Norbrook Laboratories, the Newry-based pharmaceutical company founded by Senator Edward Haughey, has reported a dramatic increase in profits in 1998 from £3.6 million sterling (€5.02 million) to £10.1 million (€14.09 million).

The profits were boosted by an exceptional item arising out of an insurance claim for £7.5 million in compensation for a prolonged interruption of one of the firm's production processes.

Operating profits were marginally weaker at £3.5 million against £3.9 million in 1997. In the 12 months to the end of July, 1998, turnover rose by 9 per cent from £34.3 million to £37.2 million.

The company, which is expected to float on the London stock market within the next three years, is Britain's largest independent pharmaceutical company and has production facilities in Newry and in Monaghan. Its international production operations include facilities in the UK and US, Thailand, New Zealand, Australia and South Africa.

Announcing the results yesterday, Senator Haughey said he was delighted with the firm's performance, particularly when so many companies in Northern Ireland and the UK are trading in difficult economic circumstances.

Norbrook produces medical and veterinary pharmaceuticals, undertaking research and the manufacturing of raw materials.

Its products are sold under its own brand names while it also has contracts to manufacture products for international firms.

It currently supplies nine of the 10 leading multinational pharmaceutical companies and sells its own-brand products in 110 countries.

It is planing to produce and distribute human medicines shortly with its first products expected to be launched this year. The new medical division is expected to have a significant impact on next year's figures with the company signalling that turnover will rise to £50 million.

"Norbrook's extensive ongoing research and development programmes ensure that we are at the leading edge of new developments in veterinary pharmaceuticals and our future plans in the area of medical pharmaceuticals will ensure that we remain competitive and successful into the new millennium," Senator Haughey said. Norbrook has over 7,000 registrations or licences to sell its products around the world and is the only company to be licensed by the US Food and Drug Administration to manufacture sterile veterinary injections outside of the US for import and sale there.

The company's biggest market is Europe, which accounts for 35 per cent of its total sales.