Pfizer sells off Schneider to Boston Scientific

Boston Scientific Corporation (BSC) has bought Schneider Namic in Tullamore, Co Offaly as part of a $2.1 billion (£1

Boston Scientific Corporation (BSC) has bought Schneider Namic in Tullamore, Co Offaly as part of a $2.1 billion (£1.5 billion) deal with the Pfizer Group. Boston Scientific, which manufactures high technology medical devices, already employs 1,600 people in Galway and last year announced plans to employ a further 2,050.

Meanwhile, Pfizer, which sold the Tullamore plant as part of its disposal of Schneider Worldwide, has indicated that it is considering the future of Howmedica which it also owns. This company employs 400 people in Limerick and Shannon, manufacturing orthopaedic devices such as artificial hip implants. Set up in 1969, it is very highly regarded in its field.

The Schneider operation in Ireland was previously known as Namic. It set up in Ireland in 1994 and was bought by Pfizer in 1995. It currently employs 40 people; the original plan was for it to recruit 150 people over five years. It was part of Pfizer's Medical Technology Group (MTG). It manufactures a range of devices and accessories including angioplasty products.

A spokesman for Pfizer told The Irish Times yesterday that the company was currently considering its options regarding Howmedica and another unit, American Medical Systems. The company was exploring "strategic options" he said, but no decision had been made.

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It is understood that selling the company is a definite option.

The spokesman said Pfizer had announced earlier this year that it was considering its options regarding MTG. He said these were very strong businesses but that the environment for medical devices was changing radically. He said it was a very competitive sector and an increasing amount of investment was needed to keep pace with changes in the industry.

Schneider, which is based in Switzerland and has facilities in the US as well as Ireland, had sales of $330 million last year. The Pfizer spokesman said his company had wanted to ensure Schneider continued growing and so had sold it to Boston. Pfizer has a manufacturing plant in Cork and employs in excess of 300 people. The company has hit the headlines recently because it makes the impotence drug Viagra. The drug's key ingredient is manufactured in Ireland. Economists said this week that record sales of the drug had contributed to the huge rise in the value of Irish exports in the first three months of this year. Pfizer's revenues last year were $12.5 billion.