United Drug's turnover will exceed £500 million (€634 million) in 1999 on the back of increased contracts from major healthcare and drug firms, the company said yesterday.

Speaking at the annual general meeting, the chairman, Mr Martin Rafferty, said a good start had been made to trading this year and results were ahead of the same period last year.

The chief executive, Mr Jerry Liston, speaking after the meeting, said United Drug was expecting growth in all markets, particularly in Britain. Last year United Drug had a turnover of £406 million (€515 million) and pre-tax profits of £9.7 million (€12.3 million).

Mr Liston said the drug market in the Republic and Europe was "growing phenomenally" and this would contribute to turnover rise.

The company's distribution business would make a substantial contribution this year, he said, with a contract from Warner Lambert Consumer Healthcare providing "an important source of new revenue".

Mr Liston said the Irish distribution operation faced competition from several outside firms, but had a close relationship with pharmacists which was "an important advantage".

He disclosed that up to 30 per cent of the company's shares are now held by pharmacists.

The recent expansion of British multiples into the Irish market was "not a worry" for the company, he added.