Galen Holdings, the Northern Ireland pharmaceutical company, increased its pre-tax profits by 26 per cent to £9.5 million sterling (€14.4 million) in the six months to March 31st, 1999. The interim dividend has increased from 0.44p to 0.55p.

Chairman Dr Allen McClay said the group was in a strong position to continue growth in the second half.

"Our business is broadly based and demand in the markets in which we operate is strong. . . the business is well placed to continue to drive forward," he said.

Sales rose from £24.1 million to £31.05 million. Reflecting real growth, earnings per share grew from 4.84p to 6.19p.

Dr McClay said the first application for a marketing authorisation for its oestrogen-only intravaginal ring, for the treatment of menopausal symptoms, "was a milestone".

Also, the group completed the acquisition of Interactive Clinical Technologies of Princetown, New Jersey, last month whose activities will now be expanded into Europe.

Galen said it remained open to the possibility of a merger that would raise its international profile.

"Although we would view as very attractive some form of merger with an organisation that would give us a more international presence, we wouldn't be pushed into it until the right merger was in place," chief executive Mr John King said.

"It would have to be a merger that was not disruptive to our core business," he said.

Mr King said Galen was "still very good friends" with European group Ferring Pharmaceuticals with which it was in abortive merger talks last year.

He said the company's focus was to grow the services side of the business organically or through acquisitions "to provide new technology-driven services, and improve existing ones, for the pharmaceutical industry".

On the product side, he said Galen had a very strong presence in Britain and Ireland and was continually working to increase that presence.

A chemical synthesis plant in Craigavon, Co Armagh, had only recently started operating, Mr King said, and was expected to contribute significantly to profit and turnover next year.