Schwarz Pharma losses hit €8.5m

Shannon-based pharmaceutical firm Schwarz Pharma recorded an operating loss of €8.5 million last year, according to accounts lodged with the Companies Office.

The accounts show that the firm increased its sales from €35 million to €41 million.

However, the cost of sales increased from €38 million to €45 million and the company's resulting operating loss for 2006 is € 8.5 million.

The company's profit and loss account showed a loss of €60 million at the end of the year after amortisation of €34 million.

Other factors include a cost of €11 million of interest payable, while €14 million was recorded as a non-operating expense.

This comes against the backdrop of the company investing more than €150 million in its Shannon operation with construction recently commencing on a new premises on the Westpark Business Campus in Shannon.

The accounts show that the company had intangible assets valued at €424 million. Its sales were split between €27 million in Europe and €14 million in the US.

Schwarz Pharma's employee numbers increased from 180 in 2005 to 201 in 2006, while staff costs increased from €10 million to €13 million.

According to a statement accompanying the accounts, Schwarz's product profile continues to show promise. It states: "The Rotigotine patch for the treatment of Parkinsons disease (Neupro) launched in 2006 in 9 markets: Germany, UK, Austria, Denmark, Ireland, Norway, Switzerland, Sweden and Greece. The outlook remains very positive for this product after a very successful launch."

The statement also continued that the years 2006-2008 will be transition years where the firm will expand from manufacturing purely generic products to a more expanded and integrated business model of development.