Dechra Pharmaceuticals PLC Trading Update (3016U)

TIDMDPH

RNS Number : 3016U

Dechra Pharmaceuticals PLC

17 January 2017

Tuesday, 17 January 2017

Dechra(R) Pharmaceuticals PLC

("Dechra" or "the Company")

Trading Update

The Board of Dechra issues the following unaudited Trading Update covering the half year reporting period (the Period) from 1 July to 31 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(R) , a new FAP generic water soluble antibiotic, in 13 EU territories. Osphos(R) , 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.

 
 
   Enquiries: 
 Dechra Pharmaceuticals PLC 
 Ian Page, Chief Executive Officer         Mobile: [phone] 
                                            642 222 
 Richard Cotton, Chief Financial           Mobile: [phone] 
  Officer                                   828 318 
  e-mail: [e-mail]    Office: +44 (0) 1606 
                                            814 730 
 
 TooleyStreet Communications 
  Ltd 
 Fiona Tooley, Director                    Office: +44 (0) 121 
  e-mail: [e-mail]            309 0099 
                                            Mobile: [phone] 
                                            703 523 
 

Notes:

1) Foreign Exchange Rates:

FY2017 H1 Closing: EUR 1.1680: GBP 1.0; USD1.2311: GBP 1.0

FY2017 H1 Average: EUR 1.1698: GBP 1.0; USD 1.2886: GBP 1.0

FY2016 H1 Average: EUR 1.3942: GBP 1.0; USD 1.5376: GBP 1.0

FY2016 Average: EUR 1.3432: GBP 1.0; USD 1.4870: GBP 1.0

About Dechra

Dechra is an international specialist veterinary pharmaceuticals and related products business. Our expertise is in the development, manufacture, and sales and marketing of high quality products exclusively for veterinarians worldwide. The majority of Dechra's products are focused on key therapeutic categories where we have leading market positions, and many of our products are used to treat medical conditions for which there is no other effective solution or have a clinical or dosing advantage over competitor products. For more information, please visit: www.dechra.com.

Stock Code: Full Listing (Pharmaceuticals): DPH

Trademarks

Dechra and the Dechra "D" logo are registered trademarks of Dechra Pharmaceuticals PLC.

Forward Looking Statement

This document may contain certain forward-looking statements. The forward-looking statements reflect the knowledge and information available to the Company during the preparation and up to the publication of this document. By their very nature, these statements depend upon circumstances and relate to events that may occur in the future thereby involve a degree of uncertainty. Therefore, nothing in this document should be construed as a profit forecast by the Company.

Market Abuse Regulation (MAR)

The information contained within this announcement may contain inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 17, 2017 02:00 ET (07:00 GMT)