Dechra boosts trade in second half

Pet drugs firm Dechra Pharmaceuticals said trade during the second half of 2010 was almost four per cent above the previous year.

The group, which has its Dales Pharmaceuticals plant in Skipton, where it makes drugs for pets and humans, was boosted by the acquisitions of DermaPet and Genitrix.

Dechra said the integration of both businesses was proceeding to plan.

The group saw revenue for the six months to December 31 rise 3.9 per cent compared to the previous year.

Stronger European trading saw revenue growth of approximately 5.6 per cent compared to the same period in 2009, with all key products showing growth.

Its operations in the United States were also better than the previous year with revenues up 18.7 per cent.

The firm said previously reported supply issues with ophthalmic and otic products had been offset by revenues from DermaPet and increased sales of Vetoryl.

Progress continues to be made on new product development and the group said three new novel pharmaceutical products were currently being evaluated, two of which have patent protection.

Revenue from services was up three per cent and it said cost control had enabled margins to be substantially held during a period in which trading had been, as expected, highly competitive.

The company said: "The trading performance of the group has continued to be resilient in testing economic conditions.

"The two acquisitions made during the period are in line with our strategy to develop our international veterinary pharmaceuticals business. They have increased the group's product portfolio, particularly in the US where, on the strength of the DermaPet acquisition, we have been able to significantly increase our sales and marketing capability."

"The board remains confident the group will continue to make positive progress throughout the remainder of the financial year."

Results for the six months to December 31, 2010 will be announced on February 22.