United Drug purchases rival

UNITED Drug will hit its target of taking 40% of the British contract sales outsourcing (CSO) drug market with the purchase yesterday of NASDAQ-quoted Ventiv Health Inc in a €7.5m cash deal.

Ventiv Health, which is listed on the NASDAQ Stock Market has over 30 years experience serving the pharmaceutical and life science industries and has an extensive range of clients across the US and Europe.

The acquisition has been completed through Ashfield Healthcare Ltd, United Drug’s contract sales outsourcing division with operations in Britain and Ireland.

NCB brokers analyst David Marshall continues to rate United Drug a buy following the takeover.

“The acquisition of Ventiv Health will expand the market share of United Drug’s

existing CSO business in Britain, Ashfield Healthcare. Currently United Drug has a 30% market share in contract sales in Britain with Ventiv Health estimated to have less than 10% market share,” he said.

Goodbody analyst Ian Hunter said: “We have little figures to hand at present but at first glance would consider the acquisition will be accretive to earnings in the medium term. With possible integration and rationalisation charges through 2003, the effect on earnings will be marginal but we will look for greater upside in 2004.”

Commenting on United Drug’s third acquisition this year chief executive of United Drug Liam FitzGerald said: “United Drug’s strategy is to grow organically, and by acquisition of businesses which complement our existing core operations.

The acquisition of Ventiv Health’s British contract sales business will allow Ashfield consolidate its position as a leading service provider to the pharmaceutical industry.”