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North America boosts Dechra performance in H1

Jan 09, 2018 - Animal Pharm
By Malcolm Flanagan
Animal Pharm
January 9, 2018

The UK's leading animal health company Dechra Pharmaceuticals has reported strong revenue growth for the past six months. 

In a trading update, the Cheshire-based firm said expanding H1 sales in North America increased group revenues by a solid 10% at constant exchange rates. At actual exchange rates, sales improved by 11.5%.

The company, which has been highly acquisitive in recent years, said the six-month period ending December 31 saw turnover in North America rise by 20%. In 2016, Dechra purchased generic companion animal pharmaceutical company Putney and its results have benefitted substantially since then.

Dechra's European performance was less impressive. However, the business still reported a healthy improvement of 5.5%.

In 2016, Dechra purchased Genera, Croatia's largest veterinary medicines business, as it expanded its geographical reach.

The latest H1 results from Dechra come on the back of recent strategic acquisitions in North America, Europe and Australia. In fiscal 2017, Dechra produced sales growth of 27% rise at constant exchange rates. The firm also reported a 45% upturn in annual revenues when factoring in recent acquisitions. The company garnered £359.3 million ($465 million) worth of sales for the year. Underlying profit rose by 37% year-on-year to £81.3m.

Dechra will announce its full interim results for the current H1 period on February 26.

RxVet deal completed

The company also reported its recent bolt-on acquisition of RxVet in New Zealand is now completed.

"RxVet has been Dechra's New Zealand distributor since 2010. The former managers will remain with the business and help to increase market share and build Dechra's presence in the Australasian region," said Dechra.

New product registrations were also achieved in H1 In Europe, Avishield IB H120 became the Dechra's second registered poultry vaccine in the EU. The company added that a number of minor registrations were also achieved in its recently-created international division.

In North America, Dechra has now launched all the dosage sizes of Amoxi-Clav tablets (indicated against bacterial infections) in the US, and Vetoryl (a treatment for Cushing's syndrome in horses) and Osphos (lameness in horses) in Mexico.

In 2017, the company celebrated 20 years existence and enjoyed its highest share price since its formation. In December last year, Animal Pharm gave a full breakdown of the company's trading performance and pipeline – and the likelihood of it heading for a top 10 position in the global animal health sector.

Reprinted with permission of Animal Pharm News




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