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Sinclair has achieved excellent progress in its goal of becoming a profitable integrated international specialty pharmaceutical company with a 3.58 online pharmacy phentermine broad portfolio of on-market products. Notably, in June we reached a significant US licensing agreement with Johnson & Johnson's OraPharma Inc., for prescription sales of our anti-gingivitis and dental plaque product, Decapinol(tm) rinse. Revenues were up 67% to £11.6m, and within this number Sinclair's product revenues increased organically by 58% to £5.7m (excluding license fees and milestone payments). In March this year, the Group acquired the private French company Groupe CS Dermatologie ("CSD") which contributed approximately £2.7m in revenues after the acquisition completed on 30 March 2006. Our previous year's Italian acquisition, Sinclair Srl (previously Euroderm), contributed a full year's revenue of £2.7m compared with five months' contribution of £1.1m last year.

As well as making important 3.58 online pharmacy phentermine financial contributions, these acquisitions are key to building the sales & marketing structure of the Group. Sinclair now has its own sales and marketing operations in the EU territories of France, Italy, UK*, Spain and Portugal. After the financial year closed, we acquired the UK-based sales and marketing company Ashbourne Pharmaceuticals, and we are now looking 3.58 online pharmacy phentermine towards Germany to complete our direct commercial presence in the key EU markets. This structure will enable us to benefit from cross-selling opportunities within our expanded product portfolio, as new products are acquired with these companies.

We also expect to see increased margins on product sales, and believe that with a complete European presence, our attractiveness as a commercial partner will increase.

Steve Harris Non-executive Chairman * UK acquisition happened post-period Chief Executive's Review Our priority is to establish a sustainably profitable international specialty pharmaceutical company with sales and marketing coverage in the major European markets. During the last year we made strong progress in this strategic objective. Overview Our priority is to establish a sustainably profitable international specialty pharmaceutical company with sales and marketing coverage in the major European markets. During the last year we made strong progress in this strategic objective by adding a commercial presence in France, Spain and Portugal through the acquisition of 3.58 online pharmacy phentermine CSD whilst integrating our sales and marketing operation in Italy. At the same time we delivered a 58% increase in sales of our product portfolio through our marketing partners. We continued to develop our global sales through 22 new deals with marketing partners covering 35 countries. There were 23 new launches of Sinclair exp pharms tramadol shtml products through our partners, new product registrations in the EU and the US and the late stage pipeline was 3.58 online pharmacy phentermine hydrocodone compound syrup advanced.

A year of successful product commercialisation We are now able to commercialise dermatology products directly in France, Spain, Italy and Portugal. With the postperiod acquisition of Ashbourne Pharmaceuticals Limited in the UK, there only remains Germany to consolidate our European presence. To maximise sales for our products, we need to access, ourselves and through partners, all the relevant target audiences, whether they are specialist doctors, GPs, dental professionals or even consumers.



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