Media Coverage

Dechra heads towards top 10 as pipeline signifies growing food animal influence


Dec 04, 2017 - Animal Pharm
By Joseph Harvey
Animal Pharm
December 4, 2017

This year, Dechra Pharmaceuticals celebrated its 20th birthday. The previous two decades have seen the firm stimulate its turnover – and share price – with a combination of acquisitions and organic growth. Animal Pharm editor Joseph Harvey takes a look at what the coming years hold for the leading UK-based animal health company.

Dechra Pharmaceuticals has recently witnessed a big spike in its share price, which is now valued at its highest point during the company's 17-year history as a listed entity.

The firm has been trading at more than 2,000p ($26.50) per share on the London Stock Exchange for over two months now, according to the Animal Pharm Stock Tracker. At the end of November, the firm's shares reached an all-time high of 2,249p each.

Dechra has been a listed company since 2000. Over the last 17 years, the firm's share valuation has increased exponentially.

The most recent upturn in its share price followed an extremely healthy full-year 2017 financial report, which saw revenues improve year-on-year by 45%.

Dechra's annual sales are now around 14 times larger than they were a decade ago. A series of acquisitions has helped the company grow in several nations around the world. According to Dechra, it has also identified potential future targets for further M&A.

In fiscal 2017, Dechra reported revenues of £359.30 million ($475.6 million). While it was 14th in Animal Pharm's industry rankings for 2016, next year the company may well find itself in 10th position. The firm's ranking will not only be aided by its sturdy growth projector but also by newly-acquired Merial's absence from the league table next year.

While products for companion animals currently dominate Dechra's portfolio, the company's pipeline suggests it is aiming to increase its offering in the food animal space.

Dechra's pipeline is focused on endocrinology, dermatology, ophthalmology, equine medicine, anesthesia, analgesia, cardiovascular disease, antibiotics for food-producing animals, poultry vaccines, pet diets and complementary generics.

The firm currently has 40 candidates in development. While the majority are for companion animals or horses (21), there are more candidates at the registration stage for food animals (eight; compared to four for companion animals/horses).

In fact, Dechra's most recent purchase was that of a stake in Animal Ethics – an Australian business developing products for the livestock pain market.

Reprinted with permission of Animal Pharm News

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