Profits double at Galen on back of recent purchases

Profits more than doubled at Galen in the quarter to the end of March, according to results issued by the pharmaceutical firm yesterday.

The performance, which was driven largely by products acquired by Galen over the past year, means that pre-tax profits for the first half of Galen's year almost tripled to $97 million (€81.75 million).

The growth came on first-half turnover of $279 million, which was ahead of the same period in the previous year by 77 per cent.

Galen chief executive Mr Roger Boissonneault described the results, which were ahead of analysts' expectations, as "very solid". He said the US market, where Galen is now fully focused, offered "excellent opportunity for growth".

The company will pay a dividend for the six months ending on March 31st of 1.44p per share, up 20 per cent on the previous year. Shares in Galen fell by 1 per cent to 763p in London in a generally weak market.

It emerged yesterday that Galen is changing its name to Warner Chilcott, the "operational title" that the firm has long been using in the US. The Galen name will continue to be used on some of the UK products that the firm has sold to its founder, Mr Allen McClay, in recent months.

A breakdown of the latest results shows that while sales of Galen's oral contraceptives were strong over the second quarter, the market was weaker for its pre-menstrual treatment, Sarafem.

This drop in Sarafem sales was attributed in the main to high stocks among wholesalers that bought the drug in advance of a price increase.

Galen said it was seeing a stabilisation in demand for its hormone replacement therapy (HRT) drugs after a two-year decline.

The company is seeking to develop a lower dose version of its key Femhrt drug in an effort to satisfy shifting market appetite in the area.