Severance costs hit operating profits at Irish arm of pharmaceutical firm Roche
Roche said they welcome the allocation of €30m for new and existing medicines in Budget 2026 here. File photo: Stefan Wermuth/Bloomberg
Severance costs totalling €890,000 contributed towards a drop in operating profits at the Irish arm of pharmaceutical giant, Roche, which reduced by 9% to €4.09m in 2024.
New accounts filed by Roche Products (Ireland) show that the firm recorded the fall in operating profits as revenues rose by 7% from €124.68m to €133.57m.
The directors state that they are pleased to report that the company "delivered a strong level of growth in 2024”. They said "this growth was achieved in the absence of new product launches for the duration of 2024”.
The main activity of the Swiss-headquartered company is marketing and selling of Roche-branded prescription medicines in Ireland.
The company’s pre-tax profit of €5.39m was marginally ahead of the pre-tax profit of €5.3m for 2023 after benefiting from higher net interest payments of €1.3m in 2024.
The directors said they welcome the allocation of €30m for new and existing medicines in Budget 2026 here. They said: “These medicines will give patients the opportunity to benefit from access to therapeutic advances and give clinicians greater opportunity to improve patients' standard of care.”
They said the Budget 2026 funding, along with a recent commitment by the State to adhere to the Health Act 2013 legislation, represent significant steps forward for patient care in Ireland.
They state that in accordance with the act, there is a requirement for the HSE to make a decision on an application for reimbursement of a new medicine within 180 days.
The directors point out that currently Ireland is 24th out of 36 countries in terms of patients accessing the latest new medicines (EFPIA Wait Indicator). They said patients are currently waiting between 426 and 600 days for new medicines in Ireland that are subject to a full health technology assessment.
They said:
On the company’s own financial performance in 2024, the directors state that “the three key drivers of growth in 2024 were Vabysmo in ophthalmology, Ocrevus in multiple sclerosis and Evrysdi for the treatment of spinal muscular atrophy.”
They said: "Breast cancer medicine Phesgo, launched at the start of 2023, showed significant growth, continuing the company’s strong presence and heritage in the oncology market."
They also highlight that Hemlibra, for the treatment of haemophilia, showed continued growth in 2024, albeit at a slower rate than in 2023.
They said: “This is a product which has a transformative effect on the lives of patients with haemophilia, so it is rewarding to see this product delivering benefit to an increasing number of patients in Ireland.”
They state that January 2024 saw the entry of a biosimilar competitor to the company’s drug RoActemra, which is for the treatment of inflammatory and immune diseases.
The company said the required 37% price cut under the industry’s pricing agreement with the Department of Health reduced sales of what had been one of the company’s largest products in turnover.
They said: “Continued erosion to biosimilars was experienced across off-patent cancer medicines.”
The company recorded post-tax profits of €4.44m after incurring a corporation tax charge of €954,000.
Numbers employed at the firm in 2024 reduced from 85 to 80 and staff costs increased from €12.03m to €14.19m, which included the €890,000 severance costs charge.
Directors’ pay increased from €1.45m to €1.62m, comprised of €1m in salary and bonuses, benefits in kind of €544,000 and €67,000 in retirement benefits.
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