Pharmaceutical sector 'faces stiff competition'

THE pharmaceutical industry's golden age is over and companies face a harsher climate in the future, the body representing the industry warned yesterday.

PharmaChemical Ireland, which is part of employers' group IBEC, said Ireland continued to rank among the top locations in the world for the manufacture of drugs and chemicals but would face increasingly stiff competition from Singapore, India and China.

"The jewel in the crown of the Irish economy, currently worth €35.7 billion in exports and employing 24,000 people, will need careful nurturing in the future otherwise we may see much of its shine fading," said PharmaChemical Ireland director Matt Moran.

The body yesterday released its strategic review of the industry, which identified the immediate challenges facing pharmaceutical and chemical companies.

These included "a spiralling rise in operational costs across the board," such as a 23% rise in gas prices and a 41% hike in local authority charges, as well as shortcomings in the infrastructure needed to handle waste.

The report also warned of the threats to attracting future investment arising from other countries with favourable tax regimes. Ireland also needed to tackle the decline in the number of students taking science subjects, the review added.