Interim Management Statement

UNITED DRUG PLC

INTERIM MANAGEMENT STATEMENT

Dublin, London, 17 February 2011: United Drug plc ("United Drug", "UD" or "the Group"), a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, today issues the following Interim Management Statement (IMS) covering the period from 1 October 2010 to the date of this announcement.

The Group has made a very good start to the new financial year with all divisions trading well and particularly strong growth in our US businesses. Group revenues and profits for the three months to 31 December 2010 are ahead of last year and internal expectations, with continued strong cash flow generation. More than 60% of profits are being generated outside of Ireland.

Quarter to 31 December 2010

CONTRACT SALES & MARKETING SERVICES

The Contract Sales & Marketing Services (CSMS) division has traded strongly during the quarter with revenues and profits well ahead of last year.

In the last quarter of the 2010 financial year the Group acquired Informed, which provides healthcare communications services to the pharmaceutical industry. Since the acquisition Informed has traded ahead of expectations and been integrated into CSMS, while providing a number of cross-selling opportunities with other parts of the division. Since the end of the 2010 financial year, the Group has acquired World Events Group, in order to globalise our events management offering for international pharmaceutical manufacturer customers. This business is currently being combined with our existing events management business and will provide a platform for further growth in this area.

The performance in all parts of the division has been good during the first quarter with the division's US marketing services business being particularly strong.

HEALTHCARE SUPPLY CHAIN

Revenues and profits for the division are lower than in the same period last year, largely as a result of regulatory changes over the last 12 months, however we have made considerable market share gains in our core wholesale business and results are ahead of internal expectations.

The Group's Medical & Scientific business, part of the Healthcare Supply Chain division, is still experiencing challenging market conditions as capital spending in hospitals remains low both in the UK and Ireland. The Group's Specials business continues to perform well and is trading in line with expectations.

PACKAGING & SPECIALITY

The Packaging & Speciality division revenues and profits for the first quarter are well ahead of last year.

The packaging business in the US has had a very good performance in the period and has a strong pipeline of further business opportunities. The new management structure in place in the European packaging business has added to our business development capability and this is reflected in an increase in new business opportunities.

Our UK homecare joint venture with Medco Health Solutions Inc., was enhanced during the period with the addition of the Careology business. This brings additional patient numbers, market knowledge and business development capability and firmly establishes the business as the second largest provider in the growing UK homecare market.

Outlook

Based on trading for the year to date, the outlook for the remainder of the year and current exchange rates, the Group expects earnings per share for the year to 30 September 2011 to be ahead of last year.

The Group has strong cash flows and low levels of debt relative to those cash flows and can use this financial strength to support its future growth objectives both organically and through additional bolt-on acquisitions.

2011 Reporting Timetable

The Group will issue results for the 6 months to 31 March 2011 on Tuesday 10 May, 2011.

ENDS Thursday, 17 February 2011

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, Sweden and the USA. 

The Company operates across three divisions, Contract Sales & Marketing Services, Healthcare Supply Chain and Packaging & Speciality Services.

In the Contract Sales & Marketing Services division, United Drug is the leading provider of contract sales outsourcing 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 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, and has a leading market position in Ireland and an emerging presence in the UK.

In the Packaging & Speciality division United Drug is a leading international provider of pharmaceutical contract packaging services, with facilities in the US, UK and 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.ie