Veterinary drugs maker Dechra dogged by slowdown in earnings during talks with EQT
Dechra Pharmaceuticals has warned that its annual earnings will be less than expected, as it negotiates a £4.6 billion takeover deal with a Swedish private equity firm.
The veterinary drugs maker told investors that its profits faced a “material impact” from US wholesalers holding less inventory and that it had seen a similar pattern of destocking in Britain.
The FTSE 250 group said there had been “encouraging signs” of a sales rebound in America but that the European market “appears to be slowing” due to the uncertain economic outlook. Dechra’s board expects to deliver underlying operating profit of less than the previous guidance of £186 million.
Shares in Dechra closed down 476p, or 13 per cent, at £31.74 after the unscheduled announcement. EQT has offered