Biotechnology firm sees pre-tax profit rise 24%

Pre-tax profits at the Irish arm of global biotechnology company Genzyme last year increased by 24% to €43m as revenues topped €1.18bn for the first time.

Company turnover has increased more than fivefold since 2007 when revenues of €219.3m were generated.

Accounts filed with the Companies Office show that Genzyme Ireland Ltd enjoyed the increase in profits after revenues rose 21%, from €980.4m to €1.18bn, in the 12 months to the end of December last.

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

In October of last year, Genzyme opened a €150m extension to its Waterford plant, trebling the capacity of its fill/finish line. It employs nearly 500 workers in Ireland.

The increase in pre-tax profits last year is due mainly to a sharp drop in selling, marketing, research, and development costs, going from €68.4m to €23m.

The firm’s cost of sales last year increased from €875.5m to €1.11bn.

The figures show that Genzyme more than trebled its R&D spend last year to €5.9m. Emoluments to its four directors last year rose from €1.15m to €1.22m.

The company paid €6.8m in taxes last year following €8.3m paid out in corporation taxes in 2010. Operating profits increased by 30%, from €36.6m to €47.6m, last year.

The profits take account of a non-cash cost of €18.7m and €3.9m in the impairment of tangible fixed assets.