Thermo Fisher doubles profits on back of covid treatments

The firm recorded a revenue boost 'due to the sales of products addressing the diagnosis and treatment of covid'.

The main Irish arm of pharma firm, Thermo Fisher Scientific, last year received a once-off pay-out of €10m to settle a dispute relating to the interpretation of certain payments.

New accounts show that before the payment was received, Thermo Fisher Scientific Cork Ltd’s pre-tax profits more than doubled to €17.6m in 2021.

This followed revenues surging to €173.82 in 2021 which followed revenues of €141.22m for the prior 15-month period. Revenues on a like-for-like basis increased by 54% in 2021.

The firm recorded the revenue boost “due to the sales of products addressing the diagnosis and treatment of covid”.

'Long-term prospects remain excellent'

They state that while positive impacts continue into 2022, the duration and extent of future revenues from such sales are uncertain and dependent on customer demand.

The directors stated that it provides products and services that help analyse, diagnose and protect from covid-19.

The directors state that “the company believes its long-term prospects remain excellent given the attractive markets served, its industry-leading position and proven growth strategy".

On the €10m settlement payment, the directors state that in May 2022, the company received the payment in order to settle a dispute relating to the interpretation of certain agreements.

The directors state that “the payment represented a full and final settlement of all disputes with this party”.

In Ireland, the business operates across many of Thermo Fisher Scientific’s business areas — from manufacturing Active Pharmaceutical Ingredients (API) to Clinical Research, Life Sciences, Analytical Instruments, Specialty Diagnostics, and Customer Channels, and employs over 1,100.

500 Cork employees

The firm’s Cork site is the company’s largest site here with over 500 employees involved in the development and manufacture of API of life-changing and in some cases life-saving medicines.

The US-headquartered business also employs 400 employees at its laboratory services facility in Athlone.

Numbers employed at the Cork-based company increased from 427 to 480 in 2021 with 404 in manufacturing and 76 in administration as staff costs for 2021 totalled €54.4m.

The profit for 2021 takes account of non-cash depreciation, impairment, and amortisation costs of €14.5m.

The firm recorded operating profit of €18.64m in 2021 and interest costs of €1m reduced profits to a pre-tax profit of €17.6m.

The company recorded post-tax profits of €16.9m in 2021 after paying corporation tax of €694,000.

The firm would have been liable to a corporation tax bill of €2.2m but a Research and Development tax credit of €1.76m helped reduce the corporation tax bill.

Accumulated profits at the firm at the end of December 2021 totalled €24.87m.