Dechra Pharmaceuticals PLC (LON: DPH) has announced the implementation of a hard Brexit mitigation plan. The company has emphasised that the financial impact of this is irrelevant.

After the announcement, shares dropped by as much as 21%. This is their lowest figure since early March.

Founded in 1997, the company is an England-based manufacturer of veterinary products with its headquarters in Northwich. Dechra Pharmaceuticals is organised into two divisions; European Pharmaceuticals and US Pharmaceuticals.

The hard Brexit mitigation plan include an EU based laboratory testing facility and staff for batch testing and the transfer of product registration to an EU-domiciled legal entity. As a result, an upfront investment of £0.2 million in capital and £1 million in one-off expenses will be required. Additionally, the company has added that additional costs of roughly £0.8 million is required if EU-batch testing and increased customs duty is required.

Dechra Pharmaceuticals have said: “Our current view on the potential changes that may result from Brexit is: in terms of manufacturing and product registration, Dechra is accustomed to trading with multiple countries and different rules and legislation; despite the possible additional administrative burden, our distribution model can adapt to changes in tariffs and duties; our business is naturally hedged and diversified, which helps in a period of economic uncertainty and exchange rate volatility; and we will monitor the impact on workforce and global mobility to maintain an effective system for resource planning.”

The company will continue to assess the potential risks of Brexit as the process develops.