Interim Management Statement

UNITED DRUG PLC

INTERIM MANAGEMENT STATEMENT

Dublin / London, 9 February 2010: United Drug plc ("United Drug" or "the Group"), a leading international provider of services to healthcare manufacturers and pharmaceutical retailers is issuing this Interim Management Statement (IMS) in advance of the Company's AGM to be held in Dublin today at 12pm. The statement covers the period from 1 October 2009 to the date of this announcement.

Trading across the Group has been good in the first quarter of the financial year with profits in line with budget and well ahead of what was a slow first quarter in 2009. Those areas of the business that performed below expectations during 2009 are now back trading in line with budget. Internally generated cash flows continue to be strong across the Group.

Quarter to 31 December 2009

Overall profits in the Healthcare Supply Chain division are ahead of last year. Our wholesale businesses in the Republic of Ireland and Northern Ireland have maintained their market leading positions in markets that are still experiencing volume growth. In the Republic of Ireland the introduction, in January 2009, of a previously announced reduction in the price of off-patent medicines means that overall revenues for the period are in line with those in the same period in the prior year.

Medicine prices in Ireland are set through an agreement between the Department of Health and the pharmaceutical manufacturers. This agreement was due for renewal in September of this year however, following the announcement, in December 2009, of the Government's budget for fiscal 2010, a new agreement has now been concluded with effect from 1 February 2010. The new agreement will see a further reduction of 40% in the price of off-patent medicines and will impact on the revenues of our Irish wholesale business in the current year.

The Group's Medical & Scientific business, part of the Healthcare Supply Chain division, has performed in line with budget during the period. Capital spending in hospitals remains slow both in the UK and Ireland but the business is seeing good new business opportunities and has already had a positive contribution from its newly established operation in Sweden. The Group's Specials business, trading as Craig & Hayward and The Specials Laboratory in the UK, is continuing the strong growth reported through last year.

Profits in the Packaging & Speciality division are well ahead of the first quarter in 2009. The strong trading experienced in the US packaging business in the second half of the last financial year has continued into the new financial year and results for this business are well up on the same period last year. Trading in the European packaging businesses is slightly below last year as, despite positive indications, volumes in the UK business that were taken in-house by a manufacturer client have not yet returned to previous levels. The newly established joint venture with Medco Health Solutions Inc., providing homecare services in the UK, is running ahead of the planned timetable to establish the infrastructure to support the service. This business is budgeted to incur significant start-up costs in the current year but is already seeing excellent opportunities in this growing market and is expected to become a meaningful contributor to the Group in the coming years.

The Contract Sales & Marketing Services division continues to trade strongly with profits for the period ahead of last year. All businesses within the division are trading well with our US regulatory affairs business, Alliance Healthcare, a particularly strong performer. In addition to continuing to grow its core business and leverage client relationships with other businesses within the division, Alliance has been successful in putting together a joint offering with Sharp our US packaging business. Alliance and Sharp have combined to offer manufacturers a single solution to the packaging and patient compliance management for specialist medications.

Outlook

The Group has had a successful first quarter and the trading outlook for most parts of the business is encouraging. After taking account of the new agreement on medicine prices in the Republic of Ireland that came into effect on 1 February 2010 and the investment in the current year in the UK homecare joint venture

the Group expects profit before tax for the year to 30 September 2010 to be broadly in line with the prior year, on a constant currency basis.

2010 Reporting Timetable

The Group will issue results for the 6 months to 31 March 2010 on Tuesday 11 May, 2010.

ENDS

For reference:

Liam FitzGerald Pauline McAlester

Barry Mc Grane

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, Healthcare Supply Chain, Packaging & Speciality Services, and Contract Sales & Marketing Services.

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 Packaging & Speciality 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.

In the Contract Sales & Marketing Services 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.

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