Shares in Galen, the pharmaceutical firm, took an early hit in both Dublin and London yesterday upon news that medical journal, the Lancet, was to publish a review of studies into the use of hormone replacement therapies (HRT).
Galen's shares fell sharply earlier this year when a US study suggested that the use of HRT could be linked to heart disease and breast cancer. HRT is an important part of Galen's business, although the company also sells contraceptives and drugs for skin disease.
The stock gave up almost 3 per cent on the Irish exchange when news of the latest publication emerged, hovering at €6.25 at mid-morning.
By closing, the losses had been largely recovered however, with shares closing down just 0.47 per cent at €6.39 as investors accepted that the review contained no new information. On the London exchange, the stock lost 2 per cent to close at £4.05 sterling (€6.40), again winning back most of its earlier decline.
Merrion Stockbrokers analyst, Mr Peter Frawley, said Galen's HRT drugs were of a different type to those linked with serious disease, with the company's prescription volumes unaffected by the publication of the initial HRT review in July. Mr Frawley retains a buy recommendation on Galen, based on a forecast of annual earnings of 20 per cent over the next two years.
