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United Drug splashes out

TIP UPDATE: United Drug makes a bigger commitment to Europe with its Pharmexx acquisition
July 30, 2012

Irish medicines wholesaler United Drug bulked up its European operations via the acquisition of Pharmexx, a Stuttgart-based pharmaceuticals distributor, for €28.7m (£22m).

IC TIP: Buy at 168p

The deal won't immediately add to earnings because a large-scale integration process has to take place, but City analysts reckon that Pharmexx will add 10 per cent to United Drug's bottom line in the long run.