Seán Kenny (Dublin North East, Labour)
Link to this: Individually | In context | Oireachtas source

281. To ask the Minister for Jobs, Enterprise and Innovation the steps being taken in the pharmaceutical sector to attract additional high quality jobs into this vital sector; and if he will make a statement on the matter. [49082/13]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Pharmaceutical Industry is an enormously important and highly valued sector in Ireland, employing 25,000+ people directly in Ireland with an equivalent number employed in service provision to the sector. Ireland has an enviable history of success in this field, attracting some of the world’s leading pharmaceutical companies, and is home to a thriving domestic sector. 9 out of the top 10 global pharmaceutical companies are located here.

While the industry has been faced with some difficult years due to patent expiration and competitiveness challenges, it is starting to see an increase in R&D activity with the advent of more targeted biotech therapies and personalised medicines. Significant importance is attached to the pharmaceutical sector in the context of the research prioritisation exercise, with one of the priority areas encompassing therapeutics, synthesis, formulation, processing and drug delivery.

IDA Ireland, through its overseas network, remains committed to maintaining and growing relationships with key decision makers in the pharmaceutical industry and can offer a wide variety of assistance to companies to support new investment and uplift in technical capability of existing clients.

Unfortunately, the loss of patent protection on key drugs in recent years adversely affected some older manufacturing facilities around Ireland, resulting in downsizing or closure. However, in parallel several facilities have been acquired or expanded in recent years, in particular in the area of biopharmaceuticals. Biopharmaceuticals, which represent the next wave of opportunity in the industry has successfully attracted and developed globally leading programmes from Allergan, Amgen, Centocor, Eli Lilly, Genzyme, Merck, Biomarin and Pfizer as examples. Ireland now has a globally leading biopharmaceutical cluster in the next generation of pharmaceutical products.

Ireland already has successful generic manufacturers such as Clonmel Healthcare, Ranbaxy, Wockhardt, Teva and Rowa as examples. These companies have operated successfully from Ireland competing with low cost competition for many years.

The indigenous bio-pharmachemical sector plays a key role in this ecosystem and consists of approximately 100 Enterprise Ireland client companies. This sector has been growing at an average of 14% per annum over the last four years. In 2012, the sector had exports of over €450M, and employment of over 2,500 people. The indigenous sector is highly innovative and dynamic with companies competing successfully in international markets throughout the world e.g. Sigmoid, Opsona, Alimentary Health, ICON, Chanelle, TopChem, Barclays, Eirgen, Arran Chemicals etc. ICON in particular is now the 3rd largest contract research organisation in the world and the fastest growing for the last 7 years.

Central to the success of Irish companies internationally has been their R&D capabilities, leadership and management strengths and collaborative partnerships with some of the world’s leading companies in the sector. The indigenous company base has extensive capabilities across the pharmaceutical and biotechnology supply chain including drug discovery/development/drug delivery (technology intermediaries); the manufacture of active pharmaceutical ingredients; the manufacture of human and veterinary finished products; the provision of pharma services including clinical trials management, regulation, engineering and construction.

The State has invested heavily through Science Foundation Ireland, Enterprise Ireland and IDA Ireland in the development of a World-class Research Infrastructure by funding industry-academic research collaborations, Industry-led research programmes/Technology Centres and the Applied Research Enhancement Programmes through the likes of the National Institute for Bioprocess Research and Training (NIBRT), the Solid State Pharmaceutics cluster and the Pharma Technology Centre. These centres aim to improve the productivity and competitiveness of the Irish biopharma industry by investing in research on next generation manufacturing processes and training & education of people to work in this industry.

A key focus for Enterprise Ireland, IDA Ireland and other relevant stakeholder bodies is to promote and build expertise in ‘biological’ research, development and manufacture such that Ireland continues to develop as a globally recognised ‘biopharmaceutical hub’. The NIBRT facility has been effective in bringing training on large molecule manufacturing processes to the sector in Ireland.