Interim Management Statement

UNITED DRUG PLC

INTERIM MANAGEMENT STATEMENT

Dublin, London, 29 July 2010: 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 April 2010 to the date of this announcement.

Overall trading across the Group in the period has been satisfactory, with a strong performance in parts of the business. Group profits for the nine months to 30 June 2010 are in line with last year, as expected, and cash flows continue to be strong throughout the Group.

Quarter to 30 June 2010

HEALTHCARE SUPPLY CHAIN

Our wholesale businesses in the Republic of Ireland and Northern Ireland have made additional market share gains during the period adding to their market leading positions. In the Republic of Ireland the implementation, in February 2010, of a further reduction in the price of off-patent medicines has resulted in a fall in the value of the full-line wholesale market since that date. United Drug Wholesale has outperformed the market during this period but has seen revenues decline, in line with expectations. In Northern Ireland, UD has increased revenues during the period despite a price reduction introduced in January 2010.

The Group's Medical & Scientific business, part of the Healthcare Supply Chain division, is still experiencing very difficult market conditions and trading below prior year levels. Capital spending in hospitals remains slow both in the UK and Ireland with major investment decisions continuing to be deferred. The difficult market conditions are presenting additional outsourcing opportunities as medical equipment and device manufacturers examine how they operate their business as revenues fall. A number of new business wins arising from these opportunities will result in additional revenues and profits going into the new financial year. The Group has established a new medical and scientific operation in Sweden and this business is making a positive contribution in its first year of trading.

The Group's Specials business prepares and distributes specials medicines in the UK. A "special" is a unique formulation of a commonly prescribed product prepared in response to a specific patient prescription requirement. This business is continuing the strong growth reported through last year and the first half of the current year.

CONTRACT SALES & MARKETING SERVICES

The Contract Sales & Marketing Services division continues to trade strongly with profits year to date well ahead of last year in a buoyant market.

The core Contract Sales Outsourcing (CSO) business has expanded contracts with existing clients and gained new clients during the period, particularly in the UK, as a growing number of major pharmaceutical manufacturers increase the proportion of their sales effort that they outsource. There continues to be a strong pipeline of new business opportunities in the UK, US and Irish markets.

The division's US marketing services business provides a range of supports for pharmaceutical companies marketing requirements, including medical affairs information, patient compliance support and clinical trials recruitment. This business has also continued to win new customers and has already exceeded all its targets for the current year. The division's events management offering, both in the UK and the US, has performed strongly during the period, after a relatively slow start to the year, and the outlook for the remainder of the year is positive.

PACKAGING & SPECIALITY

The Packaging & Speciality division continues to trade well with profits year to date ahead of last year.

Profits in packaging remain well ahead of last year, particularly in the US. An enhanced management structure has been put in place in the European packaging business and this will help to capitalise on a growing number of opportunities and drive long term growth in this business.

The newly established joint venture with Medco Health Solutions Inc., providing homecare services in the UK, is still in its first year of operation and establishing the infrastructure to support the business. The joint venture will, as budgeted, incur significant start-up costs in the current year as it builds that infrastructure but all the early indicators for the business are positive. The offering has been well received by both the NHS and pharmaceutical manufacturers, and the business has already won two important contracts with major multinational pharmaceutical manufacturers.

The division's vaccines business is still experiencing difficult trading conditions also impacted by the ash clouds earlier in the year reducing the level of travel and travel vaccine requirements. This business is trading below prior year levels but its new occupational health offering should put the business back on a growth path from next year.

Outlook

Based on trading for the year to date and the outlook for the remainder of the year, the Group continues to expect profit before tax for the year to 30 September 2010 to be broadly in line with the prior year, on a constant currency basis.

The Group continues to explore opportunities to expand its business, both organically and through a number of acquisition options, and has a strong balance sheet to support its growth objectives.

2010 Reporting Timetable

The Group will issue results for the year to 30 September 2010 on 17 November, 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 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.

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