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.
Sales of the tablet are set to fall again, say analysts
Met Police confirm there was a 'minor disturbance' and that no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Parties threaten resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
- 1 Indian footballer Peter Biaksangzuala dies after injuring spine doing somersault celebration
- 3 Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
- 4 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 5 Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
'Russian submarine spotted' by Swedish military off coast of Stockholm
Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver allegedly kicks gay couple off for kissing
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...