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The Pharmaceutical Sector in Ireland

The Pharmaceutical Sector in Ireland. SSDC Chemical Industry Plenary Meeting 9 th April 2013 Eurofound Dublin. Pharma Sector in Ireland. One of the premier global locations for pharmaceutical and chemical product manufacture

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The Pharmaceutical Sector in Ireland

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  1. The Pharmaceutical Sector in Ireland SSDC Chemical Industry Plenary Meeting 9th April 2013 Eurofound Dublin

  2. Pharma Sector in Ireland • One of the premier global locations for pharmaceutical and chemical product manufacture • Nine of top ten global pharma companies have a facility in Ireland • Exports of €55.1bn* = 50% of total value of Irish exports • Contribution of €1bn in corporation tax to the state • Sector employs 50,000 people directly and indirectly • Ireland is the second largest development and manufacturing location in the world for biopharmaceuticals • Largest net exporter of medicines in the world * CSO - 2011

  3. Challenges • Patent expiry – expected loss of $29bn in 2013* • Global over-capacity – 300,000 jobs cut since 2000* • Significant R&D costs – global R&D funding by large pharma to drop by 5.7% in 2012** • Product failure at late stage clinical trials • Declining pipelines • Downward pressure on healthcare costs due to budget pressures • Cost optimisation *Deloitte 2013 **Forbes 2011

  4. Opportunities • Talent – Highly skilled Irish workforce critical to the success of the sector. Global functions based out of Ireland increasing year on year • Taxation – 12.5% corporation tax rate in addition to 25% R&D tax credit • Compliance – Global quality standards falling while remaining very high in Ireland • OPEX – Irish sites accruing huge benefits from optimisation of OPEX best practice • D&M – Development plus Manufacturing model

  5. Workforce • Direct employment has grown from 5200 in 1988 to 24,000 in 2012 (additional 24,500 employed providing services) • 50% of employees have a university qualification • Exemplary compliance record – no warning letters have been issued to any Irish facility in last 10 years • Proven track record of manufacturing excellence • Strong local management (with global functions) • Flexible and adaptable workforce

  6. Broader environment • Irish economy has stabilised with GDP growth of 0.9% in 2012 • 85% of austerity has been delivered • Substantial improvement in unit labour costs • Private sector protocol renewed to end 2013 • 39% of firms planning increase to basic pay in 2013* However: • Pensions – 90% of DB plans in deficit • Health Insurance costs increasing year on year *IBEC Study Q4 2012

  7. The future is now • Focus is to sustain and create jobs • Talent development of a flexible workforce willing to embrace and facilitate change–key to delivering economic recovery and growth • Highly efficient, cost – effective manufacturing employing fully optimised operational excellence • Irish site - Site of choice for all new entities to market • Strong collaboration between industry partners • Industry working in close collaboration with government and academia

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