Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Dechra Pharmaceuticals shares dip back as it says trading in line with expectations

In a trading update for the year ended 30 June 2018, the FTSE 250-listed firm said group revenue for the period increased approximately by 14% at constant exchange rates
Vet with a cat
Dechra said European Pharmaceuticals revenue growth was 11%, while North America Pharmaceuticals revenue growth was 18%

Dechra Pharmaceuticals PLC (LON:DPH) shares had lost earlier gains by late morning on Tuesday as the veterinary drug firm revealed that strong full-year trading was in line with management expectations.

In a trading update for the year ended 30 June 2018, the FTSE 250-listed firm said group revenue for the period increased by approximately 14% at constant exchange rate (CER).

READ: Jefferies gives booster to Dechra Pharma with upgrade to ‘buy’ from ‘hold’ following recent acquisitions

The company said European Pharmaceuticals revenue growth was 11%, while North America Pharmaceuticals revenue growth was 18% at CER.

Dechra also said the integration of AST Farma, Le Vet and RxVet Limited, now Dechra Veterinary Products New Zealand Limited, is proceeding well and trading is in line with expectations.

Ian Page, Dechra's chief executive officer, said: “We are pleased to have delivered another year of strong revenue growth. This has been driven from our core portfolio, good market penetration and recent pipeline launches.”

After opening higher, however, Dechra Pharma's shares had gone into reverse approaching midday, down 1.2% to 2,914p.

In a note to clients, analysts at Numis Securities pointed out: “Dechra’s shares have performed strongly up over 70% over the past 12m as the business delivers on both organic (pipeline/geographic expansion) and M&A and trades at 22x 2019E EV/EBITDA for low-teens EBITDA growth, which we view as well-supported.”

They repeated an ‘add’ rating and 2,950p a share target price on the stock.

 -- Updates share price, adds analyst comment --

View full DPH profile View Profile

Dechra Pharmaceutical Timeline

Related Articles

car-t cells definition
September 24 2018
The phase I clinical study will evaluate the safety of MaxCyte's MCY-M11 chimeric antigen receptor in people with relapsed or difficult-to-treat ovarian cancer and peritoneal mesothelioma
scientist with vial
September 25 2018
The AIM-listed drug developer is at the vanguard of advances in the emerging field of immuno-oncology
man coughing
November 09 2018
Some of the big boys are shifting their focus away from their respiratory drugs, which could open up opportunities for Circassia to in-license them

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use