Pharmaceutical Firm Starts to Expand; MEDICINES: After Difficult Year Wrexham Company Is Growing Again Thanks to New Contracts
Byline: WILL SMALE Assistant Business Editor
AFTER a difficult 12 months of reduced profits and redundancies, CP Pharmaceuticals is now taking on extra staff to meet a big upturn in sales.
The Wrexham-based company, like everyone else in the pharmaceutical industry, was hit by the sharp fall in medicine prices over the past year.
Caused by oversupply across the sector, CP's sales dropped by 6pc to pounds 30.4m and operating profit fell severely by 42pc to pounds 2.1m, in the year ending June 30, 2001.
Reacting to the difficult market conditions, the firm recently restructured its business and carried out some redundancies.
Following this strengthening work, and with medicine prices now increasing, CP's directors are confident of a much better year ahead.
A number of multi-million pound orders have just been received and the 430-strong company is currently interviewing for an extra 25 staff at its Wrexham Industrial Estate site.
Andrew Coveney, CP's finance director, said, "We are looking to grow quite strongly this year and have started production on a number of new contracts. In fact, we need to achieve a quite big increase in production.
"We are taking on new employees as we speak, actively recruiting in the region of 25.
And new contracts have been achieved in both the UK and overseas markets, including a major contract with a hi-tech Californian firm, and a pounds 1m deal with a UK and Denmark-based company.
"We are looking to build on these.
"The medicine market is a lot more healthy now. It still hasn't recovered to the levels of a couple of years ago, but it is a lot more stable. …