(MENAFN- ProactiveInvestors)Allergy Therapeutics (LON:AGY) has snapped up Spanish vaccine specialist Alerpharma in a deal which could rise to €5.8mln. AIM-listed Allergy has paid an initial cash sum of €3.8mln for Alerpharma which owns Inmunal a spin-out from biopharmaceutical company Zeltia Group. The Madrid-based company posted a pre-tax profit of €146000 last year on revenues of €4.5mln. Under the terms of the deal Allergy could end up paying an extra €2mln for the group based on its 2016 sales performance. Inmunal looks to be the key asset. The subsidiary has product lines in immunotherapy vaccines bacteriological vaccines and diagnostics and runs a newly-built state-of-the-art manufacturing facility Madrid. Its product range includes a specialised franchise on an olive vaccine which is one of the most important allergens in southern Europe. "In addition to progressing with our US opportunity building a strong business platform in Europe has been a top priority for our management team' said Allergy Therapeutics chief executive Manuel Llobet. 'Spain represents a very logical target market for Allergy Therapeutics because it is our second largest market after Germany but it is where we currently have our lowest comparative market share. 'The combination of our Spanish subsidiary and Inmunal will provide us with significant cross selling opportunities and cost synergies which will enhance our market share and increase our critical mass enabling us to become one of the leading allergy immunotherapy companies in the Spanish market." Allergy Therapeutics shares were flat at 20p following the news.
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