I thank the Deputy for raising these matters. The expiry of the patent on products manufactured by Pfizer has, unfortunately, resulted in the announcement of the loss of 177 positions in Cork this week. My thoughts are, obviously, with the workers and their families. All the applicable supports of the State will be made available to the workers if they are needed.
I have spoken to the company about the situation. These two quality plants in Cork will still employ more than 500 people and will be adapting to achieve operational excellence and deliver competitive manufacturing for the company. The company has also confirmed Ireland remains a key strategic location. Factoring in this decision, Pfizer will still employ almost 4,000 people in Ireland across eight locations. In September 2011, the company announced a €145 million investment in its Grange Castle site to develop a new site to expand the Irish manufacturing process for an invasive pneumococcal vaccine.
The Deputy is correct that the expiry of patents is a problem for a number of companies. In the case of Pfizer, Lipitor was the biggest selling drug in the world by a factor of two. Virtually all of the API was in Cork, as was most of the formulation. Having other investments in the pipeline, Pfizer is itself adapting to the challenges of products going off patent. IDA Ireland has been working for many years to minimise the threat to jobs posed by products coming off patent and has been seeking to diversify Ireland's pharmaceutical base. Its strategy has been to win leading company investment and to diversify the breadth of operations over multi-product sites, including associated services and development of new compounds. Ireland has been enormously successful in attracting eight of the major global players and the world's number one biotechnology company to manufacture from Ireland. IDA Ireland has focused, in particular, on biopharmaceuticals, which represent the next wave of opportunity in the industry, and has been very successful in attracting leading companies, with the result that Ireland now has a globally leading biopharmaceutical cluster in the next generation of pharmaceutical products.
I have been informed by IDA Ireland that employment in their client companies is surveyed annually by Forfás in its annual employment survey. Between 2010 and 2011 net employment in IDA client companies in the pharmaceutical and healthcare services sector increased by approximately 1,400. This is in the context of an overall net gain in employment of 6,118 in 2011. In the first six months of 2012 alone, Ireland has won five major investments in the pharma and biopharma sectors with the capacity to create 1,175 new jobs. We are successfully anticipating the changes that are happening in this sector, as some products come to the end of their protected life and move on to others.
IDA Ireland has assured me that it will continue to seek to win new investments in the pharmaceutical industry and to win large scale investments in product development and capability to enable its existing client companies take on new product mandates.
The examinership at Atlantic Homecare is disappointing and reflects the difficulties facing some retail operators, particularly those with exposure to the construction sector. My thoughts are with the workers whose jobs are under threat at Atlantic Homecare. As has been publicly stated, the 13 store chain has been losing money for the last five years, with losses of €11 million last year. The company has cited high rents as a factor and it is to be hoped this will be addressed in the course of the examinership.
As Deputy O'Dea pointed out, the examinership process will last several months and the stores will continue to trade as usual during the process. The examiner will be preparing a plan for the survival of the business. The company is engaging with the trade union representing staff interests.
Deputy O'Dea raised this issue on previous occasions. He knows the legal advice to the Government is that the hoped for removal of upward only rent provisions from existing contracts could not be implemented by Government.