Dechra® Pharmaceuticals PLC Trading Update

LONDON, January 17, 2017 /PRNewswire/ --

International specialist veterinary pharmaceuticals and related products business, Dechra Pharmaceuticals PLC (Dechra or the Company) (Stock Code: Full Listing (Pharmaceuticals): DPH) issues the following unaudited Trading Update covering the half year reporting period (the Period) from 1st July to 31st December 2016.

Highlights 

- Reported Group revenue for the Period increased by approximately 34% at constant exchange rate (CER) (56% at actual exchange rate (AER)).

- Core Group revenue growth, excluding the benefit from acquisitions, was 7% at CER (AER 22%); growth in the core EU business was 6% at CER (AER 20%), and 10% (AER 31%) in North America.

- All acquisition integrations are progressing well with revenue contributions from Genera, Putney, Apex and Brovel being ahead of the Board's expectations.

- Approval by the FDA was achieved for the first major product from the Putney pipeline, a Companion Animal Product (CAP) generic antibiotic, Amoxi-clav.

Ian Page, Chief Executive Officer, said: 

"Our underlying business and acquisitions have performed well, resulting in significant growth in the first half of the 2017 financial year. The Group pipeline has delivered new products and our global presence continues to increase. We remain confident in our strategy, our future prospects and our expectations for full year performance." 

Operational Review 

European Pharmaceuticals 

In the Period our European Pharmaceuticals segment increased total reported revenues by 12% at CER (29% at AER). This was driven by contributions from both the Genera and Apex acquisitions (Rest of the World sales are reported in our EU segment) and from a strong CAP and Equine performance. Diet sales returned to modest growth in the Period following two years of decline as we changed manufacturer and reformulated the range. Revenue from Food Animal producing Products (FAP) also showed limited growth in the Period which was constrained by the planned reduced production in our injectable antibiotics suite which was undergoing modifications.

North American Pharmaceuticals 

Total reported North American segment revenue increased by approximately 112% at CER on the same period last year (152% at AER). The US business growth includes an uplift in sales from the stocking of the North American distribution chain with products from the acquired Putney business. Sales of the Putney products have also benefited post integration from the sales and marketing efforts of the enlarged Dechra team. Both our CAP and Equine portfolios performed well in the Period.

Pipeline Delivery 

As announced on 9 September 2016, we received FDA approval for a generic antibiotic Amoxi-clav during the Period. This product was the first major approval from the Putney pipeline following the acquisition.

Pipeline delivery continued with the approval of Altidox^®, a new FAP generic water soluble antibiotic, in 13 EU territories. Osphos^®, our unique equine lameness product, received approvals in Canada and Australia. Successful registrations were also gained from the Genera pipeline including Genoxytab-F, a FAP uterine antibiotic, in four EU territories, and Canihelmin, a CAP dewormer, in six EU territories. Apex Laboratories received Australian approval for a liquid formulation of benazepril, a CAP cardiac medication.

Notice of Results 

Dechra's half year financial results will be announced on Monday 27 February 2017.

For more information, please visit: http://www.dechra.com.

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