United Drug set to report double-digit growth

UNITED Drug said operating profits and earnings for the six months to the end of March should be ahead of last year’s first-half figures and are likely to deliver double-digit growth.

The pharmaceutical wholesale group - whose financial year ends in September - yesterday said the company achieved good revenue growth in each of its four divisions in the first half of the year.

That was in line with expectations and followed good first-quarter growth.

Its three acquisitions, completed last year - including In2Forcus, TD Packaging and Presearch - are all on target to deliver their good first year contributions, the group said.

United expects the strength of its trading performance to continue for the rest of the year.

The group delivered a 13% rise in pre-tax profit to €49.2 million in the year to September 31, 2005.

Then the group said its wholesale division in Ireland increased profits and turnover and attributed the performance to an ageing and growing population.

Both were underpinning growth, while “doctor only” medical cards would drive demand for drugs in the years ahead, it said.

In its update yesterday it said talks between the Health Service Executive and partners in the pharmaceutical supply chain have begun and a new deal covering the pricing and reimbursement of medicines which should be in place before the end of 2006.

Shares in the company were down 2c at €3.