Healthcare services group UDG Healthcare said revenues and operating profits for the three months to the end of June were ahead of the same period last year.

Listed on the London Stock Exchange, the Dublin-based provider of services to healthcare manufacturers and pharmacies, has operations in 22 countries.

In an interim management statement today, the company said profit growth was being driven by a strong performance in its healthcare communications business Ashfield, which became the largest profit contributing division for the first time.

Ashfield now has "leading market positions" in the provision of contract sales outsourcing, healthcare communications and medical services to pharmaceutical manufacturers in major markets including North America, the UK and Europe, the company said.

UDG said its supply chain services business had put in a “solid” performance with profits flat on the previous period despite the challenging market conditions and the sale of the Specials business.

The impact of generic substitution in the Republic had been as expected in the quarter, it said, although the adverse impact of “direct to pharmacy” schemes had been higher than anticipated in the Irish market.

UDG acquired healthcare communications business KnowledgePoint360 for €105 million in March and specialist healthcare and scientific public relations businesses, Galliard and Nyxeon for €6.5 million last month.

Based on the underlying trading performance, the company reiterated its previous earnings, saying it expected diluted earnings per share for the year up to the end of September to be between 5 per cent and 9 per cent ahead of last year.

It said that it also expects to deliver a good underlying cashflow performance for the year.