'Economic heart of Athlone'

Elan is not just a significant employer in Athlone, but a source of economic pride to the midlands town, according to the president of the local Chamber of Commerce, Mr Healy Hynes. "Athlone is the home of the company. It was formed here. It started here and it went on to become a world leader in its sector. So it has a part in the heart of Athlone as well as the economic heart," he said.

Mr Hynes added: "The recent relocation of the IDA Ireland pharmaceutical healthcare division to Athlone would indicate that there is probably an expanding role for the town in the niche of healthcare and pharmaceuticals."

Mr Hynes said it was too early to say how the dramatic fall in the company's share price might affect the economic prospects of the town. Many of the 800-plus employees at the factory hold shares or stock options, and the 40 per cent drop in the value of their holdings could affect their spending power. As an estate agent in the town, Mr Hynes is well aware of this, but he said it was too early to call at this stage.

"Most of this only transpired in the last 24 hours or, if you stretch it, in the last seven days, so it's probably too early to call how things are going to work out," he said.

As well as the workforce employed directly, many more are employed on a sub-contracting basis on development being carried out on the factory, Mr Hynes said, adding that he did not expect job losses as a result of Elan's situation.