Business buys boost drugs company

PET drugs firm Dechra Pharmaceuticals yesterday reported an increase in revenues, boosted by the acquisition of two companies at the tail-end of last year.

Dechra, which has its Dales Pharmaceuticals plant in Skipton, where it makes drugs for pets and humans, said group revenues rose by four per cent in the six months to December 31.

The group has been strengthened by the acquisitions of Genitrix, on November 30, and DermaPet, on October 22, which have boosted the group's international veterinary pharmaceuticals business. It added that the integration of both businesses is proceeding to plan.

Dechra's European business grew by 5.6 per cent with all of its key products showing growth.

In the US, revenues rose by nearly 19 per cent. Supply issues with ophthalmic and otic products were offset by revenues from DermaPet and increased sales of its flagship Vetoryl drug, which treats Cushings disease in dogs.

Dechra said that progress continues to be made on its product development strategy. Three new pharmaceutical product opportunities are currently being evaluated, two of which have patent protection.

Revenue from this business rose three per cent over the half-year. It added that tight cost control has maintained margins during a highly competitive period.

Dechra said the group's trading performance has continued to be resilient in testing economic conditions. It added that it is confident it will continue to make positive progress throughout the remainder of the financial year

Dales has grown its contract manufacturing by 11 per cent, gaining more than 800,000 of new contract business. The plant has added 12 per cent in value per unit thanks to improved productivity.

It has taken manufacturing of Fuciderm, a gel to treat dogs' skin diseases, in-house at Dales. It also plans to transfer manufacturing of Canaural canine ear drops to Skipton.