Dechra® Pharmaceuticals PLC: Trading Update
LONDON, October 23, 2015 /PRNewswire/ --
Dechra® Pharmaceuticals PLC
(Dechra or the Company)
international specialists in veterinary pharmaceuticals and related products
Trading Update
The Board of Dechra (Stock code: DPH) issues the following unaudited Trading Update covering the period from 1 July 2015 to the date of this announcement. The financial reporting period covers the first quarter to 30 September 2015.
Trading Update
Group revenue for the first quarter increased by approximately 21% at constant exchange rate (CER) (13% at actual exchange rate (AER)). This performance was driven by a strong momentum in all business units, the phasing of sales in advance of regional price increases and the contribution from our new subsidiaries.
European Pharmaceuticals
In the first quarter, our European Pharmaceuticals Segment increased revenues by 11% at CER (0% at AER).
The growth was driven by Companion Animal Products (CAP) which were ahead of our expectations. Whilst it is still early in the financial year, we saw some solid trading in Food producing Animal Products (FAP) but Diet sales declined. Our new Polish subsidiary, which commenced trading in May 2015, performed strongly in the period.
North American Pharmaceuticals
Total reported North American revenue increased by approximately 86% at CER on the same period last year (92% at AER) as our dermatology, endocrinology and ophthalmic ranges started the year strongly. Canada also contributed to the quarter-on-quarter growth as it only started trading in the second half of our 2015 financial year.
Sales of our Dermapet® range reached the US$20m MAT threshold in August 2015, which triggered the final milestone payment of US$5m committed to in the 2010 acquisition agreement.
Pipeline Delivery
Zycortal®, a novel canine endocrine product for the treatment of Addison's disease, received EU approval in September 2015. We are now preparing for a phased launch in all European markets throughout the remainder of the financial year. The complete dossier is also under review by the FDA for approval in the USA.
Osphos®, indicated for the treatment of navicular syndrome, is gaining market share in the USA and we expect to launch in EU territories before the end of 2015.
Acquisition
As announced on 21 October 2015, our offer to acquire shares of Genera has been successful. Dechra now owns 1,549,417 shares in Genera, amounting to 92.26% of the voting rights (83.99% of the share capital) of Genera. http://www.genera.hr
To date, the aggregate cost of acquiring the 92.26% controlling interest in Genera has been €36.6 million which has been funded from our existing cash and debt facilities.
This strategic acquisition gives us an entry point into the fast growing poultry vaccines market and will broaden our EU FAP business. We welcome everyone at Genera into the Dechra group and look forward to working together as we integrate the business.
In the period we also entered into an agreement with Central Sales Limited in Canada to acquire the intellectual property of HY-50®, an equine lameness product, for CAN$750,000. We already owned the trademarks and rights for HY-50 in other countries and now have control of the brand worldwide. This in-licensing deal will help strengthen Dechra's equine portfolio in Canada and will complement the recent launch of Osphos.
Enquiries:
Dechra Pharmaceuticals PLC
Ian Page, Chief Executive Officer
Anne-Francoise Nesmes, Chief Financial Officer
e-mail: corporate.enquiries@dechra.com
Tel: +44-(0)-1606-814-730
TooleyStreet Communications Ltd
Fiona Tooley, Director
e-mail: fiona@tooleystreet.com
Tel: +44-(0)-7785-703-523
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