The reputation of Craigavon pharmaceuticals company Galen Holdings as a burgeoning growth stock has received fresh support from sparkling financial results showing a 58 per cent profit increase to £11.4 million in the year to September 30th.

Galen shares rose 11p to a new high of 298p sterling, almost double the 150p price last July when the company was floated on the stock market through a £30 million share placing. The rise in the Galen share price since the flotation has occurred at a time when share prices have been under severe pressure in the "biotech" sector with some drug stocks falling more than 50 per cent.

Unlike research companies hoping to launch new products, Galen is an established and profitable business with strong cash flow supporting investment in new facilities at Larne and Craigavon as well as development work on new products.

Annual profits of £11.4 million sterling were about £600,000 higher than expected by analysts. Turnover rose 26 per cent to £39.3 million due to strong growth in ethical pharmaceutical products and service.

Dr Allen McClay, chairman, said the combination of strong cash flow, the £30 million share placing and "excellent" performance of the products and services operations had led the group to expand its activities "and to be confident that 1997-98 will be another good year for the company".

Further progress had been made in expanding the group's manufacturing facilities in Larne and work continued on the expanded Clinical Trial Services facility costing £10 million at Craigavon, he said. In addition, the group expects to strengthen its product portfolio with the launch of a number of new pharmaceutical products currently in the pipeline. First steps are expected to be taken in 1998 towards commercialisation of the group's Intravaginal Ring (IVG) drug delivery system for Hormone Replacement Therapy (HRT).