4th Oct 2007 07:01
United Drug PLC04 October 2007 United Drug 2007 Trading Update UDG.I UDG.L Dublin, London, 4 October 2007: United Drug plc ("UD" or the "Group"), a leadingprovider of services to healthcare manufacturers and pharmaceutical retailers inthe UK, Ireland and Continental Europe, today issued the following TradingUpdate in advance of its results for the year to 30 September 2007. The Groupwill announce 2007 preliminary results on 21 November 2007. Period in Review United Drug experienced good trading conditions and strong revenue growth ineach of its four divisions during 2007. Operating profit and earnings for theyear to 30 September 2007 are expected to show double digit growth over 2006 andshould be ahead of current consensus market expectations. A new agreement on drug prices in the Republic of Ireland market, announced in2006, took effect on 1 March 2007. The new price agreement reduced growth in themarket, in line with our expectations. The transition to the new pricing regime,however, was very well managed within our Pharma Wholesale business. The Groupacquired Craig & Hayward, a UK based specials distributor in May of this year.This important addition to our Pharma Wholesale business has performed in linewith expectations, since joining the Group. UD's Pharma Wholesale division,including the Northern Ireland wholesale business, will show good growth for thefull year. During 2007, the Group made significant progress in its Supply Chain Servicesdivision towards the development of a European pharmaceutical contract packagingbusiness. The Group acquired two contract packaging businesses, Budelpack inBelgium and MPF in Holland. Both of these businesses have performed well sincebeing acquired. These businesses, together with UD's existing UK packagingbusiness, TD Packaging, create a strong platform for the development of thisservice to existing and new Pharma customers across a number of markets. Otherbusinesses within this division have performed strongly in the period, inparticular MASTA and UDG. These performances will result in the Supply ChainServices division reporting significant growth for the full year. The Group's Medical & Scientific division is also expected to report very stronggrowth for the full year. Continued positive performance in the underlyingbusinesses both in Ireland and the UK has been complemented by the acquisitionof Pyramed, a high quality medical distributor in the UK market. The Pyramedbusiness has performed ahead of our expectations since acquisition and is nowintegrated into the Group's UK infrastructure in Basingstoke. In Contract Sales Outsourcing the Group integrated its existing UK businesses,Ashfield and In2Focus during the period. Following a rebranding the combinedentity is now trading as Ashfield In2Focus. The division will report a goodoutcome for the full year. The combined businesses create a more efficientorganisation which is well positioned to benefit from further marketopportunities in the changing contract sales market place. Outlook The Group remains positive about the fundamental dynamics driving the demand forhealthcare goods and services in our core markets and about our positions withinthose markets, despite the ongoing challenge presented by Government regulationimpacting on parts of the business. The Group continues to see opportunities toexpand its manufacturer services businesses, both organically and throughacquisition. About United Drug plc United Drug is a leading provider of services to healthcare manufacturers andpharmaceutical retailers in the UK, Ireland, and Continental Europe. It is thelargest pharmaceutical wholesaler in the island of Ireland. UD is also themarket leader in contract distribution outsourcing (pre-wholesaling) in Irelandand has achieved the No. 1 position in the UK through its joint venture businessUniDrug Distribution Group (UDG). In addition to contract distribution services for pharma manufacturers, UnitedDrug provides contract distribution, sales & marketing and technical services toMedical & Scientific equipment & consumable manufacturers, with a market leadingposition in Ireland and an emerging presence in the UK. United Drug is also a leading provider of contract sales outsourcing services topharmaceutical manufacturers in the UK and Ireland. ENDS Thursday, 4th October 2007 Investors and analysts Media Mark Kenny or Jonathan Neilan Pauline McAlester K Capital Source Murray Consultants Tel: +353 1 631 5500 Tel: +353 1 498 0300 Email: [email protected] Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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