Mawdsley strong despite big pharma cutbacks
PHARMACEUTICAL wholesaler and distributer Mawdsley-Brooks & Company has reported its seventh successive year of increased profits to £3.6m, despite big pharma cutting distributor numbers.
The Salford-based company reported a 19% increase in pre-tax profits to £3.61m for the year to the end of March 2009 (2008: £3.03m).
Turnover increased by 4% to £302m, while operating profit increased to £4.76m from £4.38m a year earlier.
The company said it had been affected by a growing trend for the major pharmaceuticals, including Pfizer, Novartis, AstaZeneca and Glaxo, to cut down on the number of distributors they use, which it thinks will continue into 2010.
Chairman David Taylor said: “It is evident that there is no benefit for Pharmacists with these new systems – indeed there appears to be considerable aggravation with the complexity and multiplicity of these arrangements.
“Although the group provides systems to help pharmacists navigate these changing distribution systems, the turnover from them is no longer available to the group and this makes the performance for the year even more creditable.”
Staff numbers increased during the year by 36 to 717, which meant staff costs increased to £ 17m from £13m a year earlier.
In March 2009, the company bought Glasgow-based Eclipse Generics for £296,000, with a period of contingent consideration running until March 2011. Since the year end, Mawdsley has also bought Midlands-based National Generics.
Mr Taylor said that by expanding its share of the generics market the group would be well placed to take advantage of the growing usage of generic drugs.
The company has also announced that Mr Taylor will retire as chairman after nine year, with effect from October. Dr John Mawdsley, a member of the family, will take up the role of non-executive chairman from that date.
“His experience and knowledge of the industry will place him in good stead and i am confident he will enhance the group’s leading position in the industry,” said Mr Taylor.
