since October 2002.

On the decision to float on AIM, Sadler said: 'The Company will continue to identify and evaluate product opportunities within the sphere of dermatology which, together with Abasol, our first nce, will help to create an International pharmaceuticals group, with a specific focus on dermatology. We believe the admission to trading on AIM will give York Pharma a solid and visible platform from which to develop a substantial business.'