4th Apr 2007 07:00
United Drug 2007 interim trading update United Drug plc ("UD" or the "Group"), a leading provider of services tohealthcare manufacturers and pharmaceutical retailers in Ireland and the UK,today issued the following trading update in advance of its interim results forthe six months to 31 March, 2007. The Group will announce interim results on 9May, 2007. Period in Review United Drug has achieved continued strong revenue growth in each of its fourdivisions in the first half of 2007 in line with our expectations. Operatingprofit and earnings for the period are expected to show double digit growth overthe same period last year. The new agreement on drug prices in the Republic of Ireland market, announcedduring 2006, took effect from 1st March 2007. The transition to the new pricingregime has been very well managed in our Pharma Wholesale business. Asanticipated, volume growth slowed in the run up to the price reduction but hasreturned to more normal levels in March. The Pharma Wholesale division,including our Northern Ireland wholesale business, will show good growth in theperiod when measured against the first half of the 2006 financial year. Our Supply Chain Services division expanded its activities during 2006 with theacquisition of MASTA, a leading service provider in the travel health fieldspecialising in the sale and distribution of vaccines in the UK market. MASTA isperforming well ahead of our expectations. Our focus on continuing to broadenour service offering into higher margin opportunities has helped the division todeliver strong growth for the period. The Medical & Scientific division should also report good growth during theperiod under review. The development of this business in the UK market has beenaided by a full six month contribution from Endoscopy, another high qualitymedical distributor, that joined the Group during the second half of 2006.Endoscopy is on schedule to achieve its earn-out targets later this year. Thisperiod will also include a contribution from Pyramed acquired during Februarythis year. Our Contract Sales Outsourcing division is performing well in a challengingmarket place. The combined Ashfield and In2Focus brands have given us a marketleading position in the UK and this is reflected in good growth and developmentin this division. Outlook United Drug expects the strength of the current trading performance to continueinto the second half of the financial year. The Group remains positive about the fundamental dynamics driving demand forgoods and services in healthcare in our core markets and about our positionswithin those markets. The Group continues to see opportunities to expand ouroutsourcing businesses, both organically and through acquisition. About United Drug plc United Drug is a leading provider of services to healthcare manufacturers andpharmaceutical retailers. It is the largest pharmaceutical wholesaler in theisland of Ireland. UD is also the market leader in contract distributionoutsourcing (pre-wholesaling) in Ireland and has achieved the No. 1 position inthe UK through its joint venture business UniDrug Distribution (UDG). In addition to contract distribution services for pharma manufacturers, UnitedDrug provides contract distribution, sales & marketing and technical services toMedical & Scientific equipment & consumable manufacturers, with a market leadingposition in Ireland and an emerging presence in the UK. United Drug is also a leading provider of contract sales outsourcing services topharmaceutical manufacturers in the UK and Ireland. \* TInvestors and analysts Media------------------------------------------- ----------------------------------------Mark Kenny or Jonathan Neilan Pauline McAlesterK Capital Source Murray Consultants Tel: +353 1 631 5500 Tel: +353 1 498 0300Email: [email protected] Email: pmcalester@murrayconsult.ie------------------------------------------- ----------------------------------------\* T Copyright Business Wire 2007Related Shares:
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