Veterinary drugmaker Dechra shares fall as it shares plan for ‘hard’ Brexit
Shares in FTSE 250 veterinary drugmaker Dechra Pharmaceuticals tumbled after the company announced it would be implementing preparation for a “hard” Brexit.
The company announced today it would be moving ahead with plans including the transfer of product registrations to the EU, with a total cost of around £2m.
Dechra says the “hard Brexit mitigation plan” will “provide an EU-based laboratory testing facility and staff for batch testing if this is required and the transfer of product registrations to an EU domiciled legal entity within the group”.
Read more: RBS chief warns it may have to reject customers in event of no-deal Brexit
In a stock exchange announcement declaring the decision, the company described “volatility” brought about by uncertainty over the terms of the UK’s withdrawal from the EU. It said that Brexit posed a risk to its supply chain, by introducing further complexity to the transfer of goods. However, Dechra said it expects the financial impact to be “immaterial”.
The UK-based company saw its shares fall by as much as 21 per cent on the London Stock Exchange after the announcement this morning, its biggest-ever one-day drop. It comes in spite of the company posting increased earnings and revenue for the latest financial year.
Read more: Fox: Treasury's no-deal Brexit forecasts are 'hard to swallow'
Dechra listed Brexit as a going concern alongside continued US sanctions against Iran, and a legal challenge launched by the EU against the tax legislation of the UK Control Foreign Company.
Founded in 1819 as Arnolds and Son, Dechra offers a range of products across Europe and the US.