Pharma losses take lustre off 200 new jobs

Plans to create 200 new jobs in household storage and online retail businesses failed to lift the gloom as two pharmaceutical companies announced that close to 400 jobs are at risk.

Smart Storage, a company that specialises in under-stair storage solutions is creating 100 new jobs in Britain and Ireland over the next 18 months. The former Dragons' Den entrant said 60 of those roles would be in its Irish operation in Wicklow.

Managing director Paul Jacob said: "What started as a nice storage idea is now a multimillion euro business."

Having turned over €110,000 in 2011, the company has grown sales to €3.5 million. It secured a €65,000 investment on the RTÉ TV show from Norah Casey, and now employs 50 people.

Online retail

Mr Jacob said the new staff would be needed as Smart Storage is on target to sell more than €7.5 million of its product on the back of new design patents for Europe, the US and Canada.

Online retailer Wayfair, which specialises in home furnishings and decor, is to create jobs across a number of areas as part of a major expansion in Galway.

The announcement was made as the company, which already employs 200 people in Ireland, officially opened a new 30,000sq ft European operations centre in the Mervue Business Park.

Wayfair generated $2.25 billion in net revenues for full-year 2015 and $747.3 million in net revenues for the first quarter of this year. The company, established in 2002 and based in Boston, employs more than 4,604 people globally.

However, the pharma sector was hit by a double whammy as Swiss group Roche confirmed the closure of its Clarecastle plant in Co Clare with the loss of 240 jobs and a provisional liquidator was appointed to Clonmel-based Suir Pharma, putting 134 jobs at risk.

Workers at Roche Ireland Limited, a Swiss-based subsidiary of the Roche Group, were called to a site meeting yesterday.

There had been speculation that management would have news of a buyer for the plant.

However, staff were told that no such deal could be agreed with a major pharmaceutical company, reported to be Panther.

As a result, in line with a decision announced last November following a review of Roche’s worldwide manufacturing network for small molecules, the Swiss group will close the plant.

Liquidator

In

Clonmel

, Suir Pharma Ireland Ltd, which has been making generic medicines for nearly 40 years, is insolvent, the High Court was told.

In court, the company cited losses of €4.9 million during the 15 months to March 2015, and a large drop in sales in the US market late last year, for its difficulties. It projects further losses in both 2016 and 2017.

Its parent company, Slovakian group Saneca, is not willing to fund the company and it was left with no option other than to apply to the court for the appointment of a provisional liquidator.

Mr Justice Michael Twomey said he was satisfied to appoint insolvency practitioner Michael McAteer of Grant Thornton as provisional liquidator of the company.

Saneca Pharmaceuticals bought the business last year from Munich restructuring company Mutares for an undisclosed amount.