Profits at Novartis subsidiary soar 40pc
An Irish subsidiary of drug giant Novartis made a €12.2m operating profit last year, a 40pc increase on the 2009 figure, despite revenue declining 1.2pc to €112.2m in the period.
The Swiss group's Ringaskiddy unit manufactures active ingredients for a substantial number of the top 20 Novartis drugs, which include products such as Diovan, a hypertension treatment that began losing its patent protection in Europe earlier this year. Another of its top products is leukaemia medicine Gleevec, which generated $4.3bn (€3bn) in sales for Novartis last year.
Accounts just filed for the Novartis Ringaskiddy show that the division, which employs more than 400 people, paid €2.3m in corporation tax last year, leaving it with a profit for the year of €6.68m.
That was down on the €9.1m it reported a year earlier. It reported capital grants and research and development credits of €97,000 in 2010 -- down from nearly €1.9m in 2009.
The company has benefited from a 10pc corporate tax rate applicable to manufacturing firms. However, the subsidiary has been subject to the standard 12.5pc rate since the beginning of this year.
The directors note in the accounts that the Irish operation is "strategically important" to the Novartis group, but that future development will "depend on the success of the group's overall strategy".
Last month, Novartis said that it's hoping to reintroduce a pain management drug that was removed from the market four years ago after it caused liver damage in some patients.
The company applied to European regulators to have the drug given the all-clear as long as it's used on patients who have undertaken genetic testing that determines they are not prone to liver damage.
The company applied to the US Food and Drug Administration in 2009 to have the drug re-approved. That application hasn't yet been determined.