MONTREAL -- Ayerst Laboratories refused a Quebec grant of 'several million dollars' to keep open its Montreal research facility rather than proceed with relocation of staff to the United States, the company's president said Thursday.
'We didn't need money, we've been screaming at the federal and provincial government to change the marketing environment,' said D. Donald Davies, president of Canada's largest pharmaceutical company.
Last month the firm, a subsidiary of American Home Products Corp., announced that by end of 1983, 30 researchers would be transferred to South Brunswick, N.J., where research operations scattered around the eastern U.S. would be consolidated.
Some 270 remaining research support staff may be relocated to Ayerst's other Canadian plants or may be offered jobs outside Quebec at companies conducting similar work, Davies said.
Two weeks ago senior officials from Quebec's department of Industry, Commerce and Tourism visited the New York-based parent company and 'made a generous offer and reasonable proposition,' he said.
'It was a grant involving several million dollars,' he said. 'But it came after the fact.'
An aide to Rodrique Biron, the provincial industry minister, said 'no precise offer' was made and that reference to a meeting was 'a bit of fiction.'
Davies said officials from the federal department of Consumer and Corporate Affairs had inquired about Ayerst's plans but he had 'not yet heard back' whether they would offer similar financial incentives to remain in suburban St. Laurent.
He said the Canadian market was 'the worst in the world' for the pharmaceutical industry, and cited the tax system, lack of government incentives and poor markets.
'We need an environment whereby a company makes an investment ... and recovers it through a normal and healthy market,' Davies said.
He added the firm was 'saddened' over the decision to move out of Quebec but said 600 employees involved in manufacturing, production and quality control would remain in Montreal.
He added there could be 'no guarantees' remaining research employees would be placed but said Ayerst had pledged 'to do its best' in view of poor economic conditions.
