EPG acquisition boosts Intercare Group

UK-based generic drugmaker and parallel importer The Intercare Groupposted a 113% rise in turnover to L89.5 million ($131.5 million) for the first half of 2000, with operating profit jumping 159% to L5.7 million and pretax profits escalating 162% to L4.7 million; both profit figures are before amortization.

The company says that it has made a number of investments in pharmaceutical distribution businesses over the past 12 months, noting in particular the acquisition of European Pharmaceuticals Group in October 1999. EPG has now contributed a full six months to Intercare's interim results and its "performance has exceeded expectations following a highly-successful integration," the company says. The pharmaceutical division, despite the "abnormally-high generic product pricing levels experienced in 1999," increased turnover to L79.1 million, compared with L29.6 million the year earlier, and operating profit before goodwill rose from L1.8 million to L5.4 million, the firm noted.

According to its chairman, Ken Harvey, as a result of the recent sales of its non-core business, the Mobility Division, "Intercare is now fully focused upon the pharmaceutical market, where we see substantial opportunities for strong growth both organically and through acquisition." The sale was via a management buyout worth L12.3 million plus assumption of debt by the purchasers of L2.7 million, resulting in a net cashflow to Intercare of L15.0 million.