Costs cause profits at Teva’s main Irish arm to almost halve to $154m

PRE-TAX profits at the main Irish arm of pharma firm Teva last year almost halved to $154m (€140m) in spite of revenues increasing.

Numbers employed at the firm’s Waterford plant reduced to 612 from 634, as revenues increased by 3pc to $878.56m from $853.2m in the 12 months to the end of December last.

Israel-headquartered Teva has confirmed that the Waterford site is one of the most successful across the group, but last year’s pre-tax profit represents a 49pc drop on the $302.6m pre-tax profit recorded in 2017.

The chief factor behind the drop was a €105m cost associated with a settlement of a collaboration agreement relating to the development, research, manufacture and commercialisation of certain respiratory products.

The firm also booked a €4.18m restructuring charge last year after the purchase of Actavis by Teva Pharmaceuticals.

According to the directors’ report, they consider the performance of the company during the year and its year-end financial position to be in line with business expectations.

The research and development (R&D) charge for the year was $31m, net of an R&D tax credit.

At the end of December last year, the firm had shareholder funds totalling $2.19bn that included accumulated profits of $871.26m.

Pre-tax profits take account of non-cash depreciation costs of $29m and amortisation costs of $62m.

Underlining its importance to the Waterford economy, staff costs at the firm last year increased to $60.3m from $54.16m.

Directors’ remuneration last year totalled $938,000, made up of $732,000 in emoluments, $115,000 in pension contributions and $91,000 in share-based payments.

Globally, Teva has faced a difficult number of years, where its stock price has fallen from more than $70 in 2015 to $6.98 today.