Pharma firm’s pre-tax profits up 37% to €66m as revenues top €600m

Pre-tax profits at the main Irish unit of pharmaceutical giant Servier increased 37% last year to €66.2m as revenues topped €600m.

Numbers employed at Servier (Ireland) Industries’ Arklow plant — which was subject to a fresh €47m investment four years ago — increased from 409 to 429 last year.

The principal activity of the French-owned group continues to be the manufacture of pharmaceutical products, primarily for the export market.

The firm, in the 12 months to the end of September last, paid a dividend of €40m to its parent, double the dividend paid in the previous year.

“During the year, sales increased significantly from the previous year. This increase was driven by increased production as a result of additional production facilities available to the group and also as a result of increased shipments to Bulgaria and Romania,” the company’s directors state.

“The group expects to increase its sales levels and further improve its financial performance in the coming year. A new product was validated for manufacturing this year and is to be launched to the market next year.”

The firm’s tax bill was €8.3m last year. The figures show after the post tax profits of €57.92m and dividend pay-out, the firm’s accumulated profits increased from €208.4m to €226.33m.

Staff costs went up by 4% to €26.02m. Directors’ pay increased marginally to €287,800.

In 2012, Servier’s Arklow site received a boost following the European Medicines Agency giving approval for Servier’s drug, Procoralan to treat patients suffering from chronic heart failure.

The drug — produced in Arklow — had already been used to treat patients with angina. Patients with heart failure who have elevated heart rates have poorer long-term survival rates than those with cancer, but Procoralan has dramatically improved not just life expectancy, but also quality of life.