Dechra Pharmaceuticals said in a trading statement Tuesday that its first half has been in line with management expectations, but admitted its European Pharmaceuticals segment saw growth slow from 73.7 per cent to 61.4 per cent year-on-year.

The reported divisional performance over the corresponding period last year, excluding Eurovet Animal Health, declined by 2.4% (an increase of 4.5% at constant currency), which the group said reflected an exceptional increase last year of £1.2m in the production of Vetoryl for the US market to ensure continuity of supply as it implemented manufacturing changes.

Planned changes to distribution arrangements in France and Germany also had an adverse effect on reported revenue, the firm said.

More positively, the integration of Eurovet continued to progress well and is delivering expected cost and revenue synergies.

In US Pharmaceuticals, revenue was ahead of the corresponding period last year by 10.0% (10.4% at constant currency), with strong growth seen in its DermaPet, Vetoryl and Felimazole products.

Revenues from the services division rose 5.1% compared to the prior year, while operating margin over the 12 months "demonstrated a modest improvement over the corresponding period last year".

The group commented that it made a "strong start to the financial year which is in line with the board's expectations".

The share price fell 2.8% to 625p on Tuesday morning.

NR

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