Speciality pharmaceutical group Alliance Pharma saw the value of its stock swell after unveiling plans to buy certain chunks of Cambridge Laboratories for between £14.3 million and £16.4 million.

The move will see Alliance gain access to 18 prescription products covering various therapeutic areas, such as ImmuCyst, an immunotherapy for superficial bladder cancer, and procarbazine for Hodgkin’s Lymphoma.

But the group has only bought the operations of Cambridge Labs’ associated with trading, i.e. its sales and administration divisions, and has not purchased anything linked with its development business, Alliance chief John Dawson told the Financial Times.

Under the terms of the deal, Cambridge Labs’ offices in Dublin, Ireland, and Newcastle, including around 30 staff, will transfer to Alliance, but the company said it plans to incorporate incoming support functions into its existing offices in Chippenham, Wiltshire, which could put about 25 jobs at risk of redundancy.

The acquisition, which will be funded by its existing credit facility and a share placing, is expected to close on February 22, and be “significantly earnings enhancing” to Alliance in the financial year ending December 31, 2010, the firm said.