The pharmaceutical and chemical sector in Ireland is one of the strengths of the economy, remarkably resilient, strong on exports and virtually recession proof. The sector continues to expand, with increasing activity by indigenous companies. The pharmaceuticals and chemicals sector accounts for a third of all Irish exports.

This sector has been built up from a greenfield start 30 years ago and by now, out of the world’s top 15 pharmaceutical companies, no fewer than 13 have manufacturing operations in Ireland, many of them centred close to Cork city in the south of the country. The companies include such familiar names as Johnson & Johnson; Lilly; Merck Sharp & Dohme and Schering-Plough. Some of the world’s best-known products are made here, including Viagra, made by Pfizer in Ringaskiddy, Co Cork and Botox, made by Allergan in Westport, Co Mayo. The growth of these worldwide companies in Ireland has also provided sub-contracting opportunities for Irish companies, in everything from software services to stainless steel fabrication.

The pharmaceutical manufacturing sector has about 150 companies, of which 40 are smaller indigenous firms. Irish-owned companies are very successful in the various sub-sectors of the pharmaceutical products market. In human pharmaceuticals, a dozen companies make mainly generic products and carry out sub-contracting work, while a number of other manufacturers provide vitamins and mineral supplements. In addition to human pharmaceuticals, veterinary pharmaceuticals are also an important sub-sector, with over half a dozen companies active. The largest company, Cross Vetpharm in Dublin, employs 200 people.

Another area where Irish suppliers are expanding and offering new products is diagnostics. The largest firm in this area, Trinity Biotech, which is based in Wicklow, employs 200 people making diagnostic tests for pregnancy as well as tests for such conditions as Hepatitis B; HIV and Strep B.Other sectors that are close to pharmaceuticals, such as biotechnology, medical devices and international healthcare services, are also well represented by indigenous companies in Ireland. Primary growth areas include diagnostics and biotechnology.

Moves are well under way by Enterprise Ireland to encourage further enhancement of existing companies right across the indigenous pharmaceutical sector. Exports are already strong and have much potential. In human pharmaceuticals, over 80 per cent of exports are to the UK, but in veterinary pharmaceuticals, about 35 per cent of exports are to the UK and over 20 per cent to the rest of the EU. The whole sector is characterised by strong growth patterns, approximately 11% a year, and a strong commitment to research and development investment, about 12 per cent of annual sales revenue.

Investment in the whole sector continues apace. Work is well under way on the biggest single investment in the sector, the US-owned Wyeth biopharmaceutical plant in Dublin, a 1.2 million sq.ft. facility due to be completed in 2005.  When commissioned, it will be the biggest single biopharmaceutical site in the world. The continued strong performance by the indigenous companies is encouraging them to develop and expand their investment plans. Enterprise Ireland is also investing in the further growth of this sector and plans to assist with the development of a large number of start up companies in the healthcare sector in the next five years.

Besides pharmaceuticals, chemical manufacturing is also performing strongly. It employs about 4,000 people, compared to the 20,000 who work in pharmaceuticals. As with pharmaceuticals, chemical manufacturing is made up of a mix of international and indigenous companies, with strong export performance, likely to be around €7 billion during 2003, out of the expected total of €35 billion for the whole sector this year.