Written answers

Wednesday, 29 February 2012

Department of Enterprise, Trade and Innovation

Pharmaceutical Patents

9:00 pm

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein)
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Question 19: To ask the Minister for Jobs, Enterprise and Innovation if he will identify the 2011 value in export terms of patents that will expire in 2012, 2013 and 2014. [11318/12]

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 20: To ask the Minister for Jobs, Enterprise and Innovation the steps he is taking to ensure that ending of pharmaceutical patents does not negatively impact on job creation and retention. [11332/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 19 and 20 together.

I am aware that a series of major patents will expire in the coming year and that patent expiry can result in reduced selling prices for pharmaceutical companies. Manufacturing location decisions are rarely made on a single product basis, however, and companies also consider factors such as quality, safety, competence, costs and tax. In addition, transferring production lines from one pharmaceutical site to another is a complex undertaking and cannot be done easily. Multinational companies practice optimal site loading to ensure high efficiency and productivity within a global plant network.

The 2011 value in export terms of patents in the pharmaceutical industry that will expire in 2012, 2013 and 2014 is not available as such information is confidential to each individual pharmaceutical company and can depend on the company's supply chain, location of patented drugs production and the company's method of accounting. I can confirm, however, that Ireland is the world's largest net exporter of pharmaceuticals with exports valued at €55 billion in 2010 accounting for 50% of exports. The pharmaceutical sector employs 25,000 people directly in high paid jobs and contributes almost €1 billion in annual corporation tax.

Ireland has been enormously successful in attracting eight of the major global players and the world's number one biotechnology company to Ireland. In addition, Ireland has a large number of companies outside of the top ten who manufacture and successfully export from Ireland. In accordance with its Horizon 2020 Strategy, IDA Ireland continues to attract leading investment in the pharmaceutical industry and, in the last two years, has attracted manufacturing companies of the quality of Warner Chilcott, Biomarin, Alkermes, Sangart and one of the world's leading generic manufacturers, Mylan. This is in addition to major on-going investment by existing companies.

IDA Ireland utilises the presence of leaders in the pharma sector, who have established a presence here, to market Ireland as the location of choice for potential investors while working closely with its existing client base to encourage further growth of their Irish operations, ensuring a positive future for Ireland's Life Sciences Sector.

Whether available as a generic or a brand, global companies strive to ensure that their products are produced to the highest international standards. Ireland retains an exemplary global record in this regard with an excellent regulator in the Irish Medicines Board and with much improved competitiveness through wage reduction and restraint which is helping Ireland to compete with lower cost locations.

The overall export performance of the sector therefore is multifactorial and whilst there are challenges with regard to patent expiration, IDA Ireland is succeeding in renewing its patent protected volumes through winning new product mandates in small and large molecule manufacture. Future export performance will be a reflection of all of these drivers of activity and the flexibility of the Irish operating environment to support continuous improvement and transformation.

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