Product launches help to lift trading at Animalcare

The company told investors at its AGM at its head office at York Business Park that its new product development pipeline has been boosted by the launch of a better version of Phenoleptil, which stops dogs from having epileptic seizures.

Chairman James Lambert said the new version makes it easier to give dogs the right dosage.

Looking ahead, he said that preparations for the launch of two companion animal medicines in the coming months are at an advanced stage.

The group may launch another product in the second quarter, depending on how long it takes to develop the market for these other medicines.

“The board is pleased to report that trading in the first four months of the financial year is ahead of the prior year and in line with the board’s expectations,” said Mr Lambert.

Analyst Savvas Neophytou, at Panmure, said: “Investment in Animalcare allows investors access to large and fast growing markets which are relatively predictable and without much economic cycle volatility.

“The UK veterinary pharmaceutical market is worth some £565m, with Animalcare enjoying a 1.3 per cent market share.

“The group is at the start of its journey in changing its focus towards branded veterinary products, which should add significant operating leverage in due course.

“In our view, investors looking at Animalcare should look to Dechra as a yardstick of how the business may develop in coming years.”

At the end of September. Animalcare posted record sales and said it has returned to growth.

The group said it has seen an increase in sales despite a flat market.

Animalcare has been through a year of transition with a move to new premises and a new chief executive, Iain Menneer. Despite the upheaval, it said there had been no disruption to trading caused by the move.

The group said it has seen good sales of Vitofyllin, a new medicine that treats the symptoms of old age in dogs.

“In the last three years of a dog’s life, they can get disorientated, mess the house, start barking and become more lethargic,” said Mr Menneer.

“Some vets and owners think the dog is just getting old and it’s often undiagnosed, but Vitofyllin opens up the blood vessels and gives the dog a new lease of life.”

For the year to June 30, the group posted an 11.6 per cent rise in revenue to a record £12.1m.

Underlying operating profit increased by 17 per cent to £2.7m.

This was offset in part by an increase in administrative costs of £500,000 following additional staff costs of £300,000.