UPDATE: Dechra Pharm Revenue Up 5.3%, Confident On Growth

7th Jul 2010 13:39

(Adds detail and analyst comment.) By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Veterinary pharmaceuticals company Dechra Pharmaceuticals PLC (DPH.LN) Wednesday said fiscal-year revenue was 5.3% higher on year, driven by rising sales in the U.S. Stoke-on-Trent, England-based Dechra said it is confident about its future growth prospects. The company said sales in Europe rose 9% year-on-year during the 12 months to June 30, while sales in the U.S. advanced 36.6%. Dechra sells drugs used to treat disease in cats and dogs, medicines for horses and specialized diets for pets. It also operates a unit that provides laboratory and distribution services to vets. Fiscal-year revenue at this unit grew 3.3% on year. Dechra didn't provide figures. Mike Mitchell at brokerage Seymour Pierce estimates Dechra will report revenue of about GBP368.4 million for the fiscal year, compared with revenue of GBP350 million a year earlier. He added the company is making good progress in the U.S. with Vetoryl, a treatment for a condition called Cushing's disease in dogs that was licensed for sale there in 2009. Vetoryl sales were $6.6 million, Dechra said. Analysts expect Dechra to report fiscal 2010 earnings of between 27 pence and 30 pence a share, according to FactSet data. Brokerage Charles Stanley, which rates the stock "buy," added the outlook for profits looks strong for both of the next two years and should be helped by new product launches. However, analysts at Panmure Gordon rate Dechra "hold." They said the stock, which has declined 17% since the start of the year, will likely be capped at current levels until investors get a better idea of how the company's growth plans in the U.S. are progressing. At 1233 GMT, shares in Dechra were 5 pence or 1.2% lower at 410 pence, underperforming a 0.5% lower Dow Jones U.K. Smaller Companies index. The company reports fiscal 2010 results Sept. 7. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires July 07, 2010 08:39 ET (12:39 GMT)