Biotech firm sees profits fall 25%

Pre-tax profits at the Irish arm of global biotechnology firm Genzyme fell 25% last year, despite revenues topping €1.2bn.

Accounts filed with the Companies Office show that Genzyme Ireland Ltd recorded the decrease after revenues continued their upward trend, rising from €1.18bn to €1.28bn in the 12 months to the end of December last.

The firm’s pre-tax profits decreased from €43m to €32.3m in the period.

Established in Waterford in 2001, Genzyme Ireland is the primary distribution centre for many of Genzyme’s major treatments. Its products and services are focused on rare inherited disorders, kidney disease, orthopaedics, cancer, transplant and immune disease, and diagnostic testing.

In 2011, French pharma giant Sanofi-Aventis bought Genzyme for $20.1bn.

The figures lodged with the Companies Office show that Genzyme Ireland Ltd employed 477 last year.

The plant at Waterford has shown rapid growth in recent years, with the company’s turnover increasing more than fivefold since 2007, when revenues of €219.3m were generated.

The drop in profits last year was attributed to a €22m charge relating to an impairment of tangible fixed assets of €21m, with the cost of decommissioning impaired assets of €996,000.

R&D spend more than doubled last year, rising from €5.9m to €11.7m.

Emoluments to the firm’s four Irish directors — general manager Dominic Carolan; accountant William Murphy; manufacturing director, Patrick O’Sullivan; and HR director, Paul Shanahan — last year doubled to €2.4m.

Mr Shanahan and Mr O’Sullivan resigned as directors last July.

Genzyme Ireland’s gross profit increased by 40%, from €80.2m to €112.3m. Operating profit fell 28%, from €47.6m to €34m, last year. Interest payable of €1.7m further reduced profits to pre-tax profits of €32.3m.

Genzyme Ireland had €160.2m accumulated profits at the end of last year.