The pharmaceutical sector has been one of the high-flying sectors that has hit a somewhat rocky period over the past year. Irish investors in Elan Corporation have had some first-hand experience of the volatility of these shares.

Elan is still a small player in the world drugs business, but when one of the giants of the industry falters everyone takes notice.

Glaxo Wellcome, which has long been a favourite of many brokers, including some Irish brokers, announced that it no longer expects to achieve double-digit growth in sales this year.

Although pre-tax profits increased in the first half to £1.33 billion sterling (€2 billion), the shares declined sharply and are now 30 per cent below the peak price reached earlier this year.