British company IS Pharma has acquired Dublin-based HBT for €4.4 million as part of an alliance with Swiss pharmaceutical company Helsinn.

HBT, which employs 20 people in Dublin, is a subsidiary of Helsinn, a privately-held pharmaceutical company. It makes hospital and generic products, and owns the rights to market Aloxi in Ireland.

IS Pharma management met with staff in Dublin this morning.

The last set of published accounts show that HBT had sales of €9.3 million in the year ended  December 31st, 2009, and profit before tax of €0.5 million. HBT had gross assets at the end of 2009 of €7.3 million.

The acquisition will give IS Pharma, which is listed on the London AIM exchange, a direct sales presence in Ireland which will be used to market IS Pharma's existing portfolio of products.

The €4.4 million price-tag is made up of €1.9 million in cash and the issue of 1,008,115 ordinary shares at 85 pence on completion. A further €1.5 million will be payable 12 months after completion, conditional on satisfaction of certain completion and integration milestones.

The acquisition is also subject to adjustment for working capital above or below an agreed amount.