Sharp rise in profits at Limerick-based biotech company
PRE-tax profits at the main Irish unit of biotechnology giant, Regeneron increased more than 12-fold last yeatr to $3.7bn (€3.71bn).
Accounts filed by Regeneron Ireland DAC show the company, which is based in Raheen, recorded the sharp increase in profits as revenues more than doubled from $4.685bn to $9.69bn.
The revenues recorded by the Irish-based company account for 60% of Regeneron’s global revenues of $16bn in 2021.
In a post balance sheet event, the directors confirm that Regeneron Ireland DAC paid out a dividend of $2.9bn, this year, to parent, Regeneron Atlantic Holdings (RAH).
The Regeneron operation in Limerick has gone from strength to strength since it established its Irish HQ at the former Dell site in Limerick.
Since 2013, when Regeneron first announced plans to invest in operations in Ireland, the company has consistently exceeded job and investment projections for its Irish operations.
The directors for Regeneron Ireland DAC state the increase in revenues in 2021 was primarily due to higher revenues in connection with the product supply of eye treatment medicine, EYLEA to Regeneron Pharmaceutical Inc.
The record year enjoyed by Regeneron Ireland DAC also provided a significant contribution to the State’s corporation tax take.
The company recorded after tax profits of $3.24bn after corporation tax of $458.6m was paid and this was made up of Irish corporation tax of $264.1m and deferred tax of $194.5m brought about by ‘origination and reversal of timing differences’.
In 2021, the numbers employed by Regeneron Ireland DAC increased by 469 from 1,149 to 1,618 with 1,532 engaged in production, 54 in administration and 32 in research and development.
Staff costs last year increased by 32pc to $224m that includes $158.57m in wages and $32.7m in non-cash compensation.
The company recorded an operating profit of $4.17bn in 2021 and finance costs of $480.19m contributed to the pre-tax profits of $3.7bn.
The company’s Research and Development (R&D) costs last year totalled $640.89m.
The profit takes account of $661.69m in non-cash amortisation costs. The company’s costs also include a royalty payment of $2.5bn to Regeneron Pharmaceuticals Inc - more than double the $1.2 billion paid out in royalties in 2020.
Pay to directors totalled $1.4m for the year while the aggregate amount of the gains by the directors on the exercise of share options previously granted by RPI was $9m for 2021.