Interim Management Statement

RNS Number : 6679V

Dechra Pharmaceuticals PLC

05 November 2010

 



Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Friday, 5 November 2010

Dechra^® Pharmaceuticals PLC

Interim Management Statement

Dechra Pharmaceuticals PLC ("Dechra" or the "Group"), which holds its Annual General Meeting today at 3.00pm, publishes its Interim Management Statement covering the period from 1 July 2010 to the date of this announcement as required by the UK Listing Authority Disclosure and Transparency Rules.

The Group has started the financial year in line with management expectations with revenue in the first quarter 3.6% ahead of last year.  On 22 October 2010, Dechra acquired DermaPet Inc. for an initial cash consideration of US$42 million.  The Group also negotiated a total £78 million four year bank facility to replace all existing bank facilities.  Other than the foregoing, there have been no further material events or transactions during the relevant period and the financial position of the Group remains strong.

European Pharmaceuticals has continued to make good progress with first quarter revenue 4.9% higher than the equivalent period last year with all key products showing growth.

Revenue from US Pharmaceuticals was 16.9% below last year reflecting the supply issues with the dermatological, ophthalmic and otic ranges highlighted in the last Annual Report.  The Group has now taken full ownership of a number of these products and is in the process of transferring production to a new manufacturer.  Revenue from Vetoryl^® in the quarter increased by 54% to US$1.8 million.  Because of the higher Group margin for Vetoryl, profit for US Pharmaceuticals was higher than last year despite the lower revenue.

Since the year end the product development pipeline has continued to deliver results.  Vetoryl, our treatment for canine Cushing's Disease, has now received approval in Japan.  Equidone^®, our specialist equine product for fescue toxicity, has been approved by the FDA.  Both products will be marketed in their respective countries in the first half of 2011.

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The acquisition of DermaPet has further enhanced Dechra's presence and scale in the US.  The Directors believe this acquisition will be materially earnings enhancing in the first full year of ownership.

Services achieved first quarter revenue growth of 4.0%.  National Veterinary Services^® maintained its operating margin at the level achieved in the financial year ended 30 June 2010.

The Board remains confident that the Group will continue to make good strategic progress in line with management expectations throughout the remainder of the financial year.

Enquiries:
Ian Page, Chief Executive
Simon Evans, Group Finance Director	Fiona Tooley, Director
Dechra Pharmaceuticals PLC	Citigate Dewe Rogerson
Tel: [phone]	Tel: [phone]
Mobile: + 44 (0)7775 642222 (IP) or + 44 (0)7775 642220 (SE)	Mobile: + 44 (0)7785 703523
www.dechra.com
[e-mail]

Trademarks appear throughout this release in italics.  Dechra and the Dechra 'D' logo are registered Trademarks of Dechra Pharmaceuticals PLC.

Forward-Looking Statements

This document contains certain forward-looking statements.  The forward-looking statements reflect the knowledge and information available to the Company during the preparation and up to the publication of this document.  By their very nature, these statements depend upon circumstances and relate to events that may occur in the future thereby involving a degree of uncertainty.  Therefore, nothing in this document should be construed as a profit forecast by the Company.

 

END

 

 

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