Dechra buys US animal joint supplement firm
DECHRA Pharmaceuticals, the veterinary pharmaceuticals business with its head office in Cheshire, has made an acquisition in the US.
It is buying the trade and assets of Florida company PSPC for up to $10m (£5.9m), and is in talks to buy its manufacturing facility too.
PSPC’s principal product is Phycox, a patented veterinary joint supplement for dogs and horses, currently achieving sales in North America of approximately $4.5m per annum.
Phycox competes in the US Veterinary joint health supplement market, a sector estimated at $55m. Additionally a new product in the final phase of development is anticipated to be launched in the first half of the next financial year (ending June 2015) and is expected to bolster Dechra’s endocrinology therapeutic category.
Decra said $8.5m of the fee is payable in cash on completion with the remaining $1.5m being paid upon the successful registration of the new product.
Chief executive Ian Page said: “We are confident that we can build upon the strong penetration Phycox has already achieved in a fragmented but growing market by leveraging Dechra’s established sales and marketing expertise behind Phycox which has had little historical marketing support.
“We are also very excited about the opportunity that the new product, already at an advanced stage of development, can deliver.”
The acquisition is expected to be completed by the end of June 2014.
