Executive Interview – Dechra Pharmaceuticals

Dechra Pharmaceuticals continues to deliver its strategic objectives, with recent results confirming solid performances across the board:

• clear evidence of positive momentum in growing the key products portfolio;
• new product launches on track, notably Osphos, a novel product for equine lameness;
• new subsidiaries established (replacing local distribution) with Canada in January 2015; and
• selective acquisitions, for example PSPC in June 2014 to bolster the US presence.
Companion Animal Products (CAP) continues to underpin the performance, with solid growth in Europe and the US as the core products gain market traction.

The Equine Business is also growing strongly in Europe and the US, but Food-producing Animal Products (FAP) continues to be affected by the reduction in antibiotic usage in Europe.

The expansion of the global footprint is showing through, with North American Pharmaceuticals benefiting from the improved local infrastructure. The setting up of a direct presence in Canada follows that established in Italy in 2014, with Poland likely to be set up during the coming year.

With significant exposure to the European markets, coupled with a growing presence in the US, the movements of the euro and US dollar can have a material impact on reported revenues and profits. The company estimates that each 1% movement in the euro affects the reported EPS by 1%, with a corresponding 1% movement in the US dollar having a more muted 0.1% effect on EPS.