A new report has warned that US tariffs could disrupt Ireland’s €72bn pharmaceutical exports.
The study carried out by global consultancy group Sia states that shifting US trade policies could also drive up cost and force multinational companies to reconsider their operations in the country.
It warns that without action, such policies could erode Ireland’s position as a biopharma powerhouse.
The report, titled ‘Irish Biopharma at an Inflection Point’, sets out a roadmap for Ireland to mitigate these risks and strengthen its biopharma industry through implementation of a national strategy including the adoption of several recommendations.
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 must enhance its value proposition beyond traditional tax advantages and build collaborative innovation clusters that integrate industry, academia and startups to create a fertile ecosystem for sustainable growth,” the study recommends.
Ireland exported approximately €72bn to the US last year, a large proportion driven by pharmaceutical products manufactured by US multinationals.
Niall Cunneen, Associate Partner Ireland & UK at Sia said Ireland has long been a leader in pharmaceutical manufacturing.
“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,” he said.
“Our reliance on US pharma for employment and corporate tax creates a significant risk for Ireland’s economy.
“The study underscores the urgency for government, industry and academia to collaborate on future-proofing Ireland’s competitive position in the global biopharma sector,” he added.
