4th Apr 2007 07:00
United Drug plc ("UD" or the "Group") (LSE:UDG) (ISE:UDG)(ISE:UN6A), a leading provider of services to healthcare manufacturersand pharmaceutical retailers in Ireland and the UK, today issued thefollowing trading update in advance of its interim results for the sixmonths 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 eachof its four divisions in the first half of 2007 in line with ourexpectations. Operating profit and earnings for the period areexpected to show double digit growth over the same period last year. £ The new agreement on drug prices in the Republic of Irelandmarket, announced during 2006, took effect from 1st March 2007. Thetransition to the new pricing regime has been very well managed in ourPharma Wholesale business. As anticipated, volume growth slowed in therun up to the price reduction but has returned to more normal levelsin March. The Pharma Wholesale division, including our NorthernIreland wholesale business, will show good growth in the period whenmeasured against the first half of the 2006 financial year. £ Our Supply Chain Services division expanded its activities during2006 with the acquisition of MASTA, a leading service provider in thetravel health field specialising in the sale and distribution ofvaccines in the UK market. MASTA is performing well ahead of ourexpectations. Our focus on continuing to broaden our service offeringinto higher margin opportunities has helped the division to deliverstrong growth for the period. £ The Medical & Scientific division should also report good growthduring the period under review. The development of this business inthe UK market has been aided by a full six month contribution fromEndoscopy, another high quality medical distributor, that joined theGroup during the second half of 2006. Endoscopy is on schedule toachieve its earn-out targets later this year. This period will alsoinclude a contribution from Pyramed acquired during February thisyear. £ Our Contract Sales Outsourcing division is performing well in achallenging market place. The combined Ashfield and In2Focus brandshave given us a market leading position in the UK and this isreflected in good growth and development in this division. £ Outlook £ United Drug expects the strength of the current tradingperformance to continue into the second half of the financial year. £ The Group remains positive about the fundamental dynamics drivingdemand for goods and services in healthcare in our core markets andabout our positions within those markets. The Group continues to seeopportunities to expand our outsourcing businesses, both organicallyand through acquisition. £ About United Drug plc £ United Drug is a leading provider of services to healthcaremanufacturers and pharmaceutical retailers. It is the largestpharmaceutical wholesaler in the island of Ireland. UD is also themarket leader in contract distribution outsourcing (pre-wholesaling)in Ireland and has achieved the No. 1 position in the UK through itsjoint venture business UniDrug Distribution (UDG). £ In addition to contract distribution services for pharmamanufacturers, United Drug provides contract distribution, sales &marketing and technical services to Medical & Scientific equipment &consumable manufacturers, with a market leading position in Irelandand an emerging presence in the UK. £ United Drug is also a leading provider of contract salesoutsourcing services to pharmaceutical manufacturers in the UK andIreland. Copyright Business Wire 2007Related Shares:
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