Healthcare firm UDG expecting 13pc growth

UDG Healthcare expects its adjusted operating profit for the 12 months to September 30 to be between 11pc and 13pc ahead of the $165.3m (€136m) reported the prior year.

UDG has a drug packaging unit called Sharp and a division called Ashfield, which undertakes healthcare advisory, marketing and communications activities. It has a significant US presence.

Its adjusted diluted earnings per share (EPS) for this financial year is expected to be 9pc to 11pc ahead of the $0.47 reported in its financial year 2020, according to a trading update.

The profit and EPS results are before the amortisation of acquired intangible assets, transaction costs and exceptional items.

In a statement ahead of its AGM yesterday, UDG said it has made a good start to the financial year with adjusted operating profit for the three months to December 31, 2020 ahead of the same period last year.

Adjusted operating profit in its Ashfield arm was ahead of a strong comparative quarter in the previous year.

This division of the company also completed the acquisition of PHMR Limited this month.

PHMR is a market access consultancy operating in the healthcare sector.

PHMR is being bought for up to £32m (€36m), comprising of an initial consideration of £22m, with an earn-out of up to £10m payable over two years, based on the achievement of agreed profit targets.

The Sharp division of UDG “continued to deliver a strong performance with adjusted operating profit well ahead of the same quarter last year”, according to the update.

“Against a backdrop of ongoing lockdowns in most key markets, UDG has delivered a better-than-expected Q1, notably in its ‘in-field’ activities: STEM and Ashfield Commercial & Clinical,” said Davy analysts Allan Smylie and Andrew Young in a note.

“This suggests UDG’s pharma clients are rapidly adjusting to a new world of digital engagement. We also think UDG management is building a stronger company through the pandemic.”

UDG also announced the rebranding of its Ashfield division. Ashfield Communications & Advisory has been rebranded as Ashfield Advisory & Health, while Ashfield Commercial & Clinical will now be Ashfield Engage.

Shares in UDG were up over 4.9pc in afternoon trading in London yesterday.