Dechra Pharmaceuticals Share Discussion Threads

[steeplejack] 25/5/2023 12:51

Purchased CFDs....looks like a bit of a punt by the KIO.

[tonysss13] 25/5/2023 12:28

looks like Kuwait investment fund bought 1% 3 days ago at 3167

[steeplejack] 22/5/2023 16:32

Yes,the management won’t be that keen if EQT try to bid them down due to destocking which could well prove to be but a temporary interruption to growth.Thereagain,Covid might come to be regarded as something of a ‘temporaryR17; one off benefit to profitability.Unless due diligence throws up something unexpected,my hunch is that EQT might follow through with its originally suggested £40-70p offer.It doesn’t have to answer to shareholders and EQT might well wish to have Ian Page’s unequivocal approval for the bid.The price has an all time high of around £55.Its a pure guess of course and the market seems to be leaning towards EQT walking away.

[phillis] 22/5/2023 16:17

BOD will find it v hard to deal below £40

Pipeline reduction doesn’t last that long

[1jat] 22/5/2023 09:01

Chances of a bid at £40 now receding, unless EQT and management see this as a temporary trading event.

If they do progress at that level, they can be confident of getting the deal done, unlike Apollo who could not convince Wood of the value of their bid.

It would not be surprising to see the bid fall to £38 or so…which is still a decent premium. £35 is going to be difficult for the Board to recommend, but if there is no bid then these will be £25.

[salpara111] 22/5/2023 08:51

There have been too many failed bids recently, just last week Apollo walked away from Wood Group.
I guess the question is would the board recommend a bid around the £35 level and would the major shareholders support it?

[steeplejack] 22/5/2023 08:13

So will EQT adjust its offer to reflect the tough trading conditions currently being encountered.The current price sits near halfway between the price before the bid emerged ie around £26 and the value of the cash bid of a tad over £40.I presume we'll know whether a bid will emerge by June 2,you can't keep kicking the can down the road.

[steeplejack] 10/5/2023 09:44

Yes an extension is quite likely if discussions are ongoing.

[phillis] 10/5/2023 09:31

Am not up to date with the rules
DPH could agree to an extension I think

[1jat] 09/5/2023 21:09

Slight decline suggests some uncertainty about EQT bid emerging…..certainly there is no counter bid emerging…

Of course there could be an extension on Thursday

[steeplejack] 09/5/2023 12:05

EQT has until 11th May ie Thursday to make a firm offer.

[spyder] 14/4/2023 09:04

EQT’s involvement with IVC (UK’s biggest vet consolidator) could cause some issues for them?

[steeplejack] 14/4/2023 08:39

The shares traded well over £50 eighteen months ago.All decent mid sized UK companies get snapped up over time.

[montyhedge] 13/4/2023 17:42

4070p bid not to bad.

[steeplejack] 28/2/2023 10:29

Analysts at Jefferies said they expected full-year operating profit to be about £188 million, versus £191 million previously.

[montyhedge] 27/2/2023 16:51

That's the problem with very high p.e companies. If they hit a bump in the road they get hammered.

[steeplejack] 27/2/2023 15:36

Indeed.I contemplated selling a few but i like the area in which this group operates.Veterniary products command excellent margins. I suppose a good few 'pandemic purchasing'dog owners are discovering that canines are more needy than stuffed toys but the investment case for holding a global company in this industry remains pretty compelling.

[vulgaris] 27/2/2023 13:55

Well, it has recovered half this morning's loss now.

[steeplejack] 27/2/2023 10:00

Trading patterns at the start of 2023 have been unpredictable in the US, where wholesalers have been reducing inventory levels. In the second half, we have re-commenced sales in South Korea, we expect an improving contribution from Med-Pharmex and will see the benefit of two recent new product launches, Zenalpha and Zycosan. Based on the recent US de-stocking and current exchange rates, the Board now expects full year underlying operating profit to be at the lower end of analyst expectations.This type of result could be the sort of reality check that moderates investor enthusiasm for equities in general in 2023.

[johnrxx99] 27/2/2023 09:27

I'll give it a year or two and look again
.

[steeplejack] 27/2/2023 08:52

Mr Page is always self congratulatory but these results seem at variance with the pretty upbeat trading update in January.The operating profit is a big miss on consensus forecasts and note that the flagship US market is expected to come in at the low end of estimates now.There are obvious explanations,acquisition integration costs,Korea marketing disruption,'cloud' expenses which might be 'ironed out' as the year progresses.However,overall,there's now a large dose of uncertainty about the outlook which the market had been mulling over.All the share gains made since the turn of the year have evaporated.

[prokartace] 27/2/2023 08:34

I think the share price agrees with you

[johnrxx99] 27/2/2023 07:20

The 6 month results look nasty. What do you think?

[steeplejack] 02/2/2023 08:23

Back through £30 to a three month high.Life in the old dog yet as no doubt they say in Dechra research laboratories.