6 Jul 2017 07:00
Thursday 6 July 2017
Dechra® Pharmaceuticals PLC
(Dechra, Group or Company)
Trading Update
The Board of Dechra issues the following unaudited Trading Update for the Group's financial year ended 30 June 2017 (Period) ahead of its preliminary financial results which will be announced on Monday 4 September 2017.
Highlights
· Trading in the full year was strong and in line with management expectations, with a good performance from the core business complemented by the successful integration and performance of acquisitions.
· Reported Group revenue for the Period increased by c.28% at constant exchange rate (CER) (c.45% at actual exchange rate (AER)).
· European Pharmaceuticals revenue growth was c.7% at CER (AER c.20%).
· North America Pharmaceuticals revenue growth was c.93% at CER (AER c.125%).
· Numerous product registrations have been achieved during the year, including approval by the FDA for the first major product from the Putney pipeline, a Companion Animal Product (CAP) generic antibiotic, Amoxi-clav.
Ian Page, Chief Executive Officer, said:
"As we complete our 20th year since the inception of Dechra, we are pleased to report that the Group has delivered another strong financial performance. This has been driven by growth from our core portfolio, good market penetration from recent pipeline launches and the successful integration and performance of the acquisitions made in the preceding financial year. We start the new financial year in a good position."
Operational Review
European Pharmaceuticals
Our European Pharmaceuticals Segment increased reported revenues by c.7% at CER (c. 20% at AER). Excluding third party contract manufacturing, which is being reduced in line with our strategic plan and replaced with own product manufacturing, revenues increased by c.9% at CER (c.23% at AER). This was driven by strong performance from the core CAP business, and by strong contributions from both the Genera and Apex1 acquisitions. Revenue from Food producing Animal Products (FAP) enjoyed a second successive year of growth despite the ongoing pressure to reduce antibiotic prescriptions.
North American Pharmaceuticals
The North American Segment revenue increased by approximately c.93% at CER (c.125% at AER). This revenue growth includes a good performance from our core CAP and Equine portfolios, in both the US and Canada. From our acquisitions, the Putney products delivered a strong performance, benefitting from integration of the sales and marketing efforts of the enlarged Dechra team; Mexico also delivered good growth.
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.
Several other products received approval in numerous countries including Mexico, Australia, South Korea, Thailand, Canada, and across the EU.
Acquisitions
As previously announced, in September 2016 the Group acquired Apex Laboratories Pty Ltd. The business has been successfully integrated and is performing well. In March 2017, the Group signed a long term licensing agreement with Animal Ethics Pty Ltd. (Animal Ethics) for Tri-Solfen®, and acquired 33% of the parent company Medical Ethics Pty Ltd. The Company is working successfully with Animal Ethics to obtain product registrations for Tri-Solfen®.
Notice of Results
Dechra's full year preliminary financial results will be announced on Monday 4 September 2017.
Enquiries: | |
Dechra Pharmaceuticals PLC | Office: +44 (0) 1606 814 730 |
Ian Page, Chief Executive Officer | |
Richard Cotton, Chief Financial Officer e-mail: corporate.enquiries@dechra.com | |
TooleyStreet Communications Ltd | |
Fiona Tooley, Director e-mail: fiona@tooleystreet.com | Office: +44 (0) 121 309 0099 Mobile: +44 (0) 7785 703 523 |
Notes:
1) 1 International sales excluding North America are reported in our European Pharmaceuticals Segment
2) Foreign Exchange Rates:
FY2017 Average: EUR 1.1681: GBP 1.0; USD 1.2735: GBP 1.0
FY2017 Closing: EUR 1.1372: GBP 1.0; USD1.2978: GBP 1.0
FY2016 Average: EUR 1.3472: GBP 1.0; USD 1.4906: GBP 1.0
FY2016 Closing: EUR 1.2099: GBP 1.0; USD 1.3433: GBP 1.0
3) Analysts' revenue forecasts for FY2017 range from £339.6m to £383.4m, with consensus at £356.2m
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 Statements
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.