A D V E R T I S I N G F E A T U R E

THERE are cur-rently 24,500 peo-ple employed inthe Irish pharma-ceutical industryin roles ranging

from manufacturing andmarketing, to research andpatient education.

Over half of those workingin the industry are graduateswho have completed degreecourses in science, chemistry,microbiology, biotechnologyor genetics.

According to the websitepharmacareersireland.com,graduate starting salariestypically range from €18,000-€30,000, but rise rapidlywith experience. Middlemanagement salaries typical-ly range from €50,000 to€90,000. Figures from theCentral Statistics Office showthat workers in the sectorearn almost 30pc more thanthe national average wage.

Ronan Collins,Communications Officer withthe Irish PharmaceuticalHealthcare Association, saysthat the industry is goingthrough a challenging periodwhere there is likely to bemore competition for jobs.However, there are still areasof the industry where certainskills are in strong demand.

“There is a new focus onresearch & development,”Collins explains. “Employersare looking for graduateswith PhDs in scientific sub-jects. Typically these wouldbe in areas such as biochem-istry and biomedicine.’’

According to Collins, thereis also a strong demand forjobs related to regulatoryaffairs, as the pharmaceuticalindustry is one of the mostregulated sectors in the coun-try. Specialists in this area arerequired to ensure that com-panies are compliant at everystage.

“In the journey to develop-ing and delivering a medi-cine,” Collins explains, “awhole number of skills andprofessions are involvedalong the way, includingchemists, pharmacists,researchers, doctors, engi-neers, lawyers, marketers andmachine operators.’’

There are currently open-ings in the sector for graduateswith qualifications in electri-cal, chemical and mechanicalengineering but, Collins notes,pharmaceutical companies arenot just looking for graduates

with good qualifications, theyalso need graduates with goodsoft skills.

“In this industry we needpeople who can communi-

cate effectively, whether it benetworking at a conferenceor making a presentation.’’?

Graduate employment hasbeen affected by the reces-

sion. Multi-nationals contin-ue to consolidate as patentsreach their expiry dates, andthis has hit recruitment.

“Employment has fallen,but good people will alwaysbe able to get jobs,’’ saysBrian Christensen, recruit-ment consultant with LifeScience Recruitment.Christensen also says that thePhD graduates who are mostin demand are those whohave research experience thatis relevant to the industry.

“Graduates should go togreat lengths to set them-selves apart and get experi-ence in whatever way theycan,’’ Christensen concludes.“Whether it setting up yourown profile on Linked-In (thenetworking web site) ormeeting people in the indus-try, graduates should be pro-active and get themselvesnoticed.’’

NEARLY 30years ago,Ireland was inthe grip ofr e c e s s i o n .T h o u s a n d s

were emigrating, and thecountry was struggling toemerge from economic cri-sis.

Then, as now, encourag-ing growth in exports bymultinationals was seen tobe a key plank of efforts toturn the economy around.

In 1983, Ireland’s chemicalindustry – which comprisespharmaceuticals, bulk chem-icals and healthcare goods –accounted for 20pc of allindustrial exports from theseshores. Just over a dozenyears earlier, the figure hadbarely made an impact onoverall export figures.

Today, it’s the chemicaland pharmaceutical sectoragain that is being reliedupon as one of the enginesof export growth that couldhelp the economy tip backinto recovery, difficult asthat is going to be.

Last year, Ireland’s chemi-cal, pharmaceutical andhealthcare industry account-ed for over half of the coun-try’s €83.5bn in exports. TheCentral Statistics Officenoted that within the overallchemicals category, exportsof medical and pharmaceu-tical products had jumpedfrom €9bn in 2001 to almost€19.6bn in 2009. In the firstseven months of 2010, over-all exports rose 1pc to€51.4bn, boosted by a 12pcincrease in exports of phar-maceutical and medicalproducts.

Getting to this stage has-n’t been an easy ride either.Ireland has consistentlyfaced stiff competition fromlocations such asSwitzerland and Puerto Ricofor investment. While gener-ous grants and tax breakswere the initial catalystsnearly 40 years ago for thenascent industry in Ireland,since then, those drivershave broadened somewhat.While the initial focus waspurely on manufacturing,pharmaceutical firms havebeen encouraged to increas-ingly locate sought-afterresearch activities in Ireland.

Admittedly though, all isnot rosy for the pharmaceu-tical industry in Ireland,despite its continuinggrowth in exports.

Some companies are facingso-called ‘patent cliffs’, withmajor blockbuster drugs thatwhich for years have provid-ed the bulk of their revenuesnow facing the prospect ofcompetition from genericalternatives.

Pfizer’s Lipitor cholesterol-lowering treatment is one ofthe drugs facing a dramaticfall in sales. The active ingre-dient for the product is madein Cork and in 2008 Lipitoraccounted for more than20pc, of $11.4bn of Pfizer’ssales. The patent on the drugexpires this year.

Indeed, drugs with an esti-mated $90bn in annual salesare coming off patent overthe next three years, includ-ing major products made bycompanies such as Sanofi-Aventis, Eli Lilly, Johnson &Johnson and Novartis.

Some companies now haveexcess capacity, which hasresulted in jobs being shed.Last month, Schering-Plough(part of Merck & Co) said itwas seeking 160 redundan-cies at its plant in Cork inorder to improve efficiencies.Earlier this month,GlaxoSmithKline said it willaxe 121 jobs from its work-force of 460 at its plant atCurrabinny in Cork Harbour,saying the cuts were neces-sary for the facility to main-tain its competitiveness.

Earlier this year, Pfizer

said it would cut up to 800jobs in Ireland as part of agroup-wide cull of 6,000positions following its acqui-sition of Wyeth as it integrat-ed the worldwide operationsof the two companies.

Despite the jobs losses, thepharmaceutical and biotech-nology industry here is farfrom being in decline. IDAchief executive Barry O’Learyrecently said that redundan-cies in the pharma sector hadto be “contextualised” interms of what was happeningfrom a global perspective tothe industry. He maintainedthat Ireland hadn’t been asbadly hit as other countriesand pointed to the fact thatthe country was positionedto benefit from what he saidwas “strong global growth” inthe sector.

It’s a given that as the coun-try licks its wounds from itsill-judged love affair withproperty, that the pharmaceu-tical and biotechnology indus-try will remain one of the keydrivers of real economicgrowth. But there is littleroom for complacency either.

Addressing the LemassInternational Forum lastmonth, Paul Duffy, vice pres-ident of operations withPfizer Ireland, warned thatmanufacturing needed to betreated as a core element ofthe government’s ‘smarteconomy’ drive.

“Stand alone manufactur-ing can easily move acrossborders, but when manufac-turing is the base aroundwhich we build productdevelopment, marketing,distribution and supplychain services becomes moreembedded into the Irisheconomy and more impor-tant to the global corpora-tion,” he told the conference.

“Excellent research isbeing conducted in universi-ties and hospitals and weshould focus on commercial-ising the potential output ofthis research,” he added.

“Stronger linkagesbetween the research com-munity and the manufactur-ing base would benefit bothand ultimately buildIreland's reputation forinnovation.”

Lionel Alexander, thepresident of the AmericanChamber of Commerce inIreland, and vice presidentof Hewlett-Packard Manu-facturing, also stressed theneed for Ireland to continu-ally reinvent its offering.

“If Ireland isn't a com-pelling location for compa-nies to conduct their manu-facturing, these productswill be produced elsewhereand the benefits that accruein terms of employment, thecontribution to Ireland's taxtake and the development ofinnovation will be lost".

PHARMACEUTICAL exports amounted to over €34bn in2008 with the sector contributing €1bn in corporation tax.

When we consider that Ireland is now the number onelocation outside the US for significant development andmanufacturing in biologics, it is clear that the pharmaceuti-cal sector is one of the success stories of modern Ireland.

The Government recognises the significant contributionthat the pharmaceutical, and other high value added sectorsthat invest in R&D, make to the Irish economy. Over the pastdecade we have trebled the level of investment in R&D, pro-viding enterprise support for R&D, investing in human cap-ital, physical infrastructure and the commercialisation ofresearch.

This investment has contributed significantly to anincrease in foreign direct investment (FDI), the competitive-ness of indigenous enterprise and to the creation

and application of new knowledge and technologies. It is no exaggeration to say that, in a relatively short peri-

od, we have seen a transformational change in Ireland’s sci-entific landscape.

The Government is committed to the transition to thesmart economy. For us, building a smart economy is aboutthe development and application of human capital - theknowledge, skills and creativity of people - and our abilityand effectiveness in translating ideas into valuable process-es, products and services.

In July last the Government re-affirmed its commitmentto R&D with the announcement of its planned capital expenditure investments programme for the period to 2016which will see a further significant investments in science,technology and innovation programmes to create new, high-quality jobs.

Still, we are aware of the challenges that must beaddressed. We need to translate our investments intosustainable jobs and economic growth. Competitionfrom overseas locations has never been strongerso we must use innovation as an instru-ment to enhance our competi-tiveness.

I am confident, however,that the tremendous successwe have enjoyed in the phar-maceutical sector will contin-ue into the future and be repli-cated in other sectors as wecontinue to implement ourstrategy to develop Ireland asa leading knowledge economy.

When the recovery arrives it will be export led, says John Mulligan, and that is why the pharma sector is so vital

Leading the countryto recovery

PharmaIRELAND2010

Six of the top ten global blockbuster drugs, that is, drugs achieving salesover $1bn per annum, are currently manufactured in Ireland.

Employment prospects for graduates may look bleak,but there are still opportunities in the pharmaceuti-cal industry for those with good qualifications andthe right attitude, writes Kim Bielenberg?

Conor Lenihan, T.D.Minister for Science, Technology & Innovation

Ireland today is home to 8 of the top 10 pharmaceutical companies in the world who employ 20,000 people in 100 facilities. There are a further 44,000 employed in the wider life sciences sector.

Jobs market tightens but industrystill needs good graduates

A D V E R T I S I N G F E A T U R E

PharmaIRELAND2010

Campus Ireland

In an era of seeminglyunremitting doom andgloom the pharmaceu-tical industry is one ofthe few bright spots inthe embattled Irish

economy. Last year grossexports of pharmaceuticalsand other chemicals fromthis country were worth€47bn, more than half of ourtotal exports in 2009.

The single biggest contrib-utor to chemical and phar-maceutical exports was med-ical and pharmaceuticalproducts, which were worth€19.5bn, closely followed byexports of organic chemicals,which were worth €18.2bn.The combined total of€37.7bn represented 45pc oftotal Irish exports in 2009.

These exports mean thatthe industry is the singlebiggest contributor of corpo-ration profits tax to theexchequer, paying an estimat-ed €3bn in corporation profitstax and other taxes every year.

Pharmaceuticals are also amajor source of employmentwith just under 25,000 people,half of whom are third-levelgraduates, directly employedin the industry, which sup-ports a further 25,000 jobs insupplier companies.

When it comes to attract-ing foreign pharmaceutical tolocate in this country, Irelandhas consistently punchedabove its weight. In 2008, anestimated two out of everyfive pharmaceutical jobs cre-ated in Europe were inIreland. At present, 120 over-seas pharmaceutical compa-nies have Irish plants with 13of the top 15 global pharma-

ceutical companies havingIrish-based operations.

A major feature of theglobal pharmaceutical indus-try over the past decade hasbeen the pace of consolida-tion as the major playerseither merge with one anoth-er or take over smaller com-panies in the sector.

In the ten years to the endof 2009 there were over 1,300mergers and acquisitionsrecorded in the pharmaceuti-cal industry worldwide witha combined value of almost$700bn. These deals includ-ed Pfizer’s $56bn acquisitionof Pharmacia in 2002 and its$68n purchase of Wyeth in2009.

With virtually all of themajor pharmaceutical com-panies having Irish plantsthis wave of mergers andacquisitions has inevitablyhad a knock-on effect for thiscountry as the enlarged com-panies move to eliminateduplicated facilities and selloff non-core operations.

And the bad news is thatthere are almost certainlymore plant closures and job

losses to come. As the cost ofdeveloping new blockbusterdrugs becomes ever moreexpensive, the pharmaceuti-cal companies are finding itincreasingly difficult tomaintain the flow of new,branded drugs coming on tothe market.

Protected by patents, thesenew drugs earn the pharma-ceutical companies extremelyhigh margins, which in turnfunds the research & devel-opment needed to create thenext generation of newblockbuster drugs.

Unfortunately for thepharmaceutical companies,there are clear signs that theresearch-driven businessmodel, which has sustainedthem for over a century, isnow breaking down. Withthe pipeline of new drugsdrying up, they are in theunenviable position of seeingtheir blockbuster drugs comeoff patent with very little toreplace them.

Further adding to theindustry’s woes is that withhealth budgets under pres-sure from ageing populations

in virtually every country,governments are insistingthat doctors prescribe gener-ics where a cheaper alterna-tive is available.

In May of this year theIrish Department of Healthpublished proposals thatwould oblige retail pharma-cists to inform consumers ofthe availability of a cheaper,generic option if their doctorhad prescribed them a moreexpensive, branded drug. TheDepartment also plans tointroduce “reference pricing”under which it would onlypay the cost of the cheaper,generic drug. If the patientinsisted on purchasing themore expensive, brandeddrug, then he or she wouldhave to pay the differencethemselves.

While both the retail phar-macists and the IrishPharmaceutical HealthcareAssociation (IPHA), whichrepresents the pharmaceuti-cal companies, haveexpressed their reservationsabout the Department ofHealth’s proposals for refer-ence pricing and generic sub-

stitution, the likelihood mustbe that these proposals, orsomething very like them, willeventually be implemented.

These developments repre-sent a major challenge forthe Irish pharmaceuticalindustry. If Ireland is toretain the operations alreadybased here and attract newones then it must move frombeing purely a manufactur-ing base to also become aresearch centre.

Earlier this year the IrishClinical Research Infrastruc-ture Network, which repre-sents all of Ireland’s medicalschools, published its ClinicalResearch Roadmap, whichoutlines the steps this coun-try needs to take to develop asustainable national systemto support clinical research.This would embed overseaspharmaceutical companiesfar more deeply in the Irisheconomy and help create anenvironment in which moreindigenous pharmaceuticalcompanies can develop.

“Ireland has a uniqueopportunity to position itselfas a hub for clinical research.Bringing early stage clinicaltrials to Ireland would alsohelp ensure prompt accessfor Irish patients to innova-tive medicines once the med-icine has been approved,thanks to the familiarisationof consultants at a very earlystage of the testing of medi-cines, while at the same timehelp process of embeddingthe sector in the Irish econo-my at an ever-higher level ofsophistication and value,”according to IPHA chief exec-utive Anne Nolan.

cations and can include too much, too little, or none of theactive ingredients they should.

Despite that risk, research commissioned by Pfizer pub-lished earlier this year, found that one in five Irish peopleadmitted to buying prescription medicine from illicitsources. The main reason cited was the desire to savemoney, followed by the fact that buying online is quick andconvenient.

In fact, consumers everywhere are buying in their droveswith a seven-fold increase in purchases in the EU over a two-year period with no sign of a slow down. But a spokesper-son for the Irish Medicines Board (IMB) says that you do notknow what the product actually contains.

“Even if they contain the active ingredient thatis listed on the package, often they are made

in premises that are not suitable orhygienic for producing any product forhuman consumption. There may bemicrobial contamination or the ingredi-ents may be in the incorrect quantitiesthus creating risk to health.”

Last month the IMB together with theGardaí and the Customs Service detainedover a quarter of a million counterfeit

medicines in Ireland in an operation calledPangea III. The confiscated tablets largely related to erectile dysfunction pills, weight loss,

ACCORDING to Ronan Collins, Communications Managerof the Irish Pharmaceutical Healthcare Association (IPHA),“a frightening 62pc of medicines purchased on the internet

were fake or substandard according to a 2008 report.”Not only can these medicines contain

harmful ingredients but theyare often produced by

people without theappropriate qualifi-

antibiotics, hormones and steroid products, anti-depres-sants, pain killers, cardiac medication, anti-cholesterol, stimulants/amphetamines, cancer medication and insulin.

So what did these counterfeit products contain?According to the IMB, three types of sexual enhancement

product; Virmax Plus, Virmax and Viger, contained not justone active substance but two. This means the manufacturerdid not have enough active substances to continue produc-tion and simply added a different active substance regardless of the effects that this could have on the personconsuming it.

The substance ‘Sibutramine’ is banned in the EU due tohealth risk concerns, but that hasn’t stopped it appearing inmedicine sold online.

Sibutramine was found in Botanical, LiDa, Lipro and Slimas well as herbal Payouji tea, Pai You Guo Slim Capsules andLeisure 18 Slimming Coffee, all slimming products promot-ed as “herbal” or food products.

It is very easy to buy any of these drugs from Internetpharmacy websites and, aside from our health, there is alsothe startling cost to the Irish economy.

The ‘Cracking Counterfeit Europe’ research published thisyear puts a figure of €10.5bn on the European-wide blackmarket for medicine.

In Ireland the counterfeit medicine market is worth €86million. It is money that is leaving our economy and all fordodgy tablets and suspicious capsules.

Dave ShanahanGlobal Head of Life Sciences, IDA

As a global test bed, Ireland can lead the way in developing and marketinga high performing healthcare system, writes Nuala Ryan

With anunparal -leled rep-u t a t i o nfor mak-ing phar-

maceuticals, Ireland isrecognised globally as beingone of the most high qualitylocations for pharmacy inthe world. Going forward,we need to build on thisreputation and worktowards creating a globaltest bed that will secure thefuture of the life sciences inIreland.

The pharma industry isarguably the primary inno-vator around new medicinesand Ireland is ahead of mostother locations globally in

terms of where the industryis going with biotechnology.The challenge now is to lookat what key services can bewrapped around the sector.

As the second largestexporter of medical devicesin Europe, the goal nowmust be to take these smartdevices, match them withsmart drugs and do that allhere in ‘Campus Ireland’. Weneed companies to look atIreland as the one-stop shopfor all these solutions.

The industry is movingtowards a partnershipbased on working withpatients and the healthcareprofessionals. This move ishugely important – whenyou start to consolidate all

that data and bring it backin through bioinformatics,suddenly you have the abili-ty to manage your healthsystem. And the countrythat can develop a high per-forming healthcare care sys-tem can market those com-petencies to the world.

“We have the capability todo this because of our ICTbase,” says Dave Shanahan,Global Head of LifeSciences, IDA. “With ourbiopharma base and regula-tory capabilities, there is noreason why Ireland couldn’tlead the way and that’s whatwe are working towards.”

So is Campus Ireland pos-sible? In terms of develop-ing new products, the Irish

pharma industry has provencompetency in manufactur-ing small volumes and bigvolumes meaning it canmake for the clinic and forthe world. There are verygood frameworks in placefrom Government, be theyunder incentives, corpora-tion tax rates, R&D tax cred-its and, in the NationalInstitute for BioprocessingResearch and Training(NIBRT), you have a pool ofhighly-skilled people thatwould be a very strongattractant for companieslocating their operationshere.

For such a small country,Ireland is home to a largenumber of major players.

Now the challenge is to findnational solutions likeNIBRT for our medicaldevice industry and for con-vergence, which brings ICTinto play. Whether it is theelectronic patient record oradvanced imaging, the keyis to use the companies thathave already invested hereand those that we canattract in the future to orig-inate these solutions withthe HSE.

Ireland is a logical placefor these developments tohappen. The jigsaw piecesare on the table – the chal-lenge is in putting thepieces of the puzzle togeth-er. But Ireland can lead the way.

Beware of fake drugs … Rat poison, boric acid andlead paint; three ingredients youwouldn’t expector want in yourmedicine, yetthey could bethere if you buy yourdaily dose online, writesTina Leonard.

Research the key to pharma futureThe pharmaceutical industry is one of the great success stories of the Irish economy supporting almost50,000 jobs and contributing almost half of our total exports. However, with the global pharmaceutical sector consolidating, the industry faces new challenges going forward, writes Simon O’Donovan

Ken HardyHead of R&D tax credit, KPMG

A D V E R T I S I N G F E A T U R E

PharmaIRELAND2010

IN the current climate, it is important to choose a lastingcareer path and the pharmaceutical sector, a valuable mainstate to our economy, remains a viable option

By undertaking a pharmaceutical course at DIT studentswill emerge equipped to enter the industry and be usefulemployees within the pharmaceutical sector.

The BSc in Manufacture of Medicinal Products aims toprovide graduates with scientific and analytical skills inaddition to a practical problem solving ability.

The programme was delivered in a flexible manner overFridays and Saturdays to facilitate those with other commit-ments.

Of the 26 students who took the course this year, 20 camethrough the Labour Market Activation scheme funded bythe Higher Education Authority (or HEA), with the remain-der already working in the industry and so a support net-work between the two groups was established.

The programme has also proven very useful for thoseworking within the industry as they can re-establish the sci-entific basis of what they do and assess the professionalopportunities available.

Meanwhile, the postgraduate diploma/MSc inPharmaceutical and Chemical Process Technology wasdesigned for those who have a degree in the area and wishto improve their skill set. The course is delivered throughlectures, practical work, case studies and tutorials. Studentsalso take a module in entrepreneurship, which will assistthem if they wish to set up their own business in the future.

For more information visit chemistry.dit.ie

Mags Hyland graduated from the BSc in Manufactureof Medicinal Products this year and hasn’t looked backFor Mags Hyland, becoming redundant gave herthe push she needed to get back into educationand take on a course she had long dreamed of.

“It was a big undertaking. I didn’t realise whatI was taking on at the time. I had hated school butthe way the course was delivered made it such apositive experience.”

Now back in employment and working in thepharmaceutical industry Mags has high hopes forthe future.

“I’m considering doing an honours degree andfurther down the line I’m going to do a Masters.”

Realise your full potential atDublin Institute of Technology

WHILST the tax treatment of research & developmentisn’t always seen as a headline benefit in the manner ofcorporation tax or labour costs, it is a key aspect ofinvestment decision-making by both multinationals andindigenous businesses.

The R&D tax credit was first introduced in 2004 andwas raised from 20pc to 25pc in 2008. It allows any com-pany carrying out R&D activities a 25pc credit to theextent that the expenditure incurred is incremental toexpenditure carried out in the base year of 2003.

So what are the economic and business benefits of aprogressive R&D tax credit regime? According to KenHardy who heads KPMG’s R&D tax credit team, “forIreland, R&D has the potential to be a catalyst in helpingdeliver highly skilled jobs in an economy where too oftenthe words ‘smart economy’ have become over used.”

In terms of assessing business attitudes to the taxtreatment of the R&D credits regime, KPMG has againcommissioned market research to assess the issues. Thefindings of their annual survey will be launched as partof Dublin’s Innovation Week at The Conrad Hotel onFriday November 12.

Take a Closer Look 2010/11 assesses the role of the R&Dtax credit regime in encouraging economic activity, itsimpact on investment decisions and how well the currentscheme works.

Conducted by RedC research, it looks at the attitudesand opinions of a broad spread of business in Ireland.The research findings are sure to be of interest to thosein both the pharmaceuticals and broader business sec-tors, as well as those in government, policy makers, aca-demics and all those with an interest in Ireland’s futureeconomic development.

To register to attend the launch, email innovation@kpmg.ie or visit www.kpmg.ie.

Take a Closer Lookat R&D tax credits

A strong focus on researchand development indicatesa bright future for the pharmaceutical industry

Marguerite LarkinHead of Life Sciences, Deloitte

It will be companies thatcan sustain theirfocus on innova-tion who will be thewinners in the lifesciences industry,says MargueriteLarkin, head of life sciences at DeloitteTHE life sciences industry in Ireland has weathered thestorm of recession quite well. However, the drive to cutcosts, reduced corporate cash earnings combined with alack of liquidity in the capital and debt markets is impact-ing on the level of investment in R&D and innovation –the pulse of the life science industry. Irish subsidiaries oflarge multinationals are facing increasing competitionfrom within their own organisations for financialresources to fund projects, and the threat of emergingmarkets is forcing them to cut costs and work more effi-ciently in order to compete.

Irish indigenous and mid market companies are alsosuffering from undercapitalisation issues and shouldfocus on collaboration with both similar companies with-in the industry and larger players as joint ventures,

alliances and outsourced R&D agreements become moreprevalent in order to fund new product research. Many ofthe institutional and venture capital funds are looking forprojects and products that can provide an early return oninvestment. One big positive continues to be Ireland’s taxregime as a number of improvements to support R&D andinnovation have been implemented.

WITH the expiry of patents on a number of blockbusterdrugs the global pharmaceutical, biopharmaceutical andchemical industries face a challenging decade ahead

This sector is hugely important to the Irish economywith products exported in 2009 valued at €47 billion.Therefore it is paramount that the industry is well pre-pared for the challenging time ahead and ready to absorbthe effects of the first of these major patent expiries, thatof Pfizer’s cholesterol reducing product Lipitor in late 2011.

Once a blockbuster comes off patent, revenues fallsharply, by up to 80%, as cheaper versions flood the sec-tor. In fact, many commentators predict as much as a€100 billion drop in revenues over the next five years.The pharmaceutical industry’s initial response to marketpressures has been to combine operations. Pfizer- Wyethand Merck-Schering Plough have consolidated in anattempt to enhance their product and research portfolios.

In March of this year, PharmaChemical Ireland pub-lished a major strategy outlining how the industry inIreland will meet these challenges. The document,Innovation and Excellence, proposes that the industry inIreland becomes a recognised centre for innovation anddevelopment in the sector. Central to the strategy is thegrowth of development activities within the sector,anchoring manufacturing along the so-called develop-ment + manufacturing (D+M) model and positioningIrish sites to be the sites of choice for new product launchbringing them more centre stage in global supply chains.Therefore it is vital that the industry collaborates activelywith the research community in order to build this type ofcapability both on site and in the research infrastructure.

Expiry of patents on blockbuster drugs manufacturedin Ireland is not the only hurdle the industry faces. A ris-ing cost base, competition from Asia and other locationsand the further consolidation of supply- chains are preva-lent factors that will erode the country’s manufacturingbase unless action is taken. Research, development andinnovation will drive the industry forward.

Companies need to embrace the concepts of manufac-turing and supply-chain excellence, as well as those of on-site innovation, such as process and product development.

Ultimately, If Irish sites achieve this goal and the coun-try can become global centre of excellence for develop-ment and manufacturing, they will be well positioned toparticipate meaningfully in discovery-related activities.Also, opportunities for indigenous companies in areassuch as high-end synthesis, biotechnology, contractresearch, specialist centres and contract manufacturingwill inevitably emerge, producing a much more embed-ded, integrated and sustainable sector.