Pre-tax profit jumps 71% at Galen Holdings

A combination of new products and strategic acquisitions boosted Galen Holding's unadjusted pre-tax profits by a record 71 per cent to £41.6 million sterling (€69.07 million) last year, according to its latest financial results.

Northern Ireland's rising pharmaceutical star yesterday unveiled healthy annual results, which showed a 112.4 per cent hike in sales to £183 million.

The group's pre-tax profit after exceptional items and goodwill amortisation from new product acquisitions fell to £16.9 million from £19 million last year.

Galen, which specialises in women's health products, urology and determatology, highlighted its expanding presence in the United States as one of the key drivers for its dramatic growth. The Craigavon, Co Armagh-based pharmaceutical group acquired Warner Chilcott, a pharmaceutical group in the United States, in a £300 million deal last year. According to Dr John King, executive chairman of Galen, the acquisition has helped the Northern Irish group establish a strong pharmaceutical base in the US.

More than 60 per cent of Galen's total sales came from the US last year and more than 700 people out of the group's total 1,793 strong workforce are now employed in the US.

Dr King said Galen intended to focus its energies on the US market. "We are looking to the US market for continued growth. It has made a very strong contribution to our latest results and will continue to do so in how we take our business forward.

The group is currently seeking New Drug Application approval for its Menoring intra-vaginal HRT ring in the US and is also pursuing European registration for the product.

Although its main business driver is the US, Dr King said the group's Irish and UK operations would continue to play a key role.

One of the highlights for Galen during the last 12 months was its international share issue, which successfully raised £185 million. Forty per cent of the offer was earmarked for investors in the United States.

The new finance is earmarked for strategic product acquisitions, such as its recent £67.2 million purchase of Estrace tablets from Bristol-Myers Squibb.

"Galen has made great progress towards the creation of an international speciality pharmaceutical company. We have a strong balance sheet going forward which will help fund our continued growth," he added.