Pharmaceutical share prices 'set to rise'

THIS year will be one of steady but not spectacular share price growth in the pharmaceutical sector, according to Goodbody Stockbrokers, which believes the share price of the five main Irish pharmaceutical companies will increase in 2004.

Goodbody Stockbrokers analyst Ian Hunter has issued a major 81-page report on the sector, "Irish Pharmaceutical Sector On a High," which has been circulated to clients and investors this week. Despite rating Elan an "add," Mr Hunter put a monetary estimate on Elan's potential exposure to class action law suits lodged by disgruntled investors in the $50m to $295m range, but said an early settlement of these actions would be beneficial to the share price.

On the overall sector, Mr Hunter said improving product newsflow and a return to positive earnings growth across the sector will "outweigh patent and pricing pressures, resulting in a steady momentum in the sector through 2004."