Dechra buys US pet drugs firm for £26m

It said the deal enhances its presence and scale in the US, and is likely to be earnings enhancing in the first full year of ownership.

The group, which has its Dales Pharmaceuticals plant in Skipton making drugs for pets and humans, added it has started its new financial year well and in line with its expectations, with first quarter sales up 3.6 per cent.

Dechra added it has negotiated a 78m bank facility to replace its existing facilities.

"The board remains confident that the group will continue to make good strategic progress in line with management expectations throughout the remainder of the financial year," it said in a statement.

The group's European pharmaceuticals division continued to make "good progress" with first quarter revenue 4.9 per cent higher than a year ago.

However, sales from its US pharmaceuticals arm slumped 16.9 per cent on a year ago, which Dechra said was due to supply issues with its dermatological, ophthalmic and otic ranges.

The group said it has now taken full ownership of a number of these products and is transferring production to a new manufacturer. Revenue from its Vetoryl drug, which treats Cushings disease in dogs, increased by 54 per cent to $1.8m.

Dechra said because of the higher margin Vetoryl sales, profit for its US pharmaceuticals arm were higher than last year despite the lower revenue.

The group added its drug development pipeline continued to deliver results. Vetoryl received approval in Japan and Equidone, an equine product, was granted US FDA regulatory approval.

Services achieved first quarter revenue growth of four per cent, Dechra said.