Galen profits rise as it turns attention to US with name change

GALEN HOLDINGS plans to complete its metamorphosis from an Irish pharmaceuticals group into a company focused on the US by changing its name to Warner Chilcott.

Galen, which specialises in women’s healthcare, yesterday posted a sharp rise in second quarter net profit, ahead of expectations.

Davy analyst Jack Gorman said: “To reflect its almost exclusive US bias, the company is proposing to change its name to Warner Chilcott and will change its year-end to December.”

He said Galen’s results were better than their forecasts, with EBITA rising from $34.8m to $72.8m on the back of a 55% increase in revenues to $138.2m. Adjusted diluted EPS advanced from 16.1c to 29.2c.

However, Mr Gorman said Sarafem revenues disappointed, at $14.1m versus its $19.5m forecast. The product was down 8.6% year on year.

“First quarter wholesaler buying and lower prescription demand was cited, and the company indicated that a full-year run-rate of circa $77m is an accurate reflection of trend revenues. Our existing forecast is $83.8m,” he said.

The group announced it had submitted a drug application to the Federal Drug Agency in March for a low dose version of femhrt, a combination hormone replacement drug as well as one for Doryx, a treatment for severe acne. The interim dividend rose by 20%.

Galen chief executive Roger Boissonneault said: “This was a very solid set of results for the second quarter. Following the acquisition of products last year, giving us additional presence in women’s healthcare, we are now strengthening our business around this expanded base.

“We have focused our product development activities to support these products, and we have recently acquired a manufacturing facility to ensure that we control our own destiny with regard to bringing new products to market. Our business is now fully focused on the US market where we see excellent opportunity for the continued growth of our business model.”