Challenges faced by Ireland's pharmaceutical industry
In recent months there has been significant concern regarding the spectre of US tariffs and other protectionist measures and it was feared that these could disrupt Ireland's multi-billion worth of exports to the U.S., potentially leading to job losses and reduced investment.
However, recent US- EU discussions have indicated that tariffs on pharmaceutical imports would be capped at 15%, with generic pharmaceuticals exempted. While still representing a challenge for the industry, the proposed cap brings a level of predictability and stability to the industry in Ireland and is a far cry from the 250% tariffs that the US administration had previously indicated.
An interesting outcome of the recent talks is the proposed exemption for generic pharmaceuticals. This could see an expansion of this type of manufacture in Ireland, especially given the significant numbers of blockbuster pharmaceuticals coming off patent over the next 10 years, such as Ozempic (semiglutide), Keytruda (Pembrolizumab) and Eliquis (Apixaban).
Separately, the current US administration's approach to healthcare and pharmaceutical regulations has introduced uncertainties that could affect the industry's operations and compliance requirements.
Additional risks include infrastructure limitations, such as issues with water, wastewater, energy grids, and the ever-present issue of the dysfunctional housing market. These factors may affect Ireland's capacity to attract new investment and maintain current businesses.
It is hoped that these limitations will be mitigated by the recently announced €200 billion National Development Plan (NDP). This represents the most ambitious investment programme in the State’s history.
This plan will focus on key areas of interest to the pharmaceutical industry including funding for housing, water, and energy. However, it is yet to be seen how rising construction costs, planning delays, and labour shortages impact on these projects.