Irish division of Thermo Fisher Scientific gets once-off €10m

The Irish arm of pharmaceutical firm Thermo Fisher Scientific last year received a once off payout of €10 million to settle a dispute relating to the interpretation of certain agreements. .

Accounts show that before the payment was received, Thermo Fisher Scientific Cork Ltd’s pretax profits more than doubled to €17.6 million in 2021.

Revenues grew to €173.82 million in 2021 with revenues of €141.22 million for the prior 15-month period. Revenues on a like-for-like basis increased by 54 per cent in 2021.

The firm recorded the revenue boost “due to the sales of products addressing the diagnosis and treatment of Covid-19″.

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The accounts state that while positive impacts continue into 2022, the duration and extent of future revenues from such sales are uncertain and dependent on customer demand.

In a note with the accounts, the directors said that it provides products and services that help analyse, diagnose and protect from Covid-19.

The note said that “the company believes its long-term prospects remain excellent given the attractive markets served, its industry-leading position and proven growth strategy”.

[ Exports hit record level of €208bn in 2022 on back of buoyant pharma trade ]

On the €10 million settlement payment, the accounts state that, in May 2022, the company received the payment in order to settle a dispute relating to the interpretation of certain agreements.

The note stated that “the payment represented a full and final settlement of all disputes with this party”.

The Irish arm operates across many of Thermo Fisher Scientific’s business areas – from manufacturing active pharmaceutical ingredients (API) to clinical research, life sciences, analytical instruments, diagnostics and customer service. It employs over 1,100 workers.

The firm’s Cork site is the company’s largest site in the State with over 500 employees involved in the development and manufacture of active pharmaceutical ingredients. .

The US-headquartered business also employs 400 at its laboratory services facility in Athlone.

Numbers employed at the Cork-based company increased from 427 to 480 in 2021 with 404 in manufacturing and 76 in administration as staff costs for 2021 totalled €54.4 million.

The profit for 2021 takes account of non-cash depreciation, impairment and amortisation costs of €14.5 million.

[ Big pharma drives record €165bn worth of exports last year - CSO ]

The firm recorded operating profit of €18.64 million in 2021 and interest costs of €1 million reduced profits to a pre-tax profit of €17.6 million.

The company recorded post-tax profits of €16.9 million in 2021 after paying corporation tax of €694,000.

It would have been liable to a corporation tax bill of €2.2 million but a research and development tax credit of €1.76 million helped reduce the corporation tax bill.

Accumulated profits at the firm at the end of December 2021 totalled €24.87 million.