Dechra Pharmaceuticals gets year off to a good start with strong Q1
Dechra Pharmaceuticals has got its financial year off to a good start with a 6% increase in revenue during the first quarter, in line with expectations.
Dechra Pharmaceuticals
3,866.00p
08:01 16/01/24
It said, however, that the performance came against a soft period last time, which was adversely affected by the phasing of export orders and supply issues in the US.
The group also said it had decided to terminate the development of its feline endocrine drug, having previously suspended clinical trials.
"Overall, we remain confident that the execution of our strategy will continue to deliver growth," it said.
In Europe, pharmaceutical revenue climbed by 1% on a reported basis and 7% at constant currency, lifted by a 16% increase in sales of its companion animal products and a strong performance across all its home markets.
While equine and diet products performed strongly, this was partially offset by a 12% decline in its food producing animal products.
In the US, revenue jumped 51% on a reported basis and 61% at constant currency.
"The revenue growth in the period is attributable to the recent acquisition of Phycox, which we are pleased to report has performed in line with expectations, the launch of Osphos, and the re-launch of two opthalmic products following long term supply issues," it said.
"The performance has also been underpinned by continued strong trading of our key dermatology and endocrinology product ranges."
Oriel Securities rated the stock an 'add' and said the group had made a strong start to its financial year.