Integration of Acquisitions
Enhancing our product portfolio
Integration of Putney
On 22 April 2016, Dechra acquired the share capital of Putney Inc., a leading developer of FDA approved CAP in the US located in Portland, Maine. The acquisition of Putney provided Dechra with a highly performing product development management system and processes, as well as an enhanced product portfolio and pipeline of high quality, bioequivalent, FDA approved, specialty drugs supporting the US veterinary community and strengthening our presence in the world's largest companion animal market.
The first year integration efforts focused on:
- retaining key Product Development and Regulatory expertise, to enable continued product pipeline progress; and
- the integration of Putney's Commercial and Inside Sales functions into a combined US Commercial Operations to leverage existing distribution relationships and strengthen the commercial presence with US veterinary clinics.
The Putney portfolio is exceeding expectations of value from the acquisition in the first year and delivering a year-on-year growth rate of 39% for the acquired Putney portfolio. The combined product portfolio provided our commercial team with improved access to distribution and veterinary clinics in the US, helping to drive year-on-year growth at above our expectations across the full US Dechra portfolio.
In September of 2016, Putney Amoxicillin Trihydrate and Clavulanate Potassium Tablets, an antibiotic for dogs and cats, was approved by the FDA. This first approval from the Putney pipeline was our most successful launch to date in the US with initial market penetration well above expectations (see Strategy in Action: Pipeline Delivery).
Investments in Growth
The Customer Relationship Management (CRM) system previously used by Putney has been redesigned and implemented across the US and Canada providing Dechra with an enhanced ability to penetrate the market. The CRM system supports daily collaboration and performance tracking for partnered inside and outside sales representatives and provides real time data for commercial analysis and the development of targeted marketing promotions.
Improvements in supply chain and logistics processes are underway to support continued growth and reduced supply risks and reliance on third party manufacturing of the expanded Dechra portfolio in the US market (for further information see Strategic Enablers: Manufacturing and Supply Chain).
Key Putney Product Development and Regulatory expertise has been retained in Portland while the global Product Development team was reorganised this year to support our portfolio strategy and enable the robust pipeline developed at Putney to continue its successful history of gaining approval by the FDA. Anthony Lucas, who joined Dechra as part of the Putney acquisition, has implemented Product Development best practices at Dechra and leads Global Product Development.