'Bright future' remains for Irish pharmaceutical sector

PharmaChemical Ireland, the IBEC group that represents the Irish pharmaceutical and chemical industry, has said that despite current challenges and recent job losses, a bright future remains for the sector.

The group held its AGM in Cork today, and presented a new industry strategy, which detailed the major challenges ahead for the sector.

PharmaChemical Ireland Director Matt Moran said: "The global pharmaceutical sector is entering challenging times with the impending expiration of patented drugs, a diminished volume in research pipelines, a rising cost base, increasing competition and stringent regulatory requirements. However, the industry in Ireland is well placed to address these challenges with the active support of Government, its agencies and the research community.

"We have identified a blueprint for the type of operation that will survive into the future, and it is our aim to drive the industry in Ireland towards this 'factory of the future' model that combines high quality, cost-effective manufacturing with process and product development.

"Leading international countries are grappling with the challenge of stimulating genuine collaborative initiatives between international and indigenous companies and research centres to develop and commercialise new products and services. Ireland’s small size and flexibility is a definite advantage in this regard as it is an ideal development test bed for the global industry to experiment and scale up new product and services.

“Even though the environment is tough, the industry has a fantastic track record in this country. We have the people, the capability and the drive to rise to the challenge."

Eight of the top 10 pharmaceuticals companies in the world have major operations in Ireland, benefiting from a favourable tax regime, a highly-skilled workforce, strong compliance record and easy access to European markets.

The industry accounts for over half the national exports in value terms - some €44.17bn in 2008, employs over 24,500 people and contributes €1bn in corporation tax annually.