Jimmy Devins (Sligo-North Leitrim, Fianna Fail)

Pharmaceutical exports from Ireland are valued at €34 billion annually, achieved by 80 companies employing 20,000 people. The pharma and biopharma sectors are extremely important for Ireland and have experienced significant growth in recent years. The outlook for Ireland in terms of development and manufacturing is that in spite of intense competition, we will still secure investment in both the small molecule or pharma area and also in the large molecule or biopharma sector. Ireland has a long history in the sector and eight of the top ten major pharmaceutical companies now have a major presence here.

Much of IDA Ireland's engagement with the companies is around securing additional investment and business functions from the established client base. With over 40 years of investment in Ireland, the operating environment is recognised as world class, with excellent infrastructure and specialist services and a regulatory record that is second to none. IDA Ireland is continuing to win development projects from the pharma sector.

The single most effective strategy of securing the future of manufacturing at the Irish sites is giving the Irish companies a role in new product development. Major investment projects currently under way include Merck in Carlow, Teva in Waterford, Eli Lilly in Kinsale, Genzyme in Waterford, Gilead Sciences in Cork and Hovione in Cork. These projects, which are mainly at an advanced construction stage, will lead to the creation of 800 jobs and involve substantial capital investment of over €800 million.

The key objectives of Enterprise Ireland's three-year strategy for the development of this sector are to accelerate indigenous export growth by €175 million; build a platform for longer-term growth in the sector; build client innovation capability; and drive improved leadership and management competencies. These are all positive developments. However, in international markets the traditional pharma sector has been experiencing somewhat slower growth. This is due to a combination of factors including patent expiries, a decline in product pipelines, increased costs of clinical and pre-clinical research, pressure on pharmaceutical prices, increased costs of marketing and sales and greater intensity of competition. There has been a decline in research and development productivity and generic drugs have been achieving greater market share. Given these developments, it is more important than ever to concentrate in Ireland on building the infrastructure to support a healthy, vibrant pharmaceutical industry, an industry firmly rooted in the sciences.

The Government has strongly committed to this. Over the last decade or so we have put in place the programme for research in third level institutions which focused on building world class research facilities and capability under the National Development Plan 2000-2006. Science Foundation Ireland was established to attract world-class researchers to Ireland and promote world-class research activity, focusing mainly on life sciences and ICT. With these foundations in place, the Government is committed to further developing the sector. We have a clear vision in place, which is being carried out through the implementation of our national strategy for science, technology and innovation for 2006 to 2013.

With regard to dialogue with the sector, the Tánaiste and her Ministers frequently meet individual companies from the whole range of sectors. For example, on a recent IDA Ireland investment promotion mission in the US last November, the Tánaiste met a range of companies including four from the pharmaceutical sector.

On the question of manufacturing, the 2008 report of the high level group on Manufacturing identified the actions to be taken by all stakeholders to respond to challenges and take advantage of opportunities to further develop the sector in Ireland. The report sets out a number of recommendations directed at innovation, productivity leading to transformational change and reskilling and management development. It also identifies a need to increase awareness and take-up of existing supports. In the recent review of Towards 2016, the social partners agreed that a manufacturing forum should be established to monitor and ensure the implementation of the report's recommendations. The members of the forum are now being appointed.

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