The shares in Dechra Pharmaceuticals, an FTSE 250 veterinary drugmaker, plunged after the announcement of the company that it would be implementing its preparations for a “hard” Brexit.
Today, the company revealed that it would be moving ahead with its plans which would include the transfer of product registrations to the European Union. It will have a total cost of approximately £2 million.
Dechra says that 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.”
In a stock exchange announcement that declared the decision of the company, Dechra described “volatility” that was brought about by the uncertainty over the terms of the withdrawal of the United Kingdom from the European Union. It said that Brexit was posing a risk to the supply chain of the company by adding further complexity to the transfer of goods. However, Dechra said that it is expecting the financial effects of a hard Brexit to be “immaterial” to the company.
The company is based in the United Kingdom It saw its shares plunge by as much as 21 percent on the London Stock Exchange following the announcement that was made this morning. It is considered as the biggest-ever one-day drop company. The decrease in share price comes in spite of the firm posting increased earnings and revenue for the most recent financial year.
Brexit was listed by Dechra as a going concern alongside the continued sanctions that are being imposed by the United States of America against Iran, and a legal challenge that was launched by the European Union against the tax legislation of the UK Control Foreign Company.
The company was founded in 1819 as Arnolds and Son Dechra offers a range of products across the US and Europe.