United Drug has said it is on track for another year of "solid growth", while it also hopes to make further acquisitions.

Chairman Ronnie Kells told shareholders at yesterday's annual general meeting that the company had enjoyed "a very good start to the year with profits in the first quarter well ahead of the same period last year".

United Drug's wholesale business, which enjoyed a market share of 44 per cent in the Republic and 50 per cent in Northern Ireland last year, has continued to make gains at the expense of its rivals, while its three recent acquisitions were performing well, he said.

The company remains on the lookout for further deals, particularly in its medical and scientific division and in contract sales outsourcing. "In the coming 12 months, I think you will find there will be other acquisitions coming into the company," Mr Kells said.

United Drug chief executive Liam Fitzgerald said the company would be prepared to more than double its balance sheet gearing, which currently stands at about 20 per cent, to fund the right deals. "We would be happy to see that up to 50 per cent and beyond," he said.

Mr Kells said the company's pension fund liability of about €10 million would be addressed in the coming months. It can either make a single payment to extinguish the deficit or increase contributions to the fund over a period of time or a combination of both.

On the Government's review of drug pricing, Mr Fitzgerald said the company did not know what the outcome would be. It is also waiting to see whether it stands to win a distribution deal with Boots' Irish operations after the UK chain agreed to buy Alliance Unichem, with which United Drug has a joint venture.