U.K.-based Animalcare Group saw a solid first half with its sale of generic drugs pushing its profits up by 8% and leading to a decision to invest further in its pipeline. However, a weakness in older animal welfare products shaved away some of the upside.
The company, which sells generic vet meds and identification products for companion animals to vets, operates directly in the U.K. and through distribution and development partners in Western Europe. Animalcare says in its earning reports that its product pipeline is progressing on schedule and it maintained strong cash position.
Its earnings report, released July 11, says the company has seen a revenue rise of 6.3% from last year's end to June, up to $22.1 million from $20.7 million. Sales of the company's generic vet meds shot up by 10%, and the identification products for companion animals went up by 8%. Gross profit for the company also rose by 8%. Meanwhile, its older animal welfare products saw a decline in sales by 4%.
The company also stated in its earnings report that it will expand its operations through recruitment, currently underway, and that its three new product launches from the period has put it "comfortably ahead of the wider U.K. licensed veterinary medicine markets." Animalcare said in the earning report that its underlying operating profit is in line with market expectations of at least $4.45 million for the full year.
"Given the robust cash position, strong cashflow and our success at licensing and marketing generic veterinary medicines, the Board has taken a strategic decision to substantially increase the investment in our product development pipeline over the next five years," it wrote in the earnings report.
- here's the earnings report (PDF)