Dechra wins horse deal

VETERINARY pharmaceuticals group Dechra, which has a major operation in Yorkshire, has secured the worldwide rights of a new drug used to treat lameness in horses in a deal worth more than £5m.

The agreement with Bexinc Ltd covers the rights to HY-50® everywhere but Canada.

The drug is currently approved and marketed by various companies in the UK, Belgium, Netherlands, Sweden, Finland, Denmark, Norway, Italy, Germany and Spain. Registrations are being prepared for France and Switzerland.

Dechra already markets the product in the UK as the marketing rights were acquired as part of the Genitrix acquisition, announced in December 2010.  Marketing rights for all other territories return to Dechra by July 2013. 
 
For the year ended February 28, 2011, HY-50 earned revenue of £1.4m ($2.2m) and operating income of £600,000 ($1m).  The deal is being funded from Dechra’s existing cash resources.

Ian Page, group chief executive, said: “This product acquisition further strengthens our specialist equine portfolio and will be earnings enhancing in the first full year of ownership.”