Medeva's prescription sees healthy advance

MEDEVA, the fast-growing niche pharmaceutical manufacturer, exceeded most analysts' expectations yesterday when it disclosed 1992 pre-tax profits 115 per cent higher at pounds 36m on turnover 75 per cent up at pounds 144.2m.

The group's acquisition-driven strategy makes it difficult to estimate the underlying level of sales growth, but Bernard Taylor, the chairman, estimated it had been more than 20 per cent in 1992.

Medeva has expanded rapidly over the past three years by buying products that are too limited to interest the giant pharmaceutical companies but which can justify exploitation by Medeva's equally fast-growing sales force.

Having initially concentrated on the US and UK markets, Medeva has recently turned its attention to Europe. Last month it made its first European acquisition, paying pounds 11.6m for the French company Institut de Recherche Corbiers, although Germany is at the top of its list.

'We need Germany,' Mr Taylor said. 'It's the third-largest market in the world.' He admitted that it was a difficult country in which to make an acquisition: 'There tends to be more of an emotional tie between owners and their businesses there.'

Medeva has just recruited William Bogie from Hoechst, the German chemicals group, to be in charge of European operations. Mr Taylor said the fact that he had previously been working in Germany was a coincidence - 'it's a bonus, though'.

Earnings per share were up 54 per cent at 12.9p and the board proposes a final dividend of 1.5p for a total payout 50 per cent higher at 2.25p (1.5p). The shares rose 8p to 235p.

'The results were very good and the outlook is positive,' said Stewart Adkins, pharmaceuticals analyst with Lehman Brothers. Mr Adkins has raised his forecast for 1993 pre-tax profits by pounds 3m to pounds 53m.