Dechra has issued an unaudited Trading Update covering the half year reporting period (the Period) from 1 July to 31 December 2016.
European Pharmaceuticals segment increased total reported revenues by 12% at CER (29% at AER), which was driven by contributions from both the Genera and Apex acquisitions (Rest of the World sales are reported in 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 the company 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 injectable antibiotics suite which was undergoing modifications, said the company.
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 CAP and Equine portfolios performed well in the Period, the company said about North American segment.
The Period includes FDA’s approval for a generic antibiotic Amoxi-clav. This product was the first major approval from the Putney pipeline following the acquisition, the company said.
Pipeline delivery continued with the approval of Altidox, a new FAP generic water soluble antibiotic, in 13 EU territories. Osphos received approvals in Canada and Australia. 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.
Ian Page, Chief Executive Officer, commented:
“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.”