A national asset

Dave Shanahan shows us how a country as relatively small as Ireland continues to push the industry in every possible context – and with the biggest possible heart.

What does 2011 hold in store for the pharma industry and where does Ireland fit in?

It's going to be challenging. The industry is struggling due to the lack of new chemical entities, US healthcare reform, a lack of blockbuster products, big losses in patent protected revenues and market share losses to generics. The hurdles companies have to go through today to secure marketing authorization are enormous. Many products on the market today would not pass the threshold that regulators are now imposing. Ireland's competitiveness has greatly improved with a decrease in operating costs. Our multi-national exports are performing very strongly.

Will Ireland continue to be a focus of growth and opportunity globally?

I believe Ireland is known for high quality production, tight regulation and good chemistry to innovate both in formulation and in the process development. Our main priority is to produce a global product at a preferential quality and cost standard. We have efficient operations focused on what the market will need for the future. It isn't enough to produce a quality powder or tablet. One has to think about the elements required around that formulation that both regulators and payers will value while superior for patients. We recognize we need tailored value propositions for emerging markets.

What are the major challenges facing the industry?  

It's very apparent the larger companies are not getting productivity out of R&D pipelines like they did 10 years ago. The industry's model of scientific excellence is insufficient for healthcare systems, which are financially creaking. In order to satisfy more demanding customers, innovation under every heading of operations is critical. I think companies are struggling with how to innovate quickly and efficiently in a dynamic and increasingly competitive marketplace. It is difficult to secure a price and volume that rewards the R&D investment, as in times past.

How is IDA showing support for companies wishing to locate in Ireland?

IDA was built when the Irish government really embraced open trade. We're a global organization with offices all over the world and we have developed strong relationships with most global companies. We focus on innovative corporations and where and how Ireland can provide these companies with competitive advantage. We work as part of a national system to provide affordable costs and dedicated inputs for businesses to grow. Our R&D and innovation supports are matched by a first-class workforce, access to global markets and an attractive corporate tax rate. We continue to develop those strengths, e.g. NIBRT (National Institute for Biopharma Training & Research) is meeting the skills and development needs of this critical sector with a $70M investment from IDA, supporting manufacturing companies who locate here.  

What are the key pharmaceutical sectors in Ireland?

Ireland is represented in most pharmaceutical sectors. Since the 1970's we have grown a very large pharmaceutical base over 83 sites, manufacturing six of the global blockbuster drugs. We are excited by Biotech. The prediction is that by 2016, half of the global pharmaceutical revenues will come from biotech and specialty products. We are developing our biotech and specialty product capabilities. We like specialty products because they are often difficult to make or require complex supply chains. That is appealing because premium products require premium support and we compete effectively there. We have developed strong pharmaceutical support services which enable many Irish sites to operate as global hubs.

Pharmaceutical companies thrive in Ireland due to the unique and talented workforce. Why is that?

The pharmaceutical industry in Ireland has a superb reputation. I think the difference is that in Ireland we don't talk about drugs, we talk about medicines. Our workforce is centered on bringing confidence, competence and a can-do attitude to the industry. People really make the difference. The industry here can secure the brightest and best. The success of Ireland as a center for global investment is due to the exceptional collaboration between Government agencies, industry, academia, education and regulatory authorities. The stakeholders work together on a national level to ensure that companies have the facilities, resources and assistance to grow their business. We consider innovative medicines, their development and manufacture a national asset.

Dave Shanahan, Global Head of Life Sciences, IDA Ireland

Shanahan is responsible for attracting multinational investments to Ireland in the areas of Pharma, Biopharmaceuticals, Medical Tech/ Devices, Food and Healthcare Services. His 22 years of experience in the healthcare industry includes working with Johnson&Johnson, ICI, AstraZeneca and Pfizer.