The life sciences sector in Ireland is booming, accounting for 32 per cent of GDP, employing 40,000 people, and the country is the "gateway to the world's second biggest med-tech market – Europe", says Tom Clarke, chair of the Irish Medtech Association and senior director, West Pharmaceuticals. With nine out of the top 10 pharmaceutical companies, 14 out of the top 15 med-tech companies, and nine out of the top 10 US technology companies operating in Ireland, what is it about the country that makes it so attractive to the sector?
Life Sciences and Stem special report looks at how the life sciences sector in Ireland has played a huge part in the fight against Covid-19 and advancing Ireland’s reputation not only as a global leader in manufacturing but also in research and development.
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Dave Flynn, executive director, workforce agility and innovation at Skillnet Ireland says, “Ireland has a strong international reputation for life sciences, particularly in relation to pharmaceutical and medical device manufacturing. The sector has deep roots here.
“The prevalence of foreign direct investment-related life science businesses, and the successes they have achieved in Ireland, is attractive for prospective entrants. Ireland’s position as an English-speaking gateway to the European market is a key location factor, as is talent. Our workforce is well known to be highly educated and agile.”
In addition, there is a “generous tax credit” for research and development (R&D) expenditure, which is attractive to the life science sector which thrives on innovation.
“Businesses also recognise the significant commercial opportunities arising from the emergence of digital health,” says Flynn. “Ireland is well positioned to capitalise on this opportunity based on the existence of strong technology, biopharma and medical technology clusters in Ireland, coupled with an ecosystem that supports collaboration.”
Clarke believes the strong talent pool here is an important factor in its attractiveness to both international and domestic companies basing themselves here, with 47 per cent of 25- to 64-year-olds having third-level qualifications and a really strong “ecosystem where academia, research, start-up, SMEs and FDIs interconnect. For mature economies, such as Ireland, innovation is and will continue to be the chief driver of sustainable economic growth.”
Long history
Foreign direct investments (FDIs) have a long history of coming to the country to set up shop, says Clarke, starting with Johnson and Johnson and Abbott in the 1930s. "While initially grounded in manufacturing, many of these organisations have evolved to being global centres of excellence for their respective organisations which ,along with high-value manufacturing, now includes global leadership in research & development, global-shared services and business solutions."
Support by agencies such as the IDA and Enterprise Ireland plays an important role, says Flynn. "We have seen Irish subsidiaries of global life science businesses secure additional investment at a corporate level based on digital transformation talent initiatives. In fact, Irish operations have become exemplars, and we're seeing examples of how these successful initiatives are now being replicated across other jurisdictions."
In addition, the National Institute for Bioprocessing, Research & Training has played “a huge part in developing our talent for the biopharma sector and aligned to €10 billion in capital investment in life sciences in the last 10 years”, says Clarke.
Thanks to this support many world-class companies have established themselves here and continue to thrive, such as Stryker, who came to Ireland in 1998 and has "eight facilities across Ireland and a team of almost 4,000, including its global research, development & innovation centre, and can also boast the world's largest 3D printing facility for medical devices", says Clarke.
Other success stories include Intel, which has invested $22 billion into creating the most advanced industrial campus in Europe; Health Beacon, which announced an IPO to raise €25 million; LetsGetChecked.ie which recently raised $150 million series D for a $1billion (€890m) valuation; and Qualio which has raised $63 million (approximately €55m) in investment to date. In total there are already over 200 health tech start-ups across Ireland.
Climate challenges
Success is not without its challenges, and the industry as a whole is responding to the climate change agenda and the need to develop more sustainable business models. Flynn believes that there is an opportunity to develop more cohesive responses to the climate challenge and “if we do this well we will undoubtedly encourage more life science business to Ireland in the years ahead ”.
While Covid and its predecessor Brexit have impacted the sector – mostly through supply-chain disruption, says Flynn – Ireland’s life science sector has coped well with their impact.
In fact, the sector was well-placed to respond to the needs of the pandemic, with Medtronic manufacturing ventilators to support patients, and Aerogen's nebulizer technology used to "deliver aerosolised medication to critically ill ventilated Covid patients", says Clarke.
With many advancements in technology revolutionising the life sciences sector, the future looks exciting. From artificial intelligence supporting early diagnosis, nanotechnology enhancing drug technology, and developments in wearable technologies, advancements are made daily.
Personalised medicine is now a reality through advanced drug development and cell and gene therapy, says Clarke, and these innovations are “transitioning society from disease management to preventative health and wellness. “The medical or wellness devices of the future will be ladened with bio-sensors and software to enhance drug efficacy and delivery.”
Even tech companies such as Google and Amazon are partnering with life sciences to advance clinical needs.
To continue to support the growth of the sector, Clarke says that a “well-funded connected network of world-class universities, colleges, and research centres must continue to be on our national agenda to maintain and grow Ireland’s position as a global leader in life sciences”.