Surge in IVF demand boosts Irish profits of Virtus

A surge in the number of Irish couples opting for treatments such as in-vitro fertilisation (IVF) has contributed to a spike in profits at Virtus, the listed Australian company that is the largest service provider in Ireland.

Virtus owns three fertility clinics in Ireland, including Sims in Dublin and Cork and another clinic acquired from the Rotunda hospital in 2014.

In its full-year results announcement on Tuesday, for the period to the end of June, it noted the “outstanding performance” of its Irish operation, which accounts for the bulk of its international division, alongside Singapore.

Virtus said results at the division rose by almost 45 per cent in the year to more than $39.3 million (€26.5 million). It didn’t break out the earnings of its Irish division, but it said its international earnings were $5.7 million.

Irish arm makes about $6.2m

As earnings losses at the Singapore division were $500,000, this implies the Irish arm of the business made $6.2 million. Virtus said earnings in its Irish division rose by a third. Its clinics in Dublin and Cork oversaw more than 2,300 cycles of IVF last year, it said, an increase of a quarter on the year before.

In a conference call with analysts, chief executive Sue Channon and finance director Glenn Powers elaborated on the performance of the Irish business.

They said the expansion of Sims in Cork was a success and reported the company was satisfied with the integration of the Rotunda clinic, for which it paid €6 million.

Mr Powers responded to a question about its market share in Ireland to say that the value of the market is unclear, but Virtus thinks it has about “40-50 per cent” of the Irish market for assisted reproduction services.

“We are very happy with our Irish performance and we have had a very strong 24 months there,” he said.

IVF cycle costs €4,600

Virtus, operating as Sims, charges Irish people about €4,600 for one cycle of IVF, about €3,000 for egg freezing, and up to €11,000 for a cycle using a donor egg.

Ms Channon told investors that Virtus has no plan to open another clinic in Ireland, but said it would step up its marketing and promotional activity to capitalise on the booming demand for IVF.

Virtus, which had group sales of $261 million, entered the Irish market in 2014 with the purchase of 70 per cent of Sims, which was founded in 1997 by doctors Anthony and David Walsh.

Virtus says, “The duo were responsible for the country’s first IVF baby, first donor sperm IVF programme [and] first donor egg programme .”

The two doctors, who have retained the other 30 per cent of Sims, continue to run the Irish business for the Australian parent. Anthony Walsh was unavailable for comment at its main Dublin clinic on Tuesday.