Roche Ireland's revenues hit in 'challenging year'

THE DECISION by Swiss pharmaceutical group Roche to end production of a key drug at its Clarecastle, Co Clare, plant led to a 30 per cent slide in revenues for the firm’s Irish subsidiary last year.

However, Roche Ireland’s pretax profits slipped by just 3 per cent to €26.6 million.

Accounts recently filed with Companies Registration Office show sales at Co Clare-based Roche Ireland fell to €102 million at the end of 2007, from €146 million a year earlier.

In a statement accompanying the accounts, the company blamed the fall in revenues to the cessation of the production of a key product – the “Dl Acid” drug – at the company’s Clarecastle plant in September 2006.

A spokesman yesterday described 2007 “as a challenging year for the Clarecastle site”.

According to the directors’ statement, the principal risks and uncertainties facing the company included the identification of replacement products for existing products that are due to come off patent in the coming years.

The accounts show operating costs fell from €119 million to €81 million last year. Directors shared €242,000 in remuneration.

The Irish subsidiary did not pay a dividend in 2006, but last year it paid €30 million in dividends.

This resulted in shareholders’ funds at the end of 2007 at €130 million.

The accounts show the subsidiary had accumulated profits of €124 million at the end of 2007.

The returns also confirm that €6.7 million was set aside for environmental works at the plant in 2007.