Galen stuns brokers with 10.3% sales increase

NORTHERN IRELAND pharmaceutical group Galen Holdings yesterday continued its three-year run of beating brokers’ forecasts.

The company recorded an increase in sales to stg£201 million for the year to the end of September from stg£182.6m for the previous year, an increase of 10.3%. It made pre-tax profits of stg£101 million. Dolmen Butler Briscoe analyst Ronan Wallace said: "Galen has met or exceeded expectations in each quarter over the past three years."

Mr Wallace said operating profits generated by the firm generated stg£63.7m, an increase of 46.8% over 2001.

He said: "Sales of its top three products Ovcon, Doryx and Estrace Cream were stg£34.7m, stg£29.7m and stg£23.6m for the year, an increase of 27%, 103% and 16% respectively."

Goodbody Stockbrokers analyst Ian Hunter, rating the stock a buy with a price target of stg£7, said margins had greatly improved as a result of the stepout of the services sector and the revenue increase for the year was 10.3% to stg£201.5m. Galen opened at stg£4.70 yesterday.