The Investment Column: Galen
Friday 19 November 1999
Still, existing products should drive the sales line upwards. Ethical Pharmaceutical Services, which provides drug-trial services to larger pharma companies and accounts for 42 per cent of turnover, grew sales by 72 per cent to pounds 28m last year.
The slower-growing Ethical Pharmaceutical Products, which makes prescription medicines ranging from analgesics to respiratory products, grew sales by 19 per cent.
In recent years, the company has boosted its US presence. However, the moves overseas haven't gone entirely smoothly, and the group took a pounds 2.7m hit after its merger with Holland's Ferring Pharmaceuticals fell though.
While the services business should grow at around 40 per cent annually, it is the expectation of up to pounds 50m sales for the IVR, due for launch late next year, which keep the shares on a premium rating. The shares closed up 60p at 667.5p yesterday as the market warmed to Galen's prospects, though some of the sharp share rise can be attributed to the dismal 33 per cent free float. Management appear keen to rectify this, either by selling down their own hefty holdings, or issuing more shares to fund further acquisitions.
On analysts' expectations of 14.9p earnings per share this year, rising to 18.5p in 2001 when IVR sales begin, the shares trade on a forward multiple of 45. The shares are fully valued.
- 1 Tourist films plane's descent just metres above packed Caribbean beach
- 2 Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
- 3 World Book Day: Boy 'excluded' from school after dressing up as Fifty Shades' Christian Grey
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 GamerGate: developer Tim Schafer provokes rage with joke about online gaming activists at industry awards
Tourist films plane's descent just metres above packed Caribbean beach
Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
Isis 'bulldozes' Nimrud: UNESCO condemns destruction of ancient Assyrian site as a 'war crime'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Westboro Baptist Church couldn't picket Leonard Nimoy's funeral because they didn't know where it was
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Durham Free School: 'Creationism taught at' free school facing closure
End of the licence fee: BBC to back radical overhaul of how it is funded
Elif Shafak: Turkish author warns against rise of British nationalism
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£12 - £15 Hourly Rate: Jemma Gent: In this role you will report to the Head of...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...