All change at Galen as profits double

Pharmaceutical company Galen has seen pre-tax profits double to $48m (€40.38m) in Q2 and directors are to recommend a name change to shareholders at year's end to Warner Chilcott PLC.

This reflects the Craigavon-based firm's now exclusive focus on the US market following the sale of its non-core businesses in the UK.

Galen will also alter its financial year-end reporting to calendar year-end in line with industry practice.

Product revenues increased by 55% to $138.2m (€€116.26m) from $89.2m (€75.05m), over the same period in 2003 with strong performances by Ovcon, Estrostep and femhrt.

Earnings per ordinary share, before amortisation of goodwill, intangible assets and exceptional items, increased to 29.6c, up 84%.

The Board declared the payment of an interim dividend of 1.44p per share, up 20% from last year.

The dividend will be paid on August 20 to shareholders on the register at July 23 this year.

During the quarter, the business generated cash of $67.5m (€56.80m).

Cash at March 31 2004 was $137.5m (€115.2m) while net debt at the end of the quarter was $105.8m.(€88.31m)

Speaking this morning, Roger Boissonneault, Chief Executive, 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 two sales forces in full operation in the field. 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," he added.