Dechra says no plans for further acquisitions
STAFFORDSHIRE based Dechra Pharmaceuticals has no plans to make any further acquisitions following its £40m purchase of US veterinary preparations company DermaPet, its chief executive has told TheBusinessDesk.com.
Speaking at Dechra’s Dales Pharmaceuticals base in Skipton, North Yorkshire, chief executive Ian Page said the deal for the Florida-based business allowed the group to increase margins in the US, a territory it is already active in.
And Mr Page said that despite the economic downturn, Dechra, which is a veterinary and human drugs specialist, was pleased with its performance.
He said: “There’s not many companies out there producing 15% growth per share. We are in challenging markets – there’s no doubt about that – particularly in our services business.
“But we’re fortunate that most of our products treat illness rather than them being ‘nice to have products’.
“Animals continue to be treated and we’ve got a lot of products at their early stage of market evolution which is encouraging.”
Mr Page said Dechra was delighted with the DermaPets deal. DermaPets develops and markets a range of dermatological preparations, including shampoos, conditioners and ear products, for the US and overseas pet markets. The products are marketed and distributed through the same channels as Dechra’s current US product portfolio.
“The primary objective (for completing the deal) was to make a step change of the size and scale and capability of the US business,” he added.
Mr Page said Dechra could raise money for further acquisitions if it needed to but had no plans to pursue any further strategic purchases.
Dechra today issued its interim management statement for the period from July 1 and said the group had started the financial year in line with management expectations with revenue in the first quarter 3.6% ahead of last year.
It said its European pharmaceuticals operation had continued to make good progress with first quarter revenue 4.9% higher than the equivalent period last year with all key products showing growth.
Since the year end the product development pipeline at the group has continued to deliver results, it said, with Vetoryl, its treatment for canine Cushing’s Disease, receiving approval in Japan. Equidone, Dechra’s specialist equine product for fescue toxicity, has been approved by the FDA and both products will be marketed in their respective countries in the first half of 2011.
Stoke-based Dechra, which employs around 200 people at its Dales business, which is the manufacturing division of the group, saw revenue climb from £350m to £369.4m for the year to June 30, while adjusted operating profit increased by 12.9% to £28.2m, compared with £25m in 2009.
Dechra has two divisions: pharmaceuticals, which manufactures, develops and markets licensed branded pharmaceuticals to the veterinary and human markets, and services, which focuses on the UK distribution of veterinary products and provides diagnostic laboratory services.
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