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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dechra Pharmaceuticals - Impending US drug approval could herald profit surge

April 2007

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DPH
  • Price:
  • 293p
Most small drug development firms make very dangerous investments because they typically don’t have the profitable backbone to finance the long lead times required to get potential block-busters to market. In other words, it’s a case of shoot the lights out or go bust. However, Dechra Pharmaceuticals (FT sector: Pharmaceuticals & Biotech), which manufactures and sells pharmaceutical products mainly to the animal health market, has that nice balance between steady profits and raw excitement surrounding two of its proprietary drugs which will soon launch in the much bigger US market. The majority of Dechra’s business is generated by its Services division, NVS (64% profit), which apart from a small laboratories ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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