Shares in Northern Irish pharmaceutical group Galen have fallen to a 3½-year low amid ongoing concerns about the link between hormone replacement therapy (HRT) and cancer.

The shares fell by more than 11 per cent to €4.75 in Dublin yesterday as the release of a second medical report earlier this week fuelled fears about the link between HRT and ovarian cancer.

The report, published in the Journal of the American Medical Association, said oestrogen-only treatment after menopause ran a higher risk of ovarian cancer.

"The worry is about oestrogen-based products and their therapy is oestrogen-based," one dealer said.

The company declined to comment yesterday but is due to release results in early August and may address the issue then.

However, analysts said the US study was flawed and Galen's exposure to concerns about an increase in ovarian cancer was limited.

"Galen only targets women who have hysterectomies and the majority of those have had their ovaries taken out," said Merrill Lynch analyst Mr James Culverwell, who has a buy rating on Galen.

Company broker Goodbody said Galen shares were being hurt by association, as well as suffering from negative market sentiment towards the pharmaceutical sector.

"The bottom line is that their products are not the ones with cancer risks," Goodbody analyst Mr Ian Hunter said.

Shares in Galen have lost more than 30 per cent since July 9th, when a large study showed that women taking US-based Wyeth's hormone replacement Prempro had increased risks of breast cancer, strokes and heart disease.