Trading Update

Dechra Pharmaceuticals PLC
08 January 2007







Issued by Citigate Dewe Rogerson, Birmingham
Date: Monday, 8 January 2007
                                                               Embargoed: 7.00am

                           Dechra Pharmaceuticals PLC
                                 Trading Update

Dechra Pharmaceuticals PLC ('the Group') issues the following update ahead of
publication of the Group's Interim Results for the six months ended 31 December
2006, which are scheduled to be announced on Tuesday 27 February 2007.

Current Trading

The Group continues to make substantial progress across all its businesses and
this is reflected in a total revenue increase of approximately 8.5% compared to
the same period last year.

Product Development

The ongoing development of the Group's international veterinary pharmaceutical
portfolio remains important to our future growth:-

•   Equidone(R)
      - Prior to the half year end, we announced that we had acquired the intellectual
        property for Equidone(R), an equine product, which is at an advanced stage of
        development for the US market.

•   Vetoryl(R)
      - Within the USA, efficacy trials for Vetoryl(R) are running to
        schedule, the manufacturing dossier has been submitted and the safety section is
        due to be filed with the FDA this month. The Board remains confident that the
        product will be launched in-line with our planned programme.

      - Within Europe, revenues are already exceeding budgets and this bodes
        well for our 2007 roll-out programme into new territories including Spain,
        Portugal and the Nordics.

•   Generics
      - The Group has also secured the UK marketing rights for four new generic
        products for the equine and small animal market sectors. Following submission
        and regulatory approval, the Board expects the first of these products to be
        launched within this financial year, with the others anticipated to be licenced
        by the end of 2007.


continued...

                                      -2-

Pharmaceuticals Division Update

Dechra Veterinary Products continues to benefit from solid growth from its own
branded pharmaceuticals within the UK.

Dales gained a significant new third-party manufacturing contract towards the
end of our previous financial year. The Board is pleased to report that
manufacturing for this contract has commenced ahead of schedule.

Revenues from Arnolds, our instruments, consumables, critical care and equipment
business, have performed in-line with our expectations.

Services Division Update

NVS continues to hold its leading market position. During the last financial
year, the company invested over £700,000 in additional automation and capacity
within its facilities. The Board is pleased to report that the additional
warehousing and semi-automated picking circuit is now fully commissioned. This
has enhanced the company's productivity and overall operational efficiency.

The Group's Laboratories businesses are continuing to increase market share. To
accelerate this growth the company has established a new satellite laboratory in
Swanscombe. This presence in Southern England has increased opportunities for
growth, which has been demonstrated by a number of new account wins secured
prior to the period end.

Conclusion

The Directors remain confident that the Group will continue to make good
progress and achieve a strong overall performance for the financial year ending
30 June 2007, in line with management expectations. We look forward to updating
shareholders of further developments as and when appropriate.





Enquiries:
Ian Page, Chief Executive                Fiona Tooley, Director
Simon Evans, Group Finance Director      Katie Dale, Senior Account Manager
Dechra Pharmaceuticals PLC               Citigate Dewe Rogerson
Telephone: [phone]                 Telephone: [phone]
www.dechra.com





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