One of the US's leading pharmaceutical companies is close to finalising a deal worth up to $1 billion to establish a plant in the State to produce genetically engineered drugs.
Mr John Stafford, chief executive and chairman of the company - American Home Products Corporation - was quoted yesterday as saying the investment would amount to $1 billion (£820 million). He said the company would establish an Irish plant to manufacture Enbrel, a drug used for the treatment of rheumatoid arthritis.
A company spokesman confirmed last night that negotiations between the company and the IDA were at an advanced stage and a final decision was expected within four weeks.
The spokesman said he could not comment on the $1 billion figure attributed to Mr Stafford in yesterday's New York Times. He declined to confirm the actual figure involved or the number of jobs which would be generated.
He said a number of potential locations in Ireland were being considered for expansion, future development, or both. American Home Products Corporation has three subsidiary operations in the Republic. Wyeth Nutritionals Ireland, based in Co Limerick, and Wyeth Medica Ireland, in Co Kildare, employ 1,500. Another subsidiary operation, Fort Dodge Laboratories, is situated in Sligo.
The EU approved the manufacture of Enbrel and a number of other drugs developed through genetic engineering last month. In an interview with the New York Times, Mr Stafford said the company was planning to expand its biotechnology business worldwide. The company confirmed on Tuesday that it had sold its agriculture products business American Cyanamid for some $3.8 billion to the German chemicals giant, BASF.
American Home, whose headquarters are in New Jersey, operates in more than 125 countries and employs 51,600. Last year, it had sales of $13.6 billion.