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 --