Updates

EcoAnimal Health

February 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Animal drug group Eco Animal Health has been disappointing with the chief cause being the collapse in China pig prices, which fell from CNY (Chinese Renminbi) 35 / kg in January to 10 / kg in October before a slight recovery. That fall was effectively below the cost of farmers’ production and this has resulted in a significant reduction in China’s breeding herd. As a result demand for its flagship drug, Aivlosin (antiobiotic for respiratory and enteric infections in pigs and poultry), collapsed. This in turn meant interim results would be below expectations, leading to eps forecasts cut to 5.6p, 6.2p and 7.8p between FY’21-’23. China & Japan, which had represented 56% sales in FY’21, fell to just 41% sales in H1 ’22 and dragged ...

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