Drugs group Dechra strengthened by acquisitions

ANIMAL pharmaceuticals group Dechra has predicted good half-year results based on the performance of new acquisitions and the strength of the core business.

In a trading update, the company said reported group revenue for the period July 1 to December 31, 2016 had increased by approximately 34% at constant exchange rate (CER) (56% at actual exchange rate (AER)).

Core group revenue growth, excluding the benefit from acquisitions, was 7% at CER (AER 22%); growth in the core EU business was 6% at CER (AER 20%), and 10% (AER 31%) in North America.

The group, which has a large operation in Shrewsbury, said the integration of all its acquisitions was progressing well and revenue contributions from Genera, Putney, Apex and Brovel were ahead of the board’s expectations.

It also said that approval by the Federal Drugs Administration (FDA) for the first major product from the Putney pipeline, a Companion Animal Product (CAP) generic antibiotic, Amoxi-clav, was expected to boost business.
 
Ian Page, CEO, Dechra, said: “Our underlying business and acquisitions have performed well, resulting in significant growth in the first half of the 2017 financial year.  The group pipeline has delivered new products and our global presence continues to increase. We remain confident in our strategy, our future prospects and our expectations for full year performance.”

Dechra’s half year results will be announced on Monday February 27, 2017.

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