Galen shareholders support takeover of Warner Chilcott

Galen Holdings, the Northern Ireland pharmaceutical group, expects to complete its £260 million share swap take-over of the Dublin-based pharmaceutical group Warner Chilcott by the end of September, according to chief executive Dr John King.

Speaking after an extraordinary general meeting in Belfast yesterday at which Galen shareholders overwhelmingly approved the deal, Dr King said Warner Chilcott shareholders would vote on the plan on September 4th. The next step would involve going to the Irish courts for approval for the financial arrangements, he said.

Each of the five motions put to the e.g.m. was approved by more than 90 per cent of the company's shareholders, Mr King said. "There is tremendous support for the transaction," he said. When the deal is completed Galen, which is already quoted on the Dublin and London stock markets, will be listed on Nasdaq in the US. Under the terms of the deal Galen is swapping 2.5 of its own shares for each Warner Chilcott share. Three quarters of the shares in the enlarged company will be owned by Galen shareholders. The balance of the shares will be owned by Warner Chilcott shareholders who include Microsoft chairman and the world's richest man Mr Bill Gates, pharmaceutical group Elan, US institutions and Warner Chilcott management. The companies are seen as a good fit. Each company specialises in women's healthcare products and the merger will give Galen access to Warner Chilcott's extensive sales network in the US. On completion Warner Chilcott chief executive Mr Roger Boisseneault will become chief executive of the merged company. Mr King, who currently owns about 17 per cent of Galen, will be chairman of the enlarged operation.

Current trading at Galen is "very positive" and in line with market expectations, Mr King said. Galen employs about 1,000 people. The acquisitive company has operations in Portadown in Northern Ireland and on three sites in the US as well as marketing operations in the Republic and in Britain. Last month Galen acquired Applied Clinical Concepts (ACC) and the pharmacy division of Duke Clinical Research Ltd in the US in a $13 million (€13.7 million) deal.