Sales up at veterinary pharmaceutical firm Dechra

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Veterinary drug producer Dechra saw a 21 per cent rise in first-quarter revenue, boosted by its Canadian and Polish subsidiaries.

The firm, which has manufacturing operations in Skipton, said the increase - which dropped to 13 per cent when taking currency fluctuations into account - was driven by particularly strong performance in the North American market and by demand for its Companion Animal Products.

Revenue in North America increased by around 86 per cent at constant exchange rate (CER) compared to the same period last year, rising to 92 per cent at actual exchange rate (AER).

Its Canadian operations contributed to the quarter-on-quarter growth, having started trading in the second half of Dechra’s 2015 financial year.

Sales in its European Pharmaceuticals Segment increased by 11 per cent at constant exchange rate (CER), despite declining demand for its diet products.

Dechra’s Polish subsidiary, which commenced trading in May, performed strongly in the three month period to September 30.

The update - which follows its full-year results last month - also confirmed Dechra has continued its acquisition activity and has effectively taken control of Croatian pharmaceutical company Genera.

Analysts responded positively to the news, with Investec restating its ‘buy’ recommendation.

Panmure Gordon analyst Dr Mike Mitchell said Dechra should be considered “a core holding”.

He said: “If we look back over Dechra’s growth trajectory over the last ten years or so, we see a business that has developed with a strong focus on pipeline development, strategic M&A, and delivery.

“In our view this is a defensively positioned business that has demonstrated the value in the veterinary pharmaceutical space.”