Ireland continues to be well positioned to take advantage of global trends in the life science sector, according to a recent report.
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A resilient industry
Ireland’s medical technology sector has evolved into one of the leading clusters for medical device and diagnostic products (see Table I). Ireland-based companies design, develop and manufacture medical devices and technology platforms that are exported across the world. Although the economic crisis has been severe, Ireland has demonstrated resolve and flexibility in addressing its challenges. At the same time, the qualities that make Ireland a great place to do business remain unchanged, and the medtech industry continues to display resilience and, indeed, dynamism. Here are some announcements of note so far in 2010:
- Creganna acquired Avalon Medical Sciences in January in a deal that could increase the company’s revenues by 50%. Now known as Creganna-Tactx Medical, the company becomes one of the top 10 global providers of technologies and services to minimally invasive device companies.
- Veryan closed a €4-million round of investment led by Dublin-based venture capital firm Seroba Kernel in March. The company has developed a coronary stent product.
- Also in March, Clearstream signed a contract for the distribution of its catheters in a number of Latin American and Caribbean territories.
- GE Healthcare joined Intel and leading Irish universities in April at the world-class Technology Research for Independent Living (TRIL) Centre. GE Healthcare is investing US$3 million in the TRIL Centre.
- Biotrin announced in June that it would create 40 new jobs in Dublin. It will establish corporate headquarters for the molecular diagnostics research and development business of Italian parent company Diasorin.
- In July, Merit Medical announced that it will invest €6.7 million and create 100 new jobs at its Galway facility, which is now designated as its European centre.
The rewards of consistency
The sector’s success is the fruit of a 40-year strategy adopted and refined by successive Irish governments and agencies to attract internationally mobile investment and grow indigenous companies. Nonetheless, as an export-driven sector, the future success of industry is highly dependent on international events. A general analysis of both the global and domestic economies throws up more positives than negatives. Forecasts for global GDP growth have been revised upwards, with the IMF now expecting growth of more than 4% in both 2010 and 2011.
In Ireland, data for Q1 show that GDP grew by 2.7% relative to Q4 2009. The trading sector benefitted from the international recovery: exports in the first quarter grew by a robust 6.9%. Improving international demand and the significant weakening of the euro over recent months has provided a much more positive environment for Ireland’s export sector.
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However, pressures on healthcare systems have resulted in a greater focus on enhanced efficacy of treatments and cost reduction. There is no sense of complacency across the sector in Ireland, where industry and government alike are constantly looking for new ways to enhance competitiveness, develop new capabilities and ultimately generate new sustainable growth.
Influencing national policy
A report titled Health LifeSciences in Ireland – An Enterprise Outlook published in November 2009 concludes that Ireland is well positioned to take advantage of global trends in the life science sector including convergence products and devices, functional foods, and remote diagnostics and healthcare delivery. Investments made in R&D in areas directly relevant to the sector, together with the country’s depth of capabilities in IT and communications technologies and engineering will continue to serve us well as we shift towards increasingly innovative and research-intensive activities, notes the report. Specific recommendations are being implemented by the national industry-led body, which includes representatives from industry, government agencies and the LifeSciences Alliance.
The Alliance, chaired by Paul Duffy, Head of Irish Manufacturing, Pfizer, is made up of industry representatives, enterprise development agencies, and representatives of the health sector in Ireland. It is tasked with driving and influencing the implementation of actions identified in the report as necessary to support the growth and evolution of Ireland’s life science sector.
“This report highlights the potential for Ireland to exploit global opportunities,” said Duffy at the announcement of the Life Sciences Alliance. “I see other countries throughout the world grappling with the imperative for a significant step up in collaboration across disciplines and stakeholders, so that businesses work more closely with researchers, clinicians, government departments and regulatory bodies. Ireland is a small country. We can more readily develop a compelling proposition through genuine collaborative action. The current economic uncertainties could serve to inhibit action but I think that the timing is ideal if we wish to lead the world in this area. I am committed to playing my part as chair of the Life Sciences Alliance in making this happen.”
The report’s recommendations include:
- leveraging existing resources and capacity across industry associations, enterprise agencies, academia and health representative bodies to best realise the potential of Ireland’s overarching health life sciences sector
- harnessing stakeholder commitment and engagement with the implementation process; ensuring a cohesive and coordinated approach to developing the sector across multinationals, indigenous firms and research institutes
- complementing and building on existing subsectoral activities and initiatives
- supporting relevant agencies and representative bodies in their marketing and communications activities to present and promote a holistic view of the health life sciences sector in Ireland (both nationally and internationally).
While focusing mainly on the medium- to long-term opportunities for the life sciences sector, Health LifeSciences in Ireland – An Enterprise Outlook emphasises the need for immediate action to address cost competitiveness issues and enable industry to continue to operate effectively.
Sharon Higgins
is Director of the Irish Medical Devices
Association, Confederation House, 84–86 Lower Baggot Street, Dublin 2, Ireland
Association, Confederation House, 84–86 Lower Baggot Street, Dublin 2, Ireland
tel. +353 1 605 1529
e-mail: imda@ibec.ie [5]
www.ibec.ie/imda [6]