In a third-quarter trading update, UK-based Benchmark said it was also experiencing a reduced contribution from trials of certain pre-licence pipeline products within its Animal Health division, as a result of making good progress towards satisfactorily concluding trials with fewer treatments than expected, and from delays in commencing trials in several territories.
The company’s expectations of the revenue and profit mix for the full year have also changed. Benchmark said it is actively progressing its programme of operational and structural efficiencies, including key commercial licensing deals for its non-core animal vaccines, which, if completed this financial year, are expected to substantially offset the lower income from feed and product trials. However, there is a risk to the delivery of these deals within the current financial year.
Benchmark added that notwithstanding these short-term challenges, its board believes that the company is well positioned in its markets and the opportunities for its existing products and those coming from its pipeline are strong. It is continuing to progress delivery of its five-year strategy to drive future growth and profitability.