Pre-tax losses at Roche jump fourfold to €12.3m

RESTRUCTURING costs totalling €6.8 million led to pre-tax losses at the main Irish unit of pharma giant Roche increasing almost fourfold to €12.3m last year, new figures show.

According to returns just filed with the Companies Office, they show that the Swiss-owned Roche Ireland Ltd recorded the increase in losses after revenues dipped by 9.5% from €74.5m to €67.4m in the 12 months to the end of December last.

The figures show that the company’s performance was hit by a €6.8m restructuring charge as a result of making over 25 redundancies as part of a global restructuring.

The restructuring charge includes a net pension impact of €3.5m. The reductions were “in response to future lower production demand, which aims to optimise operating efficiencies across the Roche group worldwide”.

At the end of 2010, the firm had accumulated profits totalling €95.4m.

The company had net assets totalling €101.7m at the end of last year.

The company’s post-tax loss for the year was €11.1m after it received a tax credit of €1.2m.

According to the directors’ report “the company’s primary focus for 2011 will be to continue to supply the fine chemical products to Roche group companies. Meeting global cost and headcount reduction targets will also be a key focus for 2011.”

However, the company recorded a cash surplus last year as the loss for 2010 includes the non-cash depreciation cost of €13.6m.

The figures show that the company’s wages and salaries amounted to €17.8m last year compared to €18m in 2009.

Roche is a significant employer in the Co Clare village of Clarecastle with a staff of 224 in production; eight in administration and seven in management.

According to the directors’ report, “the principal risk and uncertainties facing the company include the Roche Group’s identification of replacement products for existing group products that have come off patent and adjusting the cost base in line with lower levels of production”.

Roche’s site in Clarecastle is a small molecule pharmaceutical production site.

A capital investment at the plant of €6.4 million in 2009 resulted in Roche commencing production of a new drug there last year. The company recently lodged plans for an extension to the plant’s production area.