Lawrence PLC
13 February 2006
13 February 2006
Lawrence plc
Eco Animal Health - Update on Registrations and Trading
Registrations
Lawrence is pleased to report that its Eco Animal Health (Eco) subsidiary has
received further registration approvals for Aivlosin and Ecomectin. Aivlosin is
its patented macrolide antibiotic for the prevention and treatment of
respiratory and digestive diseases in pigs and poultry. Ecomectin is an anti
parasite endectocide.
The latest Aivlosin approvals from The European Agency for the Evaluation of
Medicinal Products (EMEA) are for a low concentration feed premix and oral
powder, which will allow for the dosing of groups and individual pigs. This will
enable Eco to access the key swine markets of France, Germany, Netherlands and
Poland where close to half of Europe's pigs are produced. Eco will also be able
to sell this additional form of Aivlosin to improve penetration of other
European markets where Aivlosin high concentration formulation is already
available.
Eco was expecting to receive an EMEA opinion on Aivlosin in January covering the
treatment of ileitis in pigs and it was expecting an opinion covering the
treatment of dysentery in pigs in April. In addition Eco was expecting an
opinion on Ecomectin for pig injection. The EMEA has now advised Eco that it
intends to alter its timetable and will now hold a single hearing in mid March
covering both Aivlosin applications. The Ecomectin opinion is expected later in
the year.
In Japan, Eco has received product registrations for its Ecomectin pig premix,
which extends the Ecomectin range of injection and pour-on formulations.
Trading
The news from the EMEA is positive with a significant number of approvals
granted, although the revised timing for the balance will have the effect of
moving a number of opening orders, when the appropriate approvals are granted,
from the end of the current financial year into the next financial year. The
Interim Report indicated that Eco's budget for the current year was based on
delivering opening Aivlosin orders resulting from all the approvals described
above.
Accordingly the Board expects that revenues for the current financial year will
be behind market expectations principally as a result of lower than expected
sales of higher margin products in Europe. Therefore overall gross margins will
be lower than anticipated and accordingly profits before tax for the period will
be significantly below expectations.
Overall Eco's business continues to expand rapidly. The Lawrence Interim Report
indicated that Eco's sales in the first half were thirty per cent above the
equivalent period in the previous year. The second half has seen an accelerating
trend and Eco's cumulative sales for the first ten months of the current year
are over fifty per cent ahead of the previous year. This augurs well for the
continued strong growth of Lawrence's animal health business.
Contacts:
Peter Lawrence
Chairman, Lawrence plc
020 8336 2900
Anthony Spiro
Spiro Financial
020 8949 0428
Philip Davies
Charles Stanley Securities
020 7953 2457
Notes to Editors:
Lawrence plc is a leader in the development, manufacture and distribution of
principally specialist chemical and pharmaceutical products for the animal
health and farming markets worldwide. Our products for these growth markets
incorporate natural ingredients to promote well being and sustainability. We
achieve our financial goals through the careful and responsible application of
science to generate value for our shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange AEFAKKEFE
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