The directors of Galen Holdings, the Northern Ireland pharmaceutical company, have raised £43.05 million (€68.3 million), through the placing of seven million of their shares. The company has also raised £36.9 million through the placing of six million new shares.

Galen said the directors' share sale was "principally at the behest of institutional investors to provide additional liquidity to the market". The main sales were made by Dr Allen McClay, chairman (who sold 2.5 million shares, realising around £15.4 million), Dr John King, chief executive (two million shares, £12.3 million), Mr Geoffrey Elliott, chief financial officer (0.75 million, £4.6 million), Mr Harold Ennis (100,000, £0.6 million) and The McClay Trust (1.65 million, £10.1 million).

The directors' holding is now reduced from 63 per cent (67 per cent if the two trusts are taken into account) to 55 per cent (58 per cent). The largest holding is held by Dr McClay with a 31.1 per cent stake, followed by Dr King with 17 per cent.

The release of these shares, said Dr King, is an attempt to address the volatility in the share price.

The two placings were made at an open price tender representing a 3.5 per cent discount on the previous day's closing price. The issues have been underwritten by Hoare Govett, a British stockbroking group.

The placing of new shares was made to provide additional working capital and to repay existing indebtedness, the group said. Dr King said a number of small acquisitions had left the group with gearing of 32 per cent.

The new funds, he added, will push the group into a nil gearing position and allow it to continue to make a number of small acquisitions.

Galen last month announced an investment of £39.7 million to create 300 jobs. The investment was on top of the £21.5 million expansion announced in February creating 125 jobs.

Its latest results showed a 30.3 per cent increase in profit before tax to £19.1 million from £14.6 million in the year to September 30th, 1999.