Interim Management Statement

UNITED DRUG PLC

INTERIM MANAGEMENT STATEMENT

Dublin, London, 11 August 2011: 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 April 2011 to the date of this announcement.

Trading conditions since 1 April 2011 have remained similar to those reported for the six months to 31 March 2011 with all divisions trading well and particularly strong development in our US businesses. Group revenues and operating profits for the nine months to 30 June 2011 are ahead of last year and in line with our expectations with continued strong cash flow generation. The international development of the Group has continued to manifest itself during this period with our businesses outside of Ireland contributing over 65% of profits.

Revenue in our Irish businesses continues to be impacted by measures taken by the Irish healthcare authorities to reduce health spending. To offset the impact of these measures we are rationalising our cost base in Ireland and are fully integrating our most recent acquisitions into the Group in the current year. These changes will result in a once-off restructuring charge in the region of €9 million to deliver annualised savings in excess of €5 million across the Group.

Quarter to 30 June 2011

SALES, MARKETING & MEDICAL

The Sales, Marketing & Medical division has traded strongly throughout the period with revenue and profits year-to-date well ahead of the same period last year.

The development of this division is a combination of a very positive contribution from businesses acquired during the last 12 months together with good growth from our existing operations. InforMed, the healthcare communications business acquired late in the last financial year, and World Events, the global healthcare events management company acquired earlier in the current financial year, have both fitted well into the division and made positive contributions during the period. World Events is currently being integrated with our existing healthcare events management offering. Within existing operations our US medical affairs business is particularly noteworthy with performance year-to-date well ahead of last year, while our US contract sales outsourcing business has had a number of new contract wins recently that position the business well for the remainder of this year and looking into the next financial year.

HEALTHCARE SUPPLY CHAIN

Revenues and profits in the division for the year-to-date are lower than for the same period last year, in line with expectations, largely as a result of regulatory changes introduced over the last 12 months.

Market share gains in our wholesale business along with new business wins in pre-wholesale have helped to offset much of the impact of these regulatory changes and the fall in the value of the Irish wholesale market of over 4%. The Group's Medical & Scientific business, part of the Healthcare Supply Chain division, is operating in a challenging market but continuing to see some improvement in underlying trading. The Group's Specials business continues to perform well, in line with expectations.

PACKAGING & SPECIALITY

The Packaging & Speciality division has also traded strongly throughout the period with revenues and profits for the year-to-date well ahead of the same period last year.

Our US packaging business has had another strong quarter and, with a healthy order book and an efficient operation, should continue to be well ahead of last year as the year finishes. The European packaging business continues to extend its new business pipeline and improve operational efficiencies, in conjunction with its US counterparts. These measures will provide a platform for long term growth but in the short term year-to-date trading is below last year.

Our UK homecare joint venture with Medco Health Solutions Inc. has further increased the number of patients being treated during the period while integrating the Careology acquisition.

Outlook

Based on trading for the year to date and the outlook for the remainder of the year the Group expects operating profit before restructuring charges 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 acquisitions.

2011 Reporting Timetable

The Group will issue results for the year to 30 September 2011 on Wednesday 16 November, 2011.

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, Sweden and the USA. 

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

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 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.

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