Integration of PSPC
In May 2014, Dechra acquired the assets of PSPC, Inc. whose principal product was Phycox, a patented nutraceutical prescribed by veterinary surgeons as a supplement for dogs and horses with osteoarthritis and poor joint health. In addition, a levothyroxine sodium product was in development but had not been commercialised. In just over a year, Dechra has been able to integrate successfully the existing Phycox brand into the portfolio, as well as bring Levocrine Chewable Tablets (levothyroxine sodium) to market.
Our initial marketing objective was to increase the adoption of Phycox by new veterinary practices. We felt this could be accomplished by including Phycox in our quarterly focus, leveraging our customer base and building on our existing Dechra portfolio. When we acquired PSPC Inc. Phycox had been sold to approximately 5,400 veterinary hospitals. After 14 months under Dechra's umbrella, the number of hospitals which have purchased Phycox has reached 8,400.
We will continue to target new clinics in the 2016 financial year; however, we will also incorporate marketing initiatives to drive more volume through the current 8,400 users. This dual strategy will rely on the sales organisation to secure a steady influx of new users and the marketing team to provide the programmes and incentives to increase usage among current users.
Initially the commercialisation of Levocrine was a lower priority. As happens so often in our industry, the market changed when the levothyroxine market-leader experienced severe out of stocks. This presented a window of opportunity and our ability to move quickly allowed us to establish Levocrine as a viable product in our portfolio.
The PSPC acquisition to date has achieved our financial objectives and has had a positive impact on the awareness of the Dechra brand in the US market. Additionally, it has strengthened our position in two key market segments, endocrinology and pain management. The addition of US manufacturing allows more direct control and provides a platform for future growth in the supplement market.