Dáil Éireann Debate, Thursday - 7 November 2019
63. Deputy Michael McGrath asked the Minister for Finance if the 2013 analysis undertaken on the impact of the patent cliff on pharma-chem output here has been updated; if the risks have been assessed for biological medicines; and if he will make a statement on the matter. [45987/19]
View answerIreland has a well-established specialisation in the pharma-chem sector, which makes up a large proportion of total exports and contributes significantly to GDP.
As a result of the ‘patent cliff’ in 2013, my Department carried out research to assess its impact on pharma-chem output in Ireland. The research concluded that the ‘patent cliff’ caused a drop in both output and exports between the mid-2012 peak and the time of writing in late 2013, with the expected impacts on employment to be less dramatic. Pharma-chem was a relatively small contributor to total employment (less than 2 per cent), and those employed were highly skilled workers who, in the event of a demand shock, would be less likely to face skills mismatches compared to other sectors.
As the patent cliff related to the expiry of specific patents in a certain time period, this particular piece of research has not been updated. That said, my Department monitors and analyses trends in the pharma-chem sector on an ongoing basis, given the importance of this sector to the economy.
Pharma-chem exports have grown substantially over the last 18 months or so, increasing by 26 per cent to €86 billion in 2018. In the second quarter of this year, pharma exports grew a further 9 per cent year-on-year, with the sector now comprising 62 per cent of goods exports.
I am conscious of recent job losses in the broad pharma-chem sector, as well as in some other sectors of our economy. It is imperative that we continue to remain competitive, including by shifting resources into higher value added production.
Finally, the IDA will continue to work to secure new investment in key growth sectors of the economy, including the pharma-chem sector.
