Ireland’s internationally renowned life sciences sector wasn’t built in a day; and over the past six decades the industry has contributed to the Republic’s economic success in a way that is hard to overstate. Not only does it employ more than 80,000 people directly, it also accounts for about 50 per cent of the State’s exports and contributes considerably to its currently bulging exchequer.
From the sector’s humble beginnings 60 years ago, €10 billion was invested in new biopharmaceutical production facilities around Ireland within the past decade alone. Although originally focused mainly on active pharmaceutical ingredient, or API, manufacturing, it has evolved to become a biologics hub, with 20 biologic sites already established here, as well as many global medical device manufacturers.
Geopolitical headwinds notwithstanding, the overarching goal is to continue to build on our unmatched success in this area as the sector evolves.
“Ireland’s biopharma sector thrives on a dynamic ecosystem of over 90 companies, showcasing a proven track record in product development and resilient supply chains,” says Sinead Keogh, director of BioPharmaChem Ireland (BPCI). “Ireland also boasts an exemplary compliance culture, with close collaboration between regulatory agencies and local authorities.”
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According to Keogh, in recent years the sector has seen growth in areas such as contract development and manufacturing organisations, and global business services, “enriching the ecosystem beyond manufacturing”.
This is just one of the reasons that Ireland’s robust talent pipeline in life sciences must be maintained, she says.
“The importance of talent and the availability of talent for the sector cannot be overstated,” Keogh adds. The fact that the sector employs 25 per cent of all PhD graduates in Ireland “is routinely cited, along with incentives, as one of the primary reasons companies can continue to sustain and attract investment here”. The State also offers unrestricted access to the wider EU labour pool of over 240 million people, she says.
Barry Balfe, president of ICON Pharma Solutions, agrees wholeheartedly. “Ireland’s prominence in the life sciences sector has ensured a critical mass in biopharma manufacturing, medtech and life sciences R&D,” he says. “The quality of these established networks, access to a highly skilled workforce and a stable, pro-business environment are central to Ireland’s continuing success in attracting FDI in this arena. Ireland’s positioning within the EU and the strength of its academic-industry collaborations also play a significant role in sustaining its competitive position.”
But to stay competitive, Keogh says, the sector requires government policies that support research and development (R&D). “To advance in life sciences, we’ve got to be more ambitious and we must prioritise public investment in pure research,” she explains. “We must also ensure that the right incentives are there to encourage R&D, so we must ensure the R&D tax credit remains relevant and encourages both applied and emerging research.”
Indeed, there are multiple imminent threats to Ireland’s life sciences success. According to Keogh, the industry is facing a surge of overlapping regulations that could delay timely access to, and potentially limit the availability of, essential treatments.
“By prioritising regulatory reforms that support patient-centric innovation, the sector can continue developing cutting-edge products while advancing towards a sustainable future,” she says.
In Balfe’s view, Ireland faces a number of direct challenges to its competitive position. “The industry sits at a confluence of two major revolutions – in both biomedical science and in AI,” he says. “These rapid changes to how pharma and medtech R&D are conducted require Ireland to adapt to shifting demand for energy, advanced analytics and cutting-edge manufacturing infrastructure. Government policy in these areas will be central to attracting and retaining world-class R&D and manufacturing centres of excellence.”
Ireland’s relatively unattractive positioning as a centre for clinical research is another issue that must be addressed, adds Balfe. “Clinical trial regulations, lengthy cycle times and pressure on the secondary care infrastructure have traditionally diminished Ireland’s position as a clinical research destination and restricted patients’ access to clinical trials as a care option,” he says. However, the recent establishment of the Clinical Trials Oversight Group represents a positive move in this regard, he notes.
Meanwhile, the same macroeconomic threats that impact other sectors will have out-sized implications for Ireland’s life sciences industry, he warns. “Pressure on US multinational companies to repatriate jobs and investment, competition from emerging markets and sustained pressure on Ireland’s corporate tax position will require decisive action from government and industry partners.”
He also highlights Ireland’s well-documented challenges with relative cost of living, housing and transport infrastructure, saying these are important considerations for companies evaluating Ireland as a potential hub.
Keogh notes that support for innovation must also be complemented by investment in infrastructure deficits. “They slow growth, deter investment and hinder the development of large service sites necessary for the life sciences sector,” she says.
The life sciences’ contribution to tackling the climate crisis will also be key to the sector’s continued success in Ireland. According to Chris Collins, country president Ireland of Schneider Electric, life sciences companies are extremely keen to embrace energy-efficient practices to support operations as they transition to renewables.
“Life sciences is a sector that’s committed to sustainability,” he says. “Some of our customers are trailblazers in this space. They’re organisations that are prioritising energy management and digitalisation while exploring and investing in ways to generate their own energy. They’re also looking at ways to help others by sharing any of the excess energy they generate.”
Policy decisions that enable and support these ambitions must be made, Collins says. “Unfortunately, delays in planning permission for onshore wind, solar farms and microgrids are slowing down the energy transition in life sciences and other industries. The delays are preventing companies from releasing sites on which to deploy wind turbines, solar farms and power distribution equipment that can deliver energy efficiencies in the short term.”
Ibec and BPCI have been calling for the past number of years for a national life sciences strategy that would be resourced and led out of the Department of Enterprise, Trade and Employment, says Keogh. “This strategy would help us overcome rising obstacles, diversify beyond manufacturing and supply chains, foster a thriving environment for start-ups and SMEs, and ensure access to world-class talent, as well as patient access to innovative medicines and technologies,” she adds. “We must maintain our hard-won competitiveness while advancing next-generation innovations.”