Written answers

Thursday, 24 January 2013

Department of Jobs, Enterprise and Innovation

Pharmaceutical Sector

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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To ask the Minister for Jobs, Enterprise and Innovation the effect of the Patent Cliff experienced between September and November 2012 on employment levels in the relevant sectors and the actions to ameliorate the situation; and if he foresees a similar situation developing in the next five years. [3245/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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In 2012, there was a reduction in employment levels in some pharmaceutical companies in Ireland due to the expiry of patent protections combined with increased competition from overseas sites. IDA has been working for many years to diversify the pharmaceutical base here in Ireland. Patents on several blockbuster drugs expired over the last decade and, notwithstanding these developments, there has been continued growth in the sector.

In growing the pharmaceutical sector, IDA's strategy has been to win leading company investment and to diversify the breadth of operations over multiproduct sites, including associated services and development of new compounds. We have been enormously successful in attracting eight of the top 10 global pharmaceutical companies and the world’s number one biotechnology company to Ireland. In addition, there are a large number of companies outside of the top ten who manufacture and successfully export from Ireland.

The Irish pharmaceutical industry is an enormously important and highly valued sector in Ireland. While the industry has been faced with some difficult years due to patent expiration and competitiveness challenges, the industry is starting to see an increase in R&D productivity with the advent of more targeted biotech therapies and personalised medicines. 2012 saw the highest number of new drugs, 39, approved by the United States Food and Drug Administration in 16 years and the predictions are that the industry has turned a corner. Ireland is in position to be the location of choice for development and manufacture of a number of these next generation drugs and the sector has been performing well in Ireland, with €1.1bn of new investment announced in 2012 from five major IDA client companies, which will result in 1,200 jobs.

While IDA Ireland will continue to enhance Ireland’s offering in the pharmaceutical sector, the Agency has indicated that it will also continue to focus on biopharmaceuticals, which represent the next wave of opportunity in the industry. Indeed, it successfully attracted and developed globally leading programmes from companies such as Allergan, Amgen, Centocor, Eli Lilly, Genzyme, Merck, and Pfizer with the result that Ireland now has a globally leading biopharmaceutical cluster in the next generation of pharmaceutical products.

Whether available as a generic or a brand, global companies strive to ensure that the products they produce 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.

Additionally, Government agencies are continuing to invest in research and training to help the academic system support industry. IDA Ireland, through its overseas network, remains committed to maintaining and growing relationships with key decision makers in the pharmaceutical industry and IDA Ireland can offer assistance to companies to support new investment and enhancement of technical capability.

The overall export performance of the sector, therefore, is multifactorial and whilst there are challenges with regard to patent expiration, IDA Ireland has assured me that it will continue to support continuous improvement and transformation in its existing client base while seeking to win new FDI opportunities in the pharmaceutical sector.

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