Soaring R&D spend puts pharma Teva into the red
Soaring R&D costs resulted in the Irish arm of generic drug maker Teva Pharmaceuticals recording a pre-tax loss of $33.2m (€30.3m) in 2014.
Teva is the world's largest generic drug producer and accounts filed by Norton (Waterford) Ltd to the Companies Office show that revenues increased from $479m to $559m in 2014.
The $33.2m pre-tax loss followed a pre-tax profit of $26.4m in 2013.
R&D costs in 2014 rose from $31.34m to $102.39m, while numbers employed increased from 496 to 512 during the year.
The directors' report said they are satisfied with the progress that Norton (Waterford) Ltd has made in the last 12 months and look forward to continued progress in the next 12 months.
The firm's Waterford plant is of major strategic importance within the Teva manufacturing network and is responsible for the manufacture and development of respiratory products for supply to the United States and other global markets.
On the firm's R&D spend, the directors state that the company "is currently undertaking research and development into global respiratory products and is committed to maximising and sustaining long term growth opportunity for Teva by bringing to the market respiratory products utilising dosage forms and delivery systems that best meet patients' needs".
Staff costs increased from $49m to $53.6m. The loss takes account of combined non-cash depreciation and amortisation costs of $80m. The loss also takes account of $147.85m paid out in royalties in 2014.
The firm also made an actuarial loss of $36.8m on its pension scheme in 2014.
Shareholder funds stood at $1.37bn.