U.K.-based Dechra Pharmaceuticals made a splash last August when it shelled out $56.4 million for a controlling share of Croatian poultry vaccine maker Genara. Now the company is expanding its international footprint to Mexico, acquiring veterinary pharma manufacturer Laboratorios Brovel SA de CV.
Brovel is a 52-year-old family-owned business with a significant presence in the Mexican animal health market, according to a press release from Dechra. The deal will be worth up to $6 million.
Dechra's board of directors plans to use Brovel as its entry point for gaining approval to market its own products in that country, as well as other Latin American markets, according to the release. "This is an exciting time for Dechra as we continue to grow organically, launch new products and move into new territories through acquisitions," said Dechra CEO Ian Page in the release.
In September, Dechra announced that its fiscal 2015 sales jumped 10% year over year at constant exchange rates to £203.5 million ($293.4 million) and its operating profit was up 11.6% to £44.4 million ($64 million). The company, which will announce its results for the 6 months ended Dec. 31 in February, says it expects to report revenue growth in North America of 51% at constant exchange rates.
The Genara acquisition has certainly fueled a lot of that growth, but Dechra also stands to benefit from demand for its new drug Zycortal, a treatment for the endocrine disorder Addison's disease in dogs. Zycortal was approved in Europe in September and in the U.S. in December. Dechra says it plans to maintain its sales momentum in the U.S. by continuing to invest in sales, marketing and technology support.
Dechra continues to search for promising markets overseas. It added a Canadian presence late last year, and it recently established subsidiaries in Poland and Austria--all of which contributed to growth in the most recent period, according to the company's release.