Forest Laboratories’ Irish subsidiary records loss

The main Irish subsidiary of pharmaceutical firm, Forest Laboratories, plunged into the red last year to record pre-tax losses of $138.42m (€126.29m).

This followed revenues at the Dublin-based firm decreasing by 36.5% from $2.48bn to $1.57bn in the nine months to the end of last December, compared to the prior 12-month period.

The loss followed a pre-tax profit of $426.4m in 2013, a negative swing of $564m.

The company is the licence holder to manufacture and distribute certain Forest Laboratories’ pharmaceutical products in the US.

In July of last year, Actavis, now known as Allergan, purchased Forest Laboratories’ global business for $28bn in cash and equity.

According to the directors’ report, the firm’s loss last year “was due to one-off charges, primarily impairment”.

The numbers employed by the Dublin-based subsidiary increased from 372 to 376 with staff costs decreasing from $39.2m to $25.26m.

The a firm recorded an operating loss of $150m and net interest receivable of $16.6m reduced the firm’s losses.

The company had shareholder funds totalling $3.6bn that included $2.32bn in accumulated profits. Research and Development costs last year totalled $355.67m.

The directors’ report states that in March, Allergen sold the product rights to two items, Daliresp and Tudorza Pressair, to AstraZeneca.

The inventory on hand and Intellectual Property was sold resulting in a loss of $7m. The directors state that the company shall continue to pursue licensing opportunities to further the growth of Allergen.