The Irish arm of pharma firm, Takeda last year took a €37.2 million hit to profits after mothballing fresh manufacturing capacity at its Grange Castle site in south county Dublin.
New accounts show that Takeda Ireland Ltd sustained the €37.2 million impairment charge on its tangible assets after a group decision not to manufacture a new medicine, Alofisel at Grange Castle to treat complex anal fistulas in adults who have Crohn’s disease.
The note states that in February 2024, Takeda made a decision not to pursue marketing authorisations for Alofisel in the United States or Canada based on the findings of a clinical study announced in October 2023.
In 2020, Takeda Ireland secured planning permission for an expansion of its P3 manufacturing capacity that would result in 117 additional jobs at the site.
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However, the note states that the Alofisel decision “had a direct impact on the manufacturing facility P3 in Grange Castle, Ireland, which was built to enable the business to meet future demand in the US and Canada”.
The note adds that as a result of this “a decision was made to discontinue operation of the P3 Alofisel manufacturing facility in Grange Castle”.
The impairment did not impact the entity’s going concern due to limited size of Alofisel business, it adds.
In accounts signed off on February 25th, the note states that the “P3 manufacturing facility remains unused” and that “the Takeda group has not disclosed any plans regarding the future use of this facility”.
The accounts show that despite the €37.2 million impairment, pretax profits at Takeda Ireland more than doubled from €13.8 million to €28.1 million in the 12 months to the end of March 2024.
This followed revenues increasing marginally from €383.9 million to €388.29 million.
The company recorded a profit after tax of €16.69 million.
The Japanese headquartered Takeda today has commercial operations, corporate services and manufacturing facilities across four locations in Ireland: Baggot Street in Dublin, Bray, Citywest and Grange Castle.
The directors state that “are satisfied with the company’s progress and will continue to seek additional opportunities”
Profits last year increased sharply after cost of sales reduced from €351 million to €308.8 million and the directors state that the decrease “is mainly related to reduction in intercompany royalty expenses”.
Today, the Irish unit has grown to employ over 1,000 people and staff costs last year increased from €64 million to €71.7 million.
