6 hours ago
- Business
- Irish Independent
Profits at Novartis Ireland down to €8.4m as firm raises research and development spend
New accounts filed by Novartis Ireland Ltd show the company recorded the drop in pre-tax profits as revenues declined by 10pc from €268.3m to €242.3m.
Novartis Ireland is a significant employer in the healthcare industry here with over 1,000 employed in Dublin.
Accounts show revenues from the sale of goods declined from €139.86m to €137.55m while revenues from supply of business services decreased from €128.46m to €104.77m.
The directors state that revenues declining in pharma products sales were due to price and volume erosion of mature products.
Turnover relating to Novartis Corporate Centre (NOCC) services decreased by 18pc driven primarily by the reduction in functions related to Novartis's global initiative which launched in 2022 targeting a more focused pharmaceutical offering.
The company has a significant R&D arm in Ireland with numbers employed last year increasing from 224 to 270.
Last year, Novartis Ireland increased R&D spend from €26.4m to €34.9m.
And the company booked an R&D credit of €4.5m in the profit and loss account.
Overall numbers employed at Novartis Ireland Ltd reduced from 1,024 to 1,010 last year.
The company employed 663 in 'general and administration', 72 in marketing, sales and distribution and five in production and supply.
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Staff costs last year declined from €138.8m to €123.98m, that included €95.5m in wages and salaries and €4.7m in share-based payments.
Directors' pay increased from €992,000 to €1.35m made up of €1.27m in emoluments and €76,000 in pension contributions.
During the year, the company launched two new medicines aimed at treating cancer, Luxturna and Leqvio.
Under the heading of patient expiration and product competition, the directors state that 'the Irish Government continues to closely monitor pharmaceutical pricing and profitability, with pressure to control spending on HSE medicines'.
Shareholder funds totalled €88.8m, that included accumulated profits of €51.9m.
