The Business and its Markets

The Business and its Markets

Dechra Pharmaceuticals PLC (“Dechra”) operates under two Divisions, Pharmaceuticals and Services. The Pharmaceuticals Division operates internationally and is unique in having its sole area of specialisation in companion animal products. The Services Division serves UK veterinary practices in both the companion animal and livestock sectors.

Following the acquisition of VetXX in January 2008 (which is detailed later in this review), the Group now employs 970 people and operates out of 11 countries.

The veterinary market for companion animal products is dominated by North America, Western Europe and Japan. Key drivers within the companion animal market are the increasing medical and surgical capabilities of veterinary surgeons, increased life expectancy of pets and ultimately the consumer’s passion for their animals.

The North American, Western European and Japanese markets are the most significant companion animal markets in the world, with pet ownership in over 50% of households and with a high level of spend per animal. The table below provides details of companion animal populations in the markets in which Dechra currently has a sales and marketing operation.

Campanion Animal Poulations in Dechra Territories

Dechra currently markets products through partners and has products in registration in several other important small animal markets, the most significant of which are detailed below:

Campanion Animal Poulations in Important Non-Subsidiary Countries

The UK veterinary market, which still represents the majority of Dechra’s overall sales, has consistently outperformed the Retail Prices Index over the last ten years of market growth.