Pharmaceuticals group Dechra enjoys strong H1

PHARMACEUTICAL group Dechra has announced improved half year results set against soft comparisons for the corresponding period last year.

Revenue increased to £100.9m, a growth of 11.4% at constant exchange rates (5.2% at actual exchange rates), which the company said reflected the strength and diversity of its product offering.

The group – which has a large operation in Shrewsbury – said its CAP and Equine portfolio performed well in all European countries and in the US, while it was pleased that the momentum of its Vetoryl product improved as expected. Sales in the US saw growth of 60.6% at CER (55.6% at AER).

Its focus therapeutic areas of endocrinology and dermatology grew by 20% and 23% respectively but in contrast, FAP sales were impacted by the continued decline of the use of antibiotics in the EU.

Third party contract manufacturing revenues were said to have remained robust, while its Specific pet diets sales were temporarily affected in December 2014 by the transfer of production to a new external supplier.

Ian Page, Dechra CEO, said: “The group has made a solid start to the year with continued momentum in Europe and a strong performance in the US. Our focus on executing our strategy is delivering value to shareholders. Our core portfolio demonstrates growth, our product pipeline is delivering results and our global expansion is progressing well.”

Reported gross margin across the six months to December 2014 remained flat at 56.4%. However, it said that excluding last year’s benefit of the one-off adjustment for deferred profit in stock following the divestment of the Services Segment, margin improved by almost 1% due to product mix and savings being realised from the transfer of the diets range to a new supplier.

“We continue to invest in our infrastructure to support our strategic ambitions. Selling, general and administrative expenses increased from £36.7m to £39.6m as we support the launch of Osphos and establish an infrastructure in our new subsidiaries as well as strengthen corporate functions. R&D expenses remained in line with last year commensurate with the current status of our development programme,” it added.