Interim Management Statement

UNITED DRUG PLC

INTERIM MANAGEMENT STATEMENT

Dublin, London, 7 February 2012: United Drug plc ("United Drug" or "the Group"), a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, today issues the following Interim Management Statement covering the period from 1 October 2011 to the date of this announcement.

Trading throughout the Group since the start of the new financial year has been good. Group revenues and profits for the quarter to 31 December 2011 are ahead of the first quarter of last year. Much of this development has come in our international operations with the businesses outside of Ireland contributing almost 70% of group profits in the quarter. In addition, cash generation for the period was good and ahead of our forecasts.

Quarter to 31 December 2011

HEALTHCARE SUPPLY CHAIN

Revenues and profits in the Healthcare Supply Chain division are ahead of our forecasts for the period and in line with the same period last year.

In the Republic of Ireland, while profits are down slightly, our wholesale business continues to outperform a market that declined in value by almost 3% in the quarter as a result of recent regulatory changes. Cost savings, following last year's restructuring, are now being realised and the business should continue to trade well, in a tough environment, through the remainder of the year. Our Northern Ireland wholesale business has also outperformed its market and grown profits well ahead of last year in the quarter.

Our pre-wholesale businesses have traded well in the period particularly in the UK where recent new business wins have started to contribute resulting in a significant uplift in profits, in line with expectations. There have also been a number of new contract wins in Ireland during this period and they will add to the business later in the year.

Encouragingly, after a number of difficult years, our Medical & Scientific business, both in the UK and Ireland, has had a strong first quarter with profits well ahead of last year.

The introduction of a drug tariff on certain specials medicines in the UK has had an impact on our businesses in this sector. However, the tariff will help to remove uncertainty from this market and we expect our businesses to continue to trade well.

SALES, MARKETING & MEDICAL

Revenues and profits for the Sales, Marketing & Medical division are ahead of the same period last year with all business units making a contribution.

We continue to be the clear market leader in the provision of contract sales outsourcing services in the developed UK market and despite on-going pricing pressures we have further grown this business during the period. We are currently a much smaller player in the less penetrated US contract sales outsourcing market but have grown our position significantly during the period.

The integration of the pharmaceutical events management businesses acquired in recent years is proving very successful and good growth in this business has been recorded. We have also made considerable progress in our healthcare communications and consultancy offering and this unit has grown well ahead of forecasts for the period.

PACKAGING & SPECIALTY

Our Packaging & Specialty division has made a very good start to the year with revenues and profits ahead of last year.

Our US packaging business continues to grow and develop as its high quality offering wins more customers. Revenues and profits in the business for the quarter are ahead of what was a very strong first quarter last year. Our European packaging business is at an earlier stage in its development and operates in a more fragmented and less developed market. However the benefit of providing packaging solutions across two continents is paying off as business from US customers looking to have product packaged in the EU is assisting our European business as it continues to fill its new business pipeline and utilise available capacity.

In recent days a leading pharmaceutical company has notified our packaging division that it has been awarded a significant multi-year packaging contract. This contract will add in excess of €30 million to divisional revenues over a 4 year period. We expect revenue flow to commence in the coming months.

Our Irish specialty business, the market leader, has grown well in the period and has a number of exciting opportunities as community and home healthcare services develop in Ireland.

Outlook

Based on the good trading performance for the year to date, the outlook for the remainder of the year, and stability in current exchange rates, the Group expects adjusted diluted earnings per share for the year to 30 September 2012 to be between 4% and 8% ahead of last year.

The Group also expects to deliver another strong cash flow performance in the year. With relatively modest debt levels and strong cash flows the Group is well positioned to support its future growth objectives both organically and through additional acquisitions.

2012 Reporting Timetable

The Group will report interim results for the six months to 31 March 2012 on Wednesday 9 May, 2012.

ENDS

For reference:

Liam FitzGerald Pauline McAlester

Barry McGrane

United Drug plc Murray Consultants

Tel: +353-1-4632300 Tel: +353-1-4980300

About United Drug plc

Listed on the Stock Exchanges in London and Dublin, United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in the UK, Ireland, the Netherlands, Belgium, and the USA. 

The Company operates across three divisions, Healthcare Supply Chain, Sales, Marketing & Medical, and Packaging & Specialty.

In Healthcare Supply Chain, United Drug is the largest pharmaceutical wholesaler in the island of Ireland. It is also the market leader in contract distribution outsourcing (pre-wholesaling) in Ireland and has achieved the No. 1 position in the UK through its joint venture business UniDrug Distribution Group (UDG). The Company provides specials medicines manufacturing and distribution services in the UK. Through its medical & scientific operations, United Drug provides sales & marketing and technical service solutions, including contract distribution services to a wide range of medical & scientific equipment & consumable manufacturers, with a market leading position in Ireland and an emerging presence in the UK.

In the Sales, Marketing & Medical division United Drug is the leading provider of contract sales outsourcing services to pharmaceutical manufacturers in the UK and Ireland and has a growing presence in the US market. United Drug also provides related marketing services to pharmaceutical manufacturers in each of these markets.

In the Packaging & Specialty division United Drug is a leading international provider of pharmaceutical contract packaging services with facilities in the US, UK, Dutch and Belgian markets. The Company also provides speciality distribution and homecare services in the UK and Ireland.

For more information go to www.united-drug.com.