Dechra Buys US Animal Health Company Putney
The UK’s Dechra Pharmaceuticals is boosting its presence in the US animal health market with the proposed acquisition of Putney, a Portland, Maine-based developer of generic veterinary products.
The purchase has the potential to double Dechra’s business in the US, which it regards as the world’s largest companion animal market, and add critical mass to its existing operations and infrastructure.
The purchase price of £139 million ($200 million) cash will be part funded by a share offering from which Dechra hopes to raise around £47.1 million, net of expenses.
Putney currently markets 11 products in complementary therapeutic areas to Dechra, including pain management, anti-infectives and dermatology. It also has a pipeline of 10 products which are expected to launch in the coming years.
Since 2012, Putney has gained more than 40% of all US approvals for generic veterinary products. The company has focused on targeting products with limited competition and high market demand.
Dechra said it believes opportunities for synergies exist while retaining the resources needed in Portland. It added that, in the future, it may be possible to manufacture pipeline products in-house. Currently, Putney outsources production through profit-share arrangements or on a fee-for-service basis.
