Looming threats to Ireland’s €116bn biopharma sector may require policy overhaul.
The spectre of Trump tariffs and other protectionist measures could disrupt Ireland’s €72bn worth of exports to the US and lead to potential job losses.
In particular, Ireland is now the world’s third largest exporter of pharmaceuticals and overall this sector is worth €116bn to the Irish economy, according to global consulting group Sia.
“Only 5% of facilities are dedicated to R&D, meaning Ireland has yet to cultivate a strong indigenous innovation ecosystem”
A Sia Partners study ‘Irish Biopharma at an Inflection Point’ reveals that without swift and strategic action, protectionist US policies and shifting global trends including increased competition from other countries, could erode Ireland’s position as a biopharma powerhouse.
Shoring up biopharma export defences
Ireland exported approximately €72bn to the US in 2024, a large proportion driven by pharmaceutical products manufactured by US multinationals. Protectionist measures, the study said, could lead to Irish job losses, reduced investment and a potential reduction in IP registered here resulting in a decrease in corporate tax receipts.
Key actions include boosting domestic innovation by increasing R&D investments through dedicated investment funds. It calls for digital transformation in manufacturing and addressing the skills shortage in bioprocess engineering, data analytics and clinical development.
“Ireland has long been a leader in pharmaceutical manufacturing, hosting over 85 multinational sites that drive exports and economic growth,” said Niall Cunneen, associate partner, Ireland and UK at Sia.
“However, this success has come with a trade-off: only 5% of facilities are dedicated to R&D, meaning Ireland has yet to cultivate a strong indigenous innovation ecosystem. Our reliance on US pharma for employment and corporate tax creates a significant risk for Ireland’s economy.”
“Global leaders such as the US, China and Switzerland have combined R&D, venture capital and cutting-edge technology to build more resilient biopharma sectors, a model Ireland must emulate to remain competitive. The study underscores the urgency for government, industry and academia to collaborate on future-proofing Ireland’s competitive position in the global biopharma sector.”
Coupled with broader economic headwinds such as inflation, fluctuating interest rates and the looming ‘patent cliff,’ the industry’s long-term stability is at risk, demanding immediate strategic action, the study said.
Beyond manufacturing, the Sia study stresses the importance of fostering indigenous biopharma growth. Financial and commercialisation support should be introduced to develop domestic enterprises and reduce over-reliance on foreign multinationals.
Strengthening links with life sciences clusters in the EU and UK, such as Belgium and Denmark, will also drive collaborative innovation, the study recommended.
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