Final word: Isle of opportunity?

The pharmaceutical sector is a very important part of the Irish economy and its continued development has contributed significantly to our recent economic prosperity. The sector has grown from a small constituent of the economy in the early 1970s to the point today where over 120 pharmaceutical companies operate in Ireland, and 14 of the top 15 companies worldwide have substantial operations here. The figures give an indication of how important the sector has become; the pharmaceutical sector employs 24,000, and generates annual exports of €15 billion). The industry makes annual tax payments to the Irish Exchequer of over €3 billion and has attracted total investment of over €13 billion, €5 billion of which has been in the last five years.

The pharmaceutical sector looks to Ireland as a model of what can happen when a constructive relationship between the state, state agencies and the industry is allowed to flourish. The new agreement with the Health Service Executive on the supply of medicines to the Irish health services is further evidence of that constructive relationship and of the country’s support for innovation. This agreement is good news for Irish patients. It will ensure that patients continue to have access to the most up to date and highest quality medicines when they need them while supporting and encouraging innovation, the lifeblood of the pharmaceutical industry.

Competition

Obviously Ireland faces strong competition from places like Singapore and Puerto Rico for new investments but I remain confident that the sector can continue to grow and develop in this country although, our competitive advantage for the future will depend less on manufacturing and more on building a reputation as a world class centre for innovation and R&D. Investments in the last couple of years in R&D by companies such as Wyeth, GSK and Bristol-Myers Squibb, as well as the significant biotech investments, bodes well for the future but we must not become complacent in this highly competitive global industry.

To remain a significant player, Ireland must seek to attract additional elements of the business' value chain such as clinical trials, process development and optimisation and activities like shared services centres. However cost effectiveness is important and rising operating costs are a serious concern for the industry. Ireland is becoming a very expensive place to do business, placing the country at a significant competitive disadvantage. Despite recent investments and pharma’s undoubted success to date, Ireland would do well to nurture the sector, as its future could be a lot less certain should legislators and decision-makers take it for granted.

Future

A vibrant, research-led pharmaceutical industry is crucial to creating the knowledge-based economy Ireland needs to be successful in the 21st century. Ireland has the potential to be a world-class hub for the conduct of internationally recognised clinical research that not just benefits the economy but patients all over the world by providing new and better treatments. Our technical capabilities and our skilled labour force can make it possible to shift away from a manufacturing-led to a knowledge-led economy. In order to turn this potential into reality we need to put in place an efficient and timely framework for the conduct of such clinical trials. We also need to develop mechanisms to facilitate enhanced collaboration between pharmaceutical companies and researchers undertaking important basic research that may ultimately result in new therapies for patients.