Dechra enjoys strong second half on acquisitions
PHARMACEUTICAL group Dechra has said trade during the second six months of 2010 was almost 4% above the previous year.
The Staffordshire-based was strengthened during the period by the £40m acquisition of Florida-based DermaPet in October and then Genitrix the following month.
Dechra said the integration of both businesses was proceeding to plan.
The group, which saw revenue for the six months to December 31 rise 3.9% on 2009, was also buoyed by stronger European trading which saw revenue growth of approximately 5.6% compared to the same period in 2009, with all key products showing growth.
Its operations in the United States were also better than the previous year with revenues up 18.7%.
The firm said previously reported supply issues with ophthalmic and otic products had been offset by revenues from DermaPet and increased sales of Vetoryl®.
Progress continues to be made on new product development and the group said three new novel pharmaceutical products were currently being evaluated, two of which have patent protection.
Revenue from Services was up 3% on the equivalent period in 2009 and it said cost control had enabled margins to be substantially held during a period in which trading had been, as expected, highly competitive.
In a statement, the firm said: “The trading performance of the group has continued to be resilient in testing economic conditions.
“The two acquisitions made during the period are in line with our strategy to develop our international veterinary pharmaceuticals business. They have increased the group’s product portfolio, particularly in the US where, on the strength of the DermaPet acquisition, we have been able to significantly increase our sales and marketing capability.
“The board remains confident the group will continue to make positive progress throughout the remainder of the financial year.”
Results for the six months to December 31, 2010 will be announced on February 22.
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