Galen Holdings, the Craigavon-based drugs company that numbers Bill Gates among its shareholders, has reported a 28 per cent increase in pre-tax profits to £24.4 million sterling (€40.45 million).

The figure for the year to the end of September does not take into account the costs associated with the £308.6 million acquisition of Warner Chilcott, the US drug group.

When £3.3 million in severance payments to Warner Chilcott executives are taken into account, pre-tax profits fall to £19.1 million, representing a more modest gain of 4 per cent.

The acquisition closed on the last day of the financial year so it made no contribution to either turnover or profit in the period, according to Mr Paul Herendeen, the executive vice-president of Galen.

But it should result in a doubling of turnover and earnings, he said. The firm was obliged, however, to take the cost of the severance payments in the period, said Mr Herendeen.

Earnings per share - not including the costs associated with the Warner Chilcott deal - were 15.5p, a gain of 23 per cent, and the board has declared an increased dividend of 2.07p per share compared to 1.65p last time, but the company's shares dropped €1.05 to €14.7.

Turnover grew by 28 per cent to £86 million with the growth coming from the two existing businesses: sales of branded prescription drugs and the provision of research and development services to the industry. Turnover in the pharmacy business was up 15 per cent despite an enforced reduction of the 4 per cent in the price of drugs by the National Health Service in the UK.

Two clinical service providers - ACCI and the pharmacy division of DCRI - bought in July for £10.2 million made a negligible contribution to profits said Mr Herendeen.