Turnover trebles at Genzyme Ireland

TURNOVER AT the Irish arm of global biotechnology giant Genzyme more than trebled to €596.4 million in 2007 from €219.3 million a year earlier.

However, Waterford-based Genzyme Ireland Ltd reported a 20 per cent fall in pretax profits, dropped to €17.2 million from €21.7 in 2006. The decline is due mainly to a sharp rise in “cost of sales” from €170.4 million in 2006 to €536.4 million.

Operating profits fell by a more moderate 4 per cent to €25.1 million. A trebling in revenue from royalties – to €249.7 million from €80.4 million a year earlier – underpinned the dramatic rise in turnover.

Last year, the company – which produces and distributes healthcare products – announced a €130 million investment at its Waterford operation that created 170 high-skilled positions.

The company’s products and services are focused on people suffering from debilitating diseases: rare inherited disorders, kidney disease, orthopaedics, cancer, transplant and diagnostic testing.

The accounts show the company had shareholder funds at the end of 2007 totalling €149 million, including €32 million in accumulated profits.

The directors’ report stated that turnover for the year “was primarily driven by increased demand for the company’s existing healthcare products and the introduction of new products which the company began processing through their facility during the year”.

The accounts show the company employed 319 at its plant in 2007, an increase of 36 on the 2006 total of 281. Its wage bill jumped 31 per cent from €15.92 million to €20.94 million in 2007.