Growth underpins strong year for drugs firm Dechra
STAFFORDSHIRE-based veterinary products supplier Dechra Pharmaceuticals has seen annual revenue and profits increase following a successful year underpinned by growth.
Part of the growth has been down to a series of strategic acquisitions and the launch of new products.
The annual results show full year revenue increasing 9.5% to £426m (2011: £389.2m), with underlying operating profit up 15% at £36.6m (2011: £31.8m).
In tandem with the full-year results, the company also announced today that it had secured a major new licensing agreement.
Dechra said it had entered into an exclusive license agreement with Scynexis Inc. for the development and commercialisation of SCY 641, used for the treatment of canine keratoconjunctivitis sicca (KCS).
Under the terms of the agreement, Dechra is granted worldwide animal health rights and will be responsible for the remaining clinical development and commercialisation of SCY-641. Scynexis has retained the human health rights to the compound.
Scynexis will receive an upfront fee from Dechra and is eligible to receive further payments based on development milestones, as well as royalties on product sales.
SCY-641, a cyclosporine derivative, is the first partnered compound from the Scynexis proprietary cyclophilin inhibitor platform, which includes SCY 635, a clinical candidate for the treatment of Hepatitis C (HCV).
Commenting on the partnership, Ian Page, Dechra chief executive, said: “We are delighted to have reached an agreement with Scynexis and look forward to a successful partnership and bringing SCY-641 to market.
“The worldwide agreement substantially strengthens our novel product development pipeline. The ophthalmic market is a key therapeutic sector for Dechra; the application of SCY-641 in the animal health market offers significantly improved clinical treatment of dry eye in animals and an excellent commercial opportunity.”
In its annual results statement, Dechra said 2011/12 had proved a year successful year for the business, with strong underlying growth.
“The underlying growth has been generated from a solid performance by our licensed veterinary pharmaceuticals across all our major brands. Good revenue growth was delivered in both our Services segment and from our third party manufacturing,” it said.
“Solid progress has also been made on our product pipeline. Furthermore, our UK based manufacturer, Dales Pharmaceuticals has achieved a significant milestone in gaining US Food and Drug Administration approval to manufacture Vetoryl for the US market.
“The (£113m) strategic acquisition of (Dutch firm) Eurovet Animal Health increases the strength and depth of the countries in which we trade; increases our manufacturing competencies; provides complementary companion animal products and introduces Dechra into the farm animal products sector.”
It said Eurovet would deliver significant synergies throughout the integration process and would be earnings enhancing in the first full year of ownership, leading to it becoming materially earnings enhancing by the financial year ending 30 June 2014.
The acquisition was funded by way of a fully subscribed Rights Issue and a new debt facility.
