Trading Update and Notice of HY results

RNS Number : 0908C

Dechra Pharmaceuticals PLC

14 January 2015

 

Wednesday, 14 January 2015

Dechra^® Pharmaceuticals PLC

(Dechra or the Group)

Trading Update

The Board of Dechra is pleased to issue the following unaudited update ahead of the Group's half-year financial results for the period ended 31 December 2014, which will be announced on Monday, 23 February 2015.

Highlights

·      Group trading in the first half of our 2015 financial year was in line with management expectations for both revenue and operating profit.

·      Group revenue increased by approximately 12% at constant currency

(6% reported). This was against a soft comparator period in the prior year.

·      Good momentum has continued in Europe with sales growing at 7% at constant currency (0.5% reported).

·      Substantial sales growth of 59% at constant currency (54% reported) was delivered in the US following the successful launches of Phycox®, Osphos® and the Ophthalmic products and strong underlying growth of the existing portfolio.

·      A new differentiated generic farm animal antibiotic aerosol was approved in Europe during the period.

Ian Page, CEO, commented:

"The positive momentum experienced during the end of the last financial year has been maintained.  On the strength of our recent revenue growth, we will accelerate investment in our sales and marketing infrastructure, particularly in the US as we look to strengthen our market presence.  We remain confident that the execution of our strategy will continue to deliver future value."

Operational review

European Pharmaceuticals

In the first half, our European Pharmaceuticals Segment increased revenues by approximately 7% at constant currency (0.5% reported) on the same period last year.

Sales of Companion Animal Products (CAP) were ahead of our expectations with a strong performance across all our home markets.  Equine and Diet products also performed strongly.  However this was partially offset by a decline in our Food producing Animal Products (FAP), which continue to be impacted by the widely reported pressure on veterinarians to reduce antibiotic prescribing, particularly in Germany and the Netherlands.

US Pharmaceuticals

Total reported US revenue increased by approximately 59% at constant currency on the same period last year (54% reported).

The exceptional revenue growth in the first half was attributable to the acquisition of Phycox, the launch of Osphos in Q1 and the relaunch of two Ophthalmic products following the resolution of long term supply issues; all these products are performing in line with management expectations.  The performance has also been driven by continued strong trading of our key Dermatology and Endocrinology product ranges.

Geographic expansion

Our Canadian subsidiary commenced trading in January 2015.  This represents the latest milestone in our geographic expansion strategy.  The establishment of our own subsidiary in this market will deliver additional margin and should enhance growth in the future.

Pipeline delivery

In Q2 of this financial year we successfully obtained approval in all our European territories for TAF spray (thiamphenicol), a FAP differentiated generic antibiotic aerosol to treat superficial wound infections.

Summary

Following a solid first half performance and the continued execution of our strategy, Group trading for the 2015 financial year remains in line with management expectations.

Enquiries:
Dechra Pharmaceuticals PLC
Ian Page, Chief Executive Officer	Mobile: [phone]
Anne-Francoise Nesmes, Chief Financial Officer e-mail: [e-mail]	Mobile: [phone] Office:  [phone]
TooleyStreet Communications Ltd
Fiona Tooley, Director e-mail: [e-mail]	Office:  [phone] Mobile: [phone]

About Dechra

Dechra is an international specialist veterinary pharmaceuticals and relates products business.  Our expertise is in the development, manufacture and sales and marketing of high quality products exclusively for veterinarians worldwide.  Dechra's business is unique as the majority of its products are used to treat medical conditions for which there is no other effective solution or have a clinical or dosing advantage over competitor products.  For more information please visit: www.dechra.com.

Stock Code: Full Listing (Pharmaceuticals): DPH

Trademarks

Dechra and the Dechra "D" logo are registered trademarks of Dechra Pharmaceuticals PLC.

 

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