US biopharmaceutical company Gilead Sciences has pulled back from a planned €60 million investment in Dublin and has instead acquired the Cork manufacturing facilities of Nycomed for almost €34 million.

Last April Gilead had announced plans to build a €60 million manufacturing facility at Grange Castle Business Park, Clondalkin, Co Dublin, which would have created 70 to 80 jobs.

Last night a Gilead spokeswoman declined to comment on what impact the move would have on employment levels at the new combined entity, but said a "comprehensive integration plan" would be put in place following the merger.

She said that, by purchasing the Cork factory, Gilead was "accelerating the timeline" within which it could increase its manufacturing capacity.

Nycomed employs about 60 staff at its manufacturing and tabletting facility in Cork.

Gilead employs 80 people at a facility in Sandyford, Co Dublin.

Following the acquisition by Gilead of Nycomed's Irish subsidiary, it will move all of its Irish manufacturing to Cork.

Distribution and customer service operations will be retained in Dublin.

The transaction is expected to be completed by the end of September for approximately €33.9 million, although the final price will depend on "certain closing conditions", the firm said in a statement.

As part of the deal, Gilead will continue to manufacture Nycomed products at the Cork facility.

Nasdaq-quoted Gilead employs more than 2,500 people in North America, Europe and Australia, and specialises in developing medicine for infectious diseases such as hepatitis B, hepatitis C and HIV.

Its Irish operation is primarily involved in manufacturing HIV medication at reduced costs for countries in the developing world.

In a statement, the company said it would use the new factory for solid dose manufacturing and producing product packaging that meets EU regulations.

"Expanding our current Ireland operations to this new Cork plant will give Gilead manufacturing flexibility and will broaden the scope of our future manufacturing capacity," said Anthony Caracciolo, a senior vice-president with Gilead.

The Nycomed factory in Carrigtwohill, Co Cork, was established in 2005 as Altana Pharma, but the German chemical and pharmaceutical company sold its drugs business to Nycomed for €4.5 billion last year.