DCC Vital has a significant and growing position in Britain in the sales, marketing and distribution of pharmaceuticals and medical devices and is the market leader in these activities in Ireland.
Pharma - DCC Vital sells, markets and distributes innovative and generic pharma products in Britain and Ireland through the hospital, retail pharmacy and homecare channels. DCC Vital has been active in the pharmaceutical market since 2002, initially focused on intravenous hospital products. DCC Vital has been building its presence in the retail pharmacy channel in recent years including through the acquisition in May 2011 of the trade and assets of Neolab, a small British generic pharma business. This development was significantly accelerated during the year with the acquisition of Kent Pharmaceuticals (announced in December 2012 and completed in February 2013), a leading provider of generic pharma products to the British market.
Kent Pharma is involved in the development, manufacture, sales, marketing and distribution of generic pharmaceuticals for the British, Irish and international markets. It has a broad portfolio of its own licensed products with a particular focus on beta lactam antibiotics including penicillin V, flucloxacillin and amoxicillin, which are long established antibiotics typically used to treat bacterial infections such as throat, ear and respiratory tract infections. Kent Pharma is the market leader in these products in Britain and also operates a specialist beta lactam manufacturing facility located in Roscommon, Ireland (Athlone Pharmaceuticals). The balance of the Kent product portfolio covers a broad range of therapy areas. Kent has strong relationships with the leading retail/wholesale pharmacy groups and independent pharmacies in Britain. While Kent Pharma principally sells to the retail pharmacy channel, it also sells to hospitals, other generic pharma companies and international distributors.
Following the acquisition of Kent Pharma, DCC Vital now has a comprehensive portfolio of own and third party innovative and generic pharmaceuticals for the hospital and retail channels across a range of therapy areas including antibiotics, oncology, pain management, respiratory, haematology, emergency medicine and addiction.
DCC Vital also provides outsourced pharma compounding services to hospitals in Ireland, through its licensed compounding facility in Dublin, which is involved in the aseptic filling of oncology, pain management, antibiotic and paediatric nutrition products into patient ready dosage forms i.e. syringes or IV bags. The compounding facility services the national contract for paediatric nutrition in Ireland in partnership with Fresenius Kabi. DCC Vital has leveraged its compounding capability to expand its service offering into the provision of pharma homecare services, an underdeveloped area in Ireland. During the year DCC Vital, in conjunction with a subsidiary of United Drug plc, was awarded a contract to provide a national Outpatient Parenteral Antimicrobial Therapy (OPAT) Service, the first national pharma homecare contract to be awarded by the Irish public healthcare system.
Devices - DCC Vital has a market leading position in the sales, marketing and distribution of medical devices into Irish hospitals with an extensive, highly trained field sales force and strong relationships with senior management, clinicians and procurement professionals. The business has a developing position in the medical devices sector in Britain which was significantly enhanced last year by the acquisition of the Forth Medical Group in January 2012.
DCC Vital sells and markets a broad range of medical devices and consumables in areas such as woundcare, urology, procedure packs, critical care (anaesthesia, endovascular, cardiology, IV access), diagnostics, orthopaedics and neurology. Products are typically single use/consumable in nature. Sales of capital equipment represents only a very small element of total sales and typically relates to generating sales of consumable products, for example the sale (or placing) of diagnostic testing equipment in order to drive sales of the consumable test kits used in the equipment.
Logistics - DCC Vital is also a leading provider of value added logistics services in Britain, providing innovative stock management and distribution services to hospitals and healthcare brand owners/manufacturers focused principally on theatre products.
DCC Vital operates in the pharma and medical device markets in Britain and Ireland which are primarily government funded. Fiscal budgets in Ireland and, to a lesser extent, Britain have tightened in recent years and, in common with the majority of developed economies, the burden of care, particularly to support ageing populations, is growing. As a result healthcare providers are increasing their focus on cost saving opportunities and value for money. Public and private healthcare payers and providers are leveraging procurement scale through increased use of tendering, framework agreements, reference pricing and pharma formularies. They are switching to equivalent quality, lower cost generic pharmaceuticals and medical products as well as outsourcing activities deemed to be non-core. DCC Vital is well placed to benefit from these trends.
DCC Health & Beauty Solutions
DCC Health & Beauty Solutions is a leading outsourced service provider to the health and beauty sector in Europe with operations in Britain, and, following the acquisition of Vitamex Manufacturing AB during the year, in Scandinavia also. Its range of outsourced services is focused principally on the areas of nutrition (vitamin and health supplements) and beauty products (skin care and bath and body care). The service offering encompasses product development, formulation, stability and other testing and regulatory compliance as well as manufacturing and packing. DCC operates five licensed manufacturing facilities – three in Britain and two in Sweden and contract manufactures in a wide variety of product formats (tablets, soft gel and hard shell capsules, creams and liquids). The business continues to enhance its reputation and market share in continental Europe, especially in Scandinavia, Benelux and Germany.
Consumer demand for nutrition and beauty products has been robust through the economic downturn with continued demand for product innovation. More importantly, there is an increasing trend for health and beauty brand owners to outsource non-sales and marketing activities (including product development) and to streamline their supply chains. Further trends towards increased regulation and higher manufacturing standards add to the generally positive market background for contract manufacturing in the health and beauty sector. These trends favour well-funded contract manufacturers like DCC Health & Beauty Solutions which has the resources to invest in regulatory expertise, customer specific product innovation and high quality facilities.