Dechra Pharmaceuticals- Trading Update

The Board of Dechra issues the following trading update ahead of the publication of the Group’s Half-Year Results for the six months ended 31 December 2012 which are scheduled to be announced on Tuesday 26 February 2013. Trading Update Trading across the Group in the first half has been in line with management expectations with revenue for the six months ended 31 December 2012 approximately 20.2% (22.9% at constant currency) ahead of the equivalent period last year. There have been no material events or transactions during the period covered by this statement. European Pharmaceuticals This segment grew revenues in the first half by 61.4% (73.7% at constant currency). The reported performance over the corresponding period last year, excluding Eurovet® Animal Health (“Eurovet”), declined by 2.4% (an increase of 4.5% at constant currency). This reflects an exceptional increase last year of £1.2 million in the production of Vetoryl® for the US market to ensure continuity of supply as we implemented manufacturing changes; this was reversed in the consolidated Group figures. Planned changes to distribution arrangements in France and Germany also had an adverse effect on reported revenue, the effect of which will be reversed by incremental sales and margin in the second half of the financial year. However, our own branded pharmaceuticals grew by 10.2% and our Specific® pet diets by 6.1%. The integration of Eurovet continues to progress well and is delivering expected cost and revenue synergies. US Pharmaceuticals Revenue from US Pharmaceuticals was ahead of the corresponding period last year by 10.0% (10.4% at constant currency), with strong growth from DermaPet®, Vetoryl and Felimazole®. Services Revenue from this segment for the six months ended 31 December 2012 increased 5.1% on the equivalent period in the prior year. Operating margin in the period demonstrated a modest improvement over the corresponding period last year. Summary The Group has made a strong start to the financial year which is in line with the Board’s expectations.

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