Horse drug firm gallops ahead

SALES of drugs for horses and international expansion have helped to perk up profits at Dechra Pharmaceuticals.

The veterinary drug group said higher sales of equine products in European pharmaceuticals fuelled an 8.1pc rise in first-half revenue to £86.3m.

The introduction of lameness treatment Osphos in the UK, France, Germany and the Netherlands and the refocusing of another equine product known as Equipalazone contributed to the sales increase.

Dechra Pharmaceuticals had endured a difficult period in diet sales in Europe, where it lost part of its business in Scandinavia.

However, chief executive Ian Page said: ‘We have seen signs of recovery in the second quarter of this financial year and several countries, including our largest market France, are now showing growth.’

Cheshire-based Dechra did particularly well in North America, where revenue increased by 51.9pc to £24.5m as its dermatology, endocrinology and ophthalmic ranges started the year strongly. Sales of the group’s DermaPet range reached the £14.2m threshold in August last year and hormone drug Vetoryl drove growth in that sector.

Dechra (up 10pc, or 106p, to 1168p) said the integration of Croatia-based animal health pharmaceutical business Genera, which it bought in October last year, was on track.

Underlying operating profit in the six months to December 31 rose 24.2pc to £26.3m on a 14.9pc lift in revenue to £110.7m.

It increased its interim dividend by 8.4pc to 5.55p against a year ago.

Page said: ‘We’re pleased to report a strong first-half performance.’