Healthy future for pharmaceuticals

Davy Stockbrokers has issued its first report on healthcare, forecasting upside for investors in Irish pharmaceutical and healthcare stocks.

Analyst Jack Gorman believes Bioglan offers opportunities for the value investor on the back of strong product deals. He also argues that now is the time to look at Galen, which produced strong third-quarter figures but which is trading 20 per cent below its pre-funding highs.

Resolution of regulatory approval for key drugs will be the key factor in whether Elan hits the broker's end-year forecast of $70.

United Drug and ICON, he argues, have less room to advance in the coming months, although their immediate prospects seem brighter than those of Trinity Biotech.

dcoyle@irish-times.ie