Abbott warns against further cuts to healthcare

ABBOTT Laboratories — one of the longest-serving foreign multinational companies with a presence in the state — has warned that further Government healthcare spending cuts could hamper its financial position here, after seeing pre-tax profits in its Irish operations fall by €9 million last year.

According to latest accounts, Abbott Laboratories (Ireland) made a pre-tax profit of just under €4.6m last year; compared to a profit of €13.7m in 2008.

After-tax profits fell by nearly 70% to €3.7m.

Turnover, however, increased from €93.6m to €97.7m.

In its latest set of accounts, the company said: “The overall performance of the Irish economy ultimately will have a direct impact on funding available for investment in healthcare in Ireland.

“Should there be a deterioration in the Irish economy beyond current forecasts, necessitating further healthcare budgetary constraints, the consequence may be a negative impact on company projections.”

The healthcare giant currently employs nearly 4,000 people in Ireland — across commercial operations in Dublin and Westport and manufacturing facilities in Donegal, Sligo, Longford and Clonmel.

One of the first international healthcare companies to establish a presence in Ireland, it has been here since the mid-1940s and has the widest Irish geographic network of any foreign-owned company.

Ireland represents the company’s largest manufacturing base outside of its native US.

Management claims to still be fully committed to its operations here and supportive through consistent investment.

It added that it remained confident of its ability to react to further financial pressures.

“Abbott Laboratories Ireland needs to continue to drive market growth and to compete against competition — either generic or branded — in order to grow market share.

Having operated in Ireland since 1946, Abbott has extensive experience in dealing with risks of this nature, while delivering strong performance.”


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