Founder leaves healthier Medeva

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The Independent Online
IAN Gowrie-Smith, non-executive director of Medeva, the drugs supplier, resigned yesterday from the company he founded but is to be retained on a consultancy agreement worth pounds 900,000 over three years, writes Robert Cole.

The departure from the board of Mr Gowrie-Smith, formerly chief executive, confirms Medeva's shift in strategy over growth policy after a sharp reversal in its share price in July last year.

Medeva stock halved in value when the company warned on profits. Mr Gowrie-Smith grew Medeva by acquisition but the company wants to consolidate its position and to build business organically.

Mr Gowrie-Smith said he intended to build another pharmaceutical business outside Medeva.

Medeva announced taxable profits of pounds 22.1m for the six months to June, up from pounds 13m.

The company specialises in the manufacture of generic pharmaceuticals once the patent from the original developers has expired.

Bill Bogie, the present chief executive, said: 'Medeva is not immune to pressure on sales and margins arising from healthcare reforms around the world. However, as our products are generally in the low to medium price range we appear to remain relatively less vulnerable to the changes taking place in the industry.'

Earnings per share in the half- year rose from 3.8p to 4.9p. The dividend was lifted 22 per cent to 1.1p.

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