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| Kevin Sharer, Amgen's Chairman, Chief Executive Officer and President |
Amgen, the world's top biotechnology company, which announced plans in January 2006 to build a major plant in East Cork Ireland, has indefinitely shelved the project following difficulties encountered in recent times with its leading drugs on the US market.
The US project was to create 1,100 jobs in Carrigtwohill, Co Cork.
IDA Ireland said today that the company has decided to 'indefinitely postpone' its planned design and build-out of its bulk manufacturing facility in Cork, but the State agency stressed that the decision does not reflect in any way on the business environment here.
However, it is a serious blow because Ireland has not attracted any significant US investment of the level of Intel, Dell or HP, since the 1990's.
IDA Ireland said the decision comes because of decisions taken by US Medicare authorities, which impact on some of Amgen's main drugs and as a result the firm is reducing its staff globally by up to 14%, closing two plants in the US, and reducing its planned capital expenditure.
Studies which revealed that the company's two top-selling anaemia drugs, Aranesp and Epogen, raised the risk of death when given in high doses resulted in a 26% drop in Amgen's share price this year to around $56.
The two products account for almost half of the company's overall revenue.
'The decision in relation to Carrightohill, Co. Cork, which was made only in recent days, does not reflect in any way on the business environment here," IDA Ireland said.
It added that Amgen will retain the Cork site, so that changed circumstances may lead to a recommencement of plans.
In April Amgen said it was delaying by two years plans to construct the factory to 2012, instead of 2010. And in August the biotechnology group said that the plans to cut the company's workforce will not affect its Irish operations in Cork.
Up to 2,600 jobs are to be shed by the company in an attempt to save more than $1 billion next year.
Amgen intends to cut capital spending by €1.9 billion over the next two years.
Statement by Minister for Enterprise, Trade and Employment, Micheál Martin, TD:
I am deeply disappointed by the announcement by Amgen that it is indefinitely postponing its plant at Carrigtwohill, Co Cork.
Our immediate priority must be to offer every possible support to the 79 existing Amgen staff. The job creation agencies of the State will work with these employees to find them alternative jobs.
The decision has been made as a result of a review of Amgen’s operations and is based purely on developments related to the company’s global business and is in no way related to the economic or competitive environment in Ireland.
The Government remains committed to attracting inward investment into Carrigtwohill and other communities in East Cork.
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Aug 16, 2007 Finfacts report: US biotech giant Amgen to cut 2,200-2,600 staff; Sustainability of delayed East Cork, Ireland plant project in question
