MARKET REPORT: Elixir of youth renews Sinclair as it announces sale of medical dermatology business to Alliance Pharma for £127.5m

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As their American counterparts spent the Thanksgiving Day holiday scoffing turkey, stuffing and pumpkin pie, washed down with Californian red, buyers at home injected life into Sinclair IS Pharma after it announced the sale of its medical dermatology business to Alliance Pharma for £127.5million – 26.5p a share. They chased the shares up to 39.5p before they closed 2p better at 37.75p.

The firm remains in takeover talks with interested global parties who would love to get their hands on Silhouette, its subsidiary company which makes Silhouette Soft, a £1,200 anti-ageing treatment that could turn out to be better than Botox.

Sinclair remains in takeover talks with interested global parties who would love to get their hands on Silhouette, its subsidiary company which makes Silhouette Soft, a £1,200 anti-ageing treatment that could turn out to be better than Botox

It’s easy to see why when you consider that Viagra manufacturer Pfizer is forking out £106billion on Botox group Allergan. With that in mind, a re-rating for Sinclair IS Pharma must surely be on the cards.

The disposal to Alliance Pharma will help its board focus on the aesthetics business. Broker Aviate Global says that with Silhouette product potentially able to replace invasive facelifts for the cost of an expensive handbag, the value to a buyer should exceed the stub valuation of £50million or 10p a share.

N+1 Singer upgraded to buy from hold and says the deal transforms Sinclair into a pure-play aesthetics business with five core brands and a debt-free balance sheet.

Silhouette annual sales of £87million exceeded expectations ahead of its launch in the US in the second-quarter 2016.

The Indian press has reported that Lupin, the country’s third-largest drugs maker by sales and owned by billionaire Desh Bandhu Gupta, has considered bidding £320million or 65p a share for Sinclair. Any bidder will have to reach agreement with Martin Hughes’s Toscafund which has 29.5 per cent of the equity.

Africa-focused oil and gas producer Ophir Energy gushed 10.4p more to 101.4p amid growing speculation that Maurel & Prom, France’s second biggest oil company, is lining up a knock-out cash offer.

Tony Hayward’s Genel Energy, 8.5p better at 258.75p, was also mentioned in the same breath although it has been the subject of speculation that it is in early stage merger talks with New African Global Energy.

With Wall Street closed for Thanksgiving, dealers in London were left to their own devices. Buyers held centre stage on further consideration of the Chancellor’s Autumn Statement and the Footsie climbed 55.49 points to 6393.13, while the FTSE 250 jumped 105.09 points more to 17216.40.

Firmer commodity prices breathed some life into miners. Controversial commodity trader Glencore rallied 5.85p to 95.88p, while bear closing lifted Anglo American 18.6p to 435.8p and Fresnillo 28.5p to 749p.

Vague takeover rumours continued to help TalkTalk Telecom, up 10.4p more to 250p. It was sold down to 210p last month following a cyber attack.

Sellers were all over PayPoint like a rash and the close was 68p lower at 924.5p. The payment systems provider reported a sharp drop in half-year profits after writing down the value of its mobile and online payment businesses, which it is trying to sell.

NAHL, the operator of the National Accident Helpline, crashed 94.38p or 24 per cent to 295p after investors feared the impact of changes to personal injury claims rules mooted by the Chancellor in his Autumn Statement.

George Osborne proposed restricting the ability for sufferers of minor whiplash injuries to claim compensation, with the Government also announcing its intention to increase the small claims limit from £1,000 to £5,000.

A profits warning dragged EKF Diagnostics 4.38p or 30 per cent lower to 10.12p. The Cardiff-based medical diagnostics company warned that full-year revenues will now be £32million, down from last year’s £40.1million, with profits ‘materially’ affected by several factors. 

The molecular diagnostics division, about which disposal discussions continue, will be partially or completely written off. The closure of a site in Sanford will also affect profits.

Velocys, in which Chelsea FC owner Roman Abramovich owns a 21 per cent stake, put on 2.75p to 49p. 

Buyers reappeared on hearing technical improvements at its pilot gas-to-liquids plant have allowed it to increase capacity of liquid hydrocarbon products by more than 50 per cent, as it begins to commercialise the technology for chemical markets.

A positive trading update lifted Skyepharma 12p to 324p. Trading for the current year is line with expectations. Year-end cash on the balance sheet is expected to be in the region of £25million.

The revelation that Helical Bar’s flamboyant boss Mike Slade will retire in 2016 left the shares 10p lower at 450p.

Interim profits doubled to £85.9million on revenues 47 per cent higher at £58.3million and net rental income increased 22 per cent to £20million. 

It achieved a £42.3million net gain on the valuation of its properties in the period to end-September.