Growing the Irish BioIndustry - Irish Business and employers ...

Growing the 

Irish BioIndustry 

A report from the 

Irish BioIndustry Association

Growing the 


A report from the 

Irish BioIndustry Association 

A promotional brochure produced by the Irish 

BioIndustry Association, the representative body 

for the biotechnology sector in Ireland. 

1

Disclaimer 

The contents of this brochure are provided as an 

information guide only with the intention of 

enhancing information about the Irish 

BioIndustry Association and the Irish 

biotechnology sector in Ireland. While every 

effort has been made in preparing material for 

publication no responsibility is accepted by or on 

behalf of the Irish BioIndustry Association for 

any errors, omissions or misleading statements 

in this brochure. 

2

Growing the Irish Biotechnology Industry 

Contents 

Introduction 4 

Irish BioIndustry Association 4 

The Reason for this Brochure 4 

Biotechnology Industry Survey: 

Trends and Forecasts 5 

A Knowledge-based Bio-economy 5 

Section 1: 

The Global Picture 6 

Life Sciences and Biotechnology – 

The Promise 6 

The Big Picture: Growth and Opportunity 8 

Europe, Life Sciences and Biotechnology 9 

Biopharmaceuticals 9 

Primary Production and Agri-Food 10 

Industrial Production, Energy and 

the Environment 10 

EU Strategy on Life Sciences and 

Biotechnology Review 10 

EU 7th Framework Programme for Research and 

Technological Development (FP7) 11 

Breadth and Scale of Biotechnology Opportunities 11 

Section 2: 

Developing A Knowledge- 

Based Bio-Economy In Ireland 12 

Towards a Knowledge-based Economy 12 

Infrastructure Supporting the Development 

of the Irish Bio-economy 13 

Achievement Highlights of the Irish Bio-economy 14 

Economic Strength and Stability 16 

Decade of Investment Growth and Opportunity 17 

Research and Innovation 18 

Biotech in Ireland 19 

Biopharmaceuticals in Ireland 19 

HE Sector and Industry Research Collaboration 20 

Agriculture and Food 21 

Marine 22 

Environment 22 

The Story So Far 23 

Section 3: 

Survey of the Biotech 

Industry in Ireland 24 

Survey Terms of Reference and 

Methodology 24 

Summary of Key Findings and Trends 25 

3 

Appendices 30 

Appendix 1: OECD List-based Definition of 

Biotechnology Techniques 30 

Appendix 2: IBIA List of Members 31


Association 

The Irish BioIndustry Association (IBIA) was formally 

launched ten years ago by the Irish Business and 

Employers Confederation (IBEC 1 ), in response to the 

needs of the rapidly emerging modern biotechnology 

industry. 

Today, the IBIA is the representative body for the 

Biotechnology industry in Ireland. Its membership 

encompasses all sectors of the biotechnology 

industry including manufacturing, distribution and 

biotech industry support services. 

The IBIA plays a key role in ensuring that the voice of 

the industry is clearly articulated and influential when 

it comes to the development of national policy, thus 

setting a strategic course for the development of the 

sector. Most importantly, it provides an effective 

forum vital for creating and sustaining strong 

relationships with government and the key interest 

groups within the Health and Life Sciences sector in 

Ireland, and abroad. The IBIA also stimulates lively 

debate and discussion on the challenges facing the 

biotechnology industry today. 

The main aim of the IBIA is to promote, support and 

encourage the continuous development of the multinational 

and indigenous biotech sector in Ireland. 

IBIA is a fulltime member of BIO (US 2 ) and 

EUROPABIO 3 . 

The biotechnology industry has found a natural 

home in Ireland, which has demonstrated its 

commitment to the development of the industry in 

the clearest possible ways. Ireland has created a 

highly structured supportive environment that 

provides the right conditions and the substantial 

resources necessary for encouraging strategic 

investment in innovation, research and development, 

business growth and commercial success, in this 

sector. 

The Reason for this Brochure 

This brochure was prompted initially by the many 

overseas requests received by the Irish BioIndustry 

Association for an overview of the Irish 

Biotechnology sector and the scope of activity 

supporting this rapidly developing industry in Ireland. 

4 

1 IBEC represents 7,500 member businesses and organisations from 

all sectors, providing a comprehensive range of services to its 

members and is the national voice of Irish business and employers 

2 BIO (US) is the representative organisation for biotechnology 

companies in the United States 

3 EuropaBio is the representative organisation for the biotechnology 

industry in Europe


Biotechnology Industry 

Survey: Trends and 

Forecasts 

A Knowledge-based 

Bio-economy 

As part of the development of the information 

brochure, the IBIA felt it would be timely to conduct 

a survey of the biotechnology industry 4 

in Ireland 

with the object of establishing at first hand an up-todate 

position on their business operations, current 

trends and future forecasts. The main findings of the 

survey are included (pages 24-29). 

In considering the scope of activity supporting the 

development of the biotechnology industry in Ireland 

a picture emerges of a country that is deeply 

committed to becoming one of the world’s leading 

biotech hubs and is already well on the way to 

becoming recognised as a leading knowledge-based 

bio-economy. 

The presence in Ireland of a well established global 

pharmaceutical industry with annual exports of 

€42 billion, combined with recent substantial multinational 

biotech investments places the country in a 

prime position for the growth and development of 

the sector. 

Unprecedented state investment in the development 

of infrastructure and the creation of a world-class 

research environment further advances Ireland 

towards its goal of becoming a world leader in 

innovation. 

4 Terms of reference for selection of 

companies surveyed was determined by 

the OECD definition of Biotechnology: 

“The application of science and 

technology to living organisms, as well 

as parts, products or models thereof, to 

alter living or non-living materials for the 

production of knowledge, goods or 

materials.” 

5

Section One THE GLOBAL PICTURE 

6 

“ 

Life Sciences and 

Biotechnology – 

The Promise 

There are currently over 6.4 billion 

people living on the planet, a 

figure which is increasing by 77 

million each year. By 2050, the 

United Nations estimates that 

total world population will be 

over 9.3 billion. The bulk of this 

population growth will occur in 

the developing world, where 

today over 1.2 billion people, 

mainly women and children, are 

living in extreme poverty. Coping 

with this future population 

increase will pose severe social 

and environment challenges for 

global leaders, not least of which 

will be providing enough food to 

go round. 

Life sciences and biotechnology 

are likely to be important tools in 

the fight to feed the world’s 

growing population. New 

biotechnology techniques have 

the potential to deliver improved 

food quality and environmental 

benefits through agronomically 

enhanced crops. Enhanced food 

and feed quality may be linked to 

disease prevention, and may 

result in the reduced use of 

chemical pesticides, fertilisers 

and drugs, leading to more 

sustainable agricultural practices 

in both the developed and 

developing world. Advances in 

biotechnology can also result in 

major healthcare benefits, 

allowing for the production of 

cheaper, safer drugs in large 

quantities. Personalised and 

preventative medicines based on 

genetic predisposition, targeted 

screening, and innovative drug 

treatments are among the 

possibilities on offer.


Despite these clear advantages, 

the subject of biotechnology, and 

genetically modified organisms 

(GMOs) in particular, has raised 

widespread public concern about 

the possible impact on human 

health and the environment. The 

sensitivity of this issue highlights 

the need for responsible policies 

at EU and international level to 

ensure these concerns are 

addressed and that the protection 

of the environment and human 

health remains a priority at all 

times. The EU has been 

legislating on GMOs since 

the early 1990s. 

These rules and regulations cover 

the use, traceability and labelling 

of GMOs or products and feeds 

containing GMOs and are 

designed to protect the health 

of both citizens and the 

environment. 

Stavros Dimos, 

“ 

EU Commissioner for the Environment 

7

The Irish BioIndustry Association 

The Big Picture: 

Growth and Opportunity 

The global picture today of the biotechnology 

industry is the opening chapter of an exciting story 

of innovation, research and development, global 

competitiveness, strategic investment, market 

positioning and the evolution of the knowledge 

economy. 

The report on the global biotechnology industry by 

Ernst & Young “Beyond Borders: Global Technology 

Report 2007” 5 

reveals a dynamic global industry 

sector experiencing robust growth and reports that 

capital raised by the world’s biotechnology 

companies grew by 42% in 2006 to US$27.9 billion 

and venture capital reached an all time high of 

US$5.4 billion. 

The report recognised Ireland among the top 25 

global locations for biotechnology. 

In Europe the report finds that revenue growth in the 

biotech sector of 13% in 2006 was more than twice 

the growth experienced in 2005 contributing €13.3 

billion revenues for public and private biotech 

companies. 

While these figures are impressive, of particular 

significance is that the pipelines of EU publicly traded 

companies grew 30% bringing the overall pipeline to 

nearly 700 compounds with 27 in registration 

awaiting regulatory approval. 

In addition to this healthy picture it is reported that 

Europe’s privately held biotechnology companies 

have some 800 compounds in their pipelines and 12 

compounds in registration. 

That said, it is also recognised that the development 

of new biotechnology applications is time 

consuming, expensive and requires access to 

significant resources, including specialist expertise 

and experience and infrastructure and finance. 

The development of the biotechnology industry is 

increasingly dependent on a collaborative effort 

between Industry, Higher Education and Research 

Institutes, National Governments, State Agencies and 

Venture Capital Companies. 

Financing increased by a dramatic 45% reaching 

€4.7 billion and Venture Capital financings of 

biotech reached its highest ever peak of €1.5 billion 

in 2006. 

5 Ernst & Young,“Beyond Borders: Global Technology Report 2007” 

8


Europe, Life Sciences 

and Biotechnology 

Biopharmaceuticals 

The European dedicated biotechnology industry 

directly employs nearly 97,000 people, mostly in 

SMEs, with 44% of employees involved in R&D 

activities. In 2004, biotechnology companies spent 

€7.6 billion on R&D 6 . 

Employment in industries that use biotechnology is 

many times higher. In 2004 the European pharmaceutical 

industry employed over 100,000 people in 

research and development alone and invested over 

€21 billion 7 . 

Following a request by the European Parliament the 

Biotechnology for Europe study (Bio4EU) 8 

was 

initiated by the European Commission and published 

in 2007. 

The study was a major undertaking and is likely in 

the future to become a benchmark of the early days 

of the application of this science. It supports the view 

that the future holds great potential for biotechnology 

based industry in Europe. 

The main biotech product groups are biopharmaceuticals 

with a share of 9% of turnover from all 

pharmaceuticals in the EU in 2005. Recombinant 

vaccines targeted at Hepatitis B had a share of 17% 

of turnover from all vaccines in the EU in 2005 and 

modern biotechnology based in vitro (IVD) 

diagnostics had a share of approximately 30% of 

turnover for all (IVD) in the EU in the same period. 

The report emphasises the point that modern 

biotechnology provides powerful tools not only for 

research and development work on biopharmaceuticals, 

but also on small molecule drugs, vaccines 

and diagnostics. 

The potential for growth in the biopharmaceutical 

sector appears to be very substantial. 

Overall the study found that modern biotechnology 

and processes are an integral part of the EU 

economy particularly in manufacturing, including 

pharmaceuticals, agri-food and healthcare and 

estimates that modern biotechnology accounts for 

up to 1.69% of the EU economy, comparable to 

other sectors such as agriculture (1.79%) or 

chemicals (1.95%) 9 . 

6 EUROPA: MEMO/07/130 Date: 11/04/2007 

7 IPHA: Healthcare Facts and Figures 2006, Research and Development 

8 Bio4EU, www.jrc.es 

9 Consequences, Opportunities and Challenges of Modern 

Biotechnology http://bio4eu.jrc.es/index.html 

9


Primary Production 

and Agri-Food 

EU Strategy on Life 

Sciences and 

Biotechnology Review 

Bio4EU also found that modern biotechnology 

affects large parts of primary production and the 

agri-food sector with respect to the breeding and 

propagation of crops; veterinary and food 

diagnostics, vaccines and enzymes for food 

production. 

Use of biotechnology-derived products by the EU 

agri-food sector contributes between 32% and 38% 

of its turnover. 

In a mid-term review of the EU’s Strategy on Life 

Sciences and Biotechnology 2002 -2010 10 

a new set 

of five interdependent biotech actions that require 

the collaboration of the European Commission, 

Member States, International Organisations, 

Universities, Research Organisations, Industry and 

Civil Society Organisations were proposed. These 

actions are geared towards ensuring that Europe 

maintains a competitive and sustainable knowledgebased 

bio-economy. 

Industrial Production, 

Energy and the 

Environment 

In Ireland, these linkages have been a strategic 

priority for the last decade. 

Proposed Actions 

The Bio4EU study found that generally where 

industrial biotechnology is applied it has positive 

economic and environmental implications e.g. 

industrial biotechnology reduces energy and water 

consumption and emissions including the 

greenhouse gas CO 2 . 

Promote research and development for biobased 

products and improve the uptake of 

new technologies 

Foster competitiveness, knowledge transfer 

and innovation from the science base to 

industry 

Encourage debate on the benefits and risks 

of life sciences and biotechnology 

10 

10 Communication from the European Commission to the Council, the 

European Parliament, The European Economic and Social and the 

Committee of the regions on the mid term review of the Strategy 

on Life Sciences and Biotechnology ref: IP/07/484 

Ensure a sustainable contribution of modern 

biotechnology to agriculture 

Improve the implementation of legislation 

and its impact on competitiveness.


EU 7th Framework 

Programme for Research 

and Technological 

Development (FP7) 

Breadth and Scale of 

Biotechnology 

Opportunities 

Under the EU 7th Research Framework Programme 11 , 

a budget for the next seven years of €50.5 billion 

has been allocated, of which €8 billion is specifically 

dedicated to Life Sciences and Biotechnologies. Of 

this, 75% will support health research a key area in 

which Ireland is well positioned to respond. 

FP7 is essentially the strategic funding mechanism to 

progress the Lisbon Agenda 12 

aimed at improving 

European competitiveness and knowledge base. 

The FP7 budget represents an increase of 41% on 

the FP6 budget and demonstrates the imperative for 

Europe to invest in life sciences and biotechnology 

and to build on the contribution made by past 

programmes, which included funding some 1,000 

full-time PhDs and attracting world-class researches 

to Europe. 

It is not easy to identify an area of modern scientific 

research and discovery that does not or may not in 

the future include some aspect of biotechnology. It 

has been suggested by some experts for instance 

that by 2020 as much as 50% of all pharmaceutical 

products will incorporate some aspect of 

biotechnology. 

In the field of science, genomics and biotechnology 

for health, €2.5 billion was invested in more than 

600 projects in 2006, looking at issues such as: 

■ 

■ 

■ 

■ 

Cancer 

Cardio-Vascular Diseases 

Diabetes 

Fundamental Genomics 

On the food side 186 projects were funded in the 

field of plant biotechnology, food safety and 

nutrition, to name but a few. 

Under the EU 6th Framework Programme for 

Research and Development, Irish researchers were 

successful in securing approximately €200 million 13 . 

All the indications are that life sciences and 

biotechnology applications are set to transform the 

pharmaceutical, health, diagnostics, agricultural, 

environmental and industrial landscape of Europe 

and the world. 

11 The Seventh Framework Programme for research and technological 

development (FP7) is the European Unions main instrument for 

funding research in Europe. FP7 applies to the years 2007-2013. 

See: cordis.europa.eu/fp7/ 

12 The Lisbon Agenda is an EU action and development plan to make 

the EU the most competitive knowledge-based economy in the 

world 

13 Department of Enterprise Trade and Employment, European and 

International Programmes 28/06/2007 

11

Section Two DEVELOPING A KNOWLEDGE-BASED 

BIO-ECONOMY IN IRELAND 

Towards a Knowledgebased 

Economy 

As an enabling technology with potentially 

multiple applications, biotechnology will play an 

increasingly significant role in the development 

of Ireland’s key industries: 

■ 

■ 

■ 

Pharmaceutical and Healthcare 

Agriculture, Food and Marine 

Medical Devices and Diagnostics 

The vision and objective of the Irish Strategy for 

Science, Technology and Innovation 14 

is: to 

achieve international renown for the excellence 

of its research, and, to be at the forefront in 

generating and using new knowledge for 

economic and social progress within an 

innovation driven culture. 

The Health and Life Sciences sector is integral to 

realising this objective and is central to Ireland’s 

National Development Plan (2007-2013), the key 

strategy for sustaining Ireland’s economic 

growth and contributing to the overarching 

objective of the renewed Lisbon Agenda to 

make Europe the most competitive and the most 

dynamic knowledge-based economy in the 

world. 

The pharmaceutical industry in Ireland is a 

central column of the Irish economy accounting 

for 45% of all manufacturing exports and Irish 

owned Agri-Food firms now account for 57% of 

exports from indigenous industries. 

Both of these sectors are at the very heart of 

innovative biotechnology research and 

development worldwide. 

Over the lifetime of Ireland’s National 

Development Plan (2007-2013) the state will 

invest €8.2 billion in scientific research 15 . 

12 

Science Foundation Ireland (SFI), the 

organisation responsible for providing awards 

to support scientists and engineers working in 

biotechnology and information and communications 

technology will invest €1.4 billion in these 

sectors over the life of the National 

Development Plan (2007-2013).


Infrastructure Supporting 

the Development of the 

Irish Bio-economy 

The process of building the support structures 

needed for a knowledge-based Irish bio-economy 

was accelerated a decade ago through a series of 

initiatives in response to the recommendations of the 

government commissioned Technology Foresight 

Report 16 . The report recommended strongly, that: 

“The Government must immediately invest, on a 

realistic scale, in a co-ordinated biotechnology 

programme, which builds strong links between 

universities, industry, agriculture and the financial 

services sectors”. 

For a decade now, following the acceptance of the 

report’s recommendations, substantial and 

unprecedented investment has been made by the 

Irish Government to help create a world-class R&D 

infrastructure with strong linkages between industry, 

higher education, state agencies, research 

institutes and government with the 

objective of establishing a thriving 

knowledge-based bio-economy 

in Ireland. 

14 Department of Enterprise Trade and Employment: Strategy for 

Science Technology and Innovation 2006 - 2013 

15 Source: Science Foundation Ireland (SFI) 

16 See Technology Foresight Reports of the Irish Council for Science, 

Technology and Innovation 1999 on ICTSI website 

13


Achievement Highlights 

of the Irish Bio-economy 

Building the Irish Bio-economy 

Putting in place the infrastructure to support this development has been a national priority over the last decade. 

Significant progress has been achieved consequently, and includes: 

■ 

The establishment of Science Foundation Ireland (SFI) with responsibility to invest €1.4 billion of the 

€8.2 billion that has been allocated for scientific research as part of the National Development Plan 

(2007-2013) and the Strategy for Science Technology and Innovation (2006 - 2013). 

■ 

The SFI Bioscience and Bioengineering Directorate currently funds 130 research principle investigators 

(PIs) and has invested €260 million in research projects in research areas encompassing agri-food, 

neuroscience, immunology, molecular and cell biology, microbiology, nanotechnology, sensors/devices 

and bioinformatics/systems biology. SFI also facilitate maximum participation in EU and other 

programmes. 

■ 

SFI has invested over €100 million establishing seven Research Centres for Science, Engineering and 

Technology (CSETs), including: 

■ 

The Biomedical Diagnostics Institute (BDI), Dublin City University, specialising in the development of 

next generation biomedical diagnostic services measuring indicators of chronic diseases for use in 

medical settings and at home. 

■ 

Alimentary Pharmabiotic Centre, (UCC) University College Cork is focused on the discovery, 

development and commercialisation of proprietary products for the treatment of gastro-intestinal 

disorders and other inflammatory conditions with a particular focus on the development of probiotic 

technologies and products. 

■ 

The Centre for Research on Adaptive Nanostructures and Nanodevices (CRANN), Trinity College 

Dublin, is an internationally recognised centre of excellence in nanoscience where there is a 

convergence of the disciplines of biology, chemistry and physics. 

14 

■ 

The Regenerative Medicine Institute (REMEDI), National University of Ireland, Galway is developing 

gene therapy to promote tissue repair and is currently working in cooperation with Medtronic Inc, a 

world leader in medical devices currently focussing on cardiovascular disease.


■ 

The Industrial Development Authority (IDA) has been particularly successful in attracting substantial 

investments into Ireland from global biopharmaceutical companies including Wyeth, Schering Plough, 

Genzyme, Elan, Merck Sharp & Dohme, Allergan, Pfizer, Gilead, and GeneMedix. There are more 

than 1,000 IDA supported foreign companies in Ireland. 

■ 

NIBRT (National Institute for Bio-processing Research and Training) is a world-class institute 

supporting the development of the bioprocessing industry in Ireland. The institute is based on 

collaboration between University College Dublin, Trinity College Dublin, Dublin City University and 

the Institute of Technology Sligo, providing training and specialist research for the bioprocessing 

industry. NIBERT is funded by the IDA. 

■ 

FAS bioprocessing training centre Cork is a new Bio Pharma Process Training Facility with government 

investment of €3.5 million. The new facility, which will provide “hands-on” practical training, is 

established in Carrigaline, Co. Cork. The establishment of this new facility is another important step 

in improving Ireland’s capability to continue to provide the training and supply of quality skilled 

operatives and craftspersons to these sectors.” 

■ 

Enterprise Ireland (EI) is the Irish development agency whose focus is on accelerating the 

development of Irish companies. The 2008-2010 strategy has set a robust target of 225 companies 

to achieve annual global sales by 2010 of €20 million each with a further 635 Irish companies 

generating more than €5 million each in the same period. 

Enterprise Ireland also established EI Bio, a specialised Biotechnology Commercialisation Group 

supporting the commercialisation of applied bioresearch into technologies that will form the basis of 

new start-up companies. 

■ 

In 2006 EI Bio invested €5.5 million in 14 new biotechnology projects. 

■ 

One hundred and twenty pharmaceutical companies now have operations in Ireland with 

pharmaceutical exports around €42 billion accounting for nearly 45% of all Irish exports, making 

Ireland the largest net exporter of pharmaceuticals in the world. 

■ 

The largest single investment in research infrastructure and capacity in the history of the state has 

been made in the Programme for Research in Third Level Institutions (PRTLI). Ireland now has more 

researchers per 1000 population than the EU average. 

15


Economic Strength 

and Stability 

Investment decisions by international companies, 

venture capitalists, governments or inspired 

entrepreneurs are always serious, often complex and 

inevitably involve some degree of risk. While many 

factors are considered before decisions are made, 

central to these will be the business, economic, 

taxation, social, educational and political context in 

which the investment may be located. 

These factors are good indicators of infrastructural 

capacity. Their relative strengths combined with the 

degree to which they interact are robust indicators of 

the presence or not of stability and investment 

opportunity. 

For potential investors in any sector of modern 

biotechnology it is also vital to see evidence of an 

active investor community in the crucial areas of 

Innovation, Research & Development and 

commercialisation. 

Ireland - Economic Highlights 

Real GDP growth has averaged 7.3% over 

the last ten years. Between 1994 and 2004 

GDP growth rates grew faster than in any of 

the OECD countries. 

Employment has expanded by 63%. In the 

same period and at 4.4% unemployment is 

the lowest within the EU. 

GDP growth is expected to average 3.5% 

over the coming three years to 2010 putting 

Ireland ahead of most of Europe and the 

OECD countries. 

Employment growth was 4.4% in 2006, 

with 86,700 net job increases. 

Businesses contributed 65.5% of funds for 

R&D in 2006 with 32.8% coming from the 

public sector. 

Robust Foreign Direct Investment: Ireland 

now has more than 1,000 foreign-owned 

companies directly employing more than 

135,000 people, accounting for exports of 

over €73 billion per annum. 

16 

Ireland now has 170 companies employing 

some 35,000 people in the pharmaceutical, 

biopharmaceutical, medical device and 

diagnostic sectors.


Decade of Investment 

Growth and Opportunity 

1. Currently 13 of the top 15 pharmaceutical companies 

in the world have substantial operations in Ireland 

and 6 out of 10 and 12 out of 25 of the world’s top 

selling drugs are produced in Ireland 17 . 

Pfizer 

Sanofi-Aventis 

GlaxoSmithKline 

AstraZeneca 

Johnson & Johnson 

Merck & Co. 

Novartis 

Roche 

Bristol-Myers Squibb 

Wyeth 

Eli Lilly & Co. 

Abbott Laboratories 

Boehringer-Ingelheim 

Takeda Pharmaceutical 

2. Over €4.3 billion has been invested by the pharmaceutical sector in Ireland the last six years. 

3. Pharmaceutical exports of €42 billion account for 45% of total manufacturing exports from Ireland. 

4. Recent substantial investments in Biopharmaceuticals in Ireland by Global companies include: Wyeth; 

Schering Plough; Elan; GeneMedix; Genzyme; Gilead; Pfizer; Merck Sharp & Dohme and Allergan. 

5. Eighty three pharmaceutical facilities employ more than 17,000 people in Ireland. 

6. A strong and innovative R&D environment is attracting internationally recognised researchers; five 

new biotechnology research centres and institutes have been established; and the number of 

researchers employed has risen dramatically in line with investment. A national training and research 

facility NIBRT has been established to support the sector. 

7. The State funded bio-commercialisation group, EI Bio, is successfully transferring research into the 

new biotechnology companies. 

8. Strong linkages between industry, higher education, state agencies, research institutes and 

government are facilitating rapid sustainable development. 

9. Ireland is growing new indigenous biopharma biotechnology industry - new bio-companies include: 

Merrion Pharmaceuticals, Opsona, Trinity Biotech, EiRx Biotrin, 

10. Unprecedented levels of investment in R&D in third level institutions (PRTLI) is bringing HE researchers 

and industry together in new collaborations. 

17 

17 Source: Industrial Development Authority


Research and Innovation 

Building a world-class research 

system is the prerequisite to 

Ireland’s goal of becoming a 

world leader in innovation. To 

achieve this objective, €8.3 

billion has been committed to 

implement the Strategy for 

Science Technology and 

Innovation (2007-2013). 

Allocation of the funding under SSTI is 

very substantial, led by the investment 

in world-class research: 

World-class Research STI €3.46 billion 

Enterprise STI 

€1.2 billion 

Agri-food research €641 million 

Health research 

€301 million 

Energy research 


Marine research 


Geo-science research €33 million 

Environment research €93 million 

Under the Strategy for Science Technology and Innovation Programme 

(SSTI), Irish Bio-technology industry will benefit from funding of more 

than €1.3 billion (2007-2013) . 

18 

Currently there are more than 10,000 researchers in Ireland working on 

cutting-edge research projects and many researchers have relocated 

from other countries. 

18


Biotech in Ireland 

Biopharmaceuticals 

in Ireland 

Biotechnology will increasingly influence pharmaceutical 

research and manufacturing; agriculture, 

food production and safety; industrial processes and 

the environment. It will become an integral part of 

the industries that represent the backbone of 

Ireland’s new economy. 

Ireland is emerging as a leading location for biopharmaceuticals. 

Industry leaders include Wyeth, Eli Lilly, 

Schering Plough, Genzyme, Centocor. Merck Sharpe & 

Dohme, Pfizer, Elan, GeneMedix and Allergan. This 

investment has facilitated rapid growth and development 

of the biopharmaceutical industry. 

Over recent years major biologics investments have 

been won by Ireland. The largest included Wyeth, 

Eli Lilly, Pfizer, Centocor and Merck Sharp & Dohme. 

These projects have included both large molecule 

and cell based vaccines plants. The projects have 

been focused upon both Development & 

Manufacturing which is proving to be a key 

competitive competence of Ireland. Industry trends 

in the direction of personalised, predictive and 

preventive medicine, supports the strategic 

positioning of Ireland in terms of building out the 

complete industry value chain and focusing from 

discovery through process development and 

manufacturing to regulatory and full 

commercialisation. 

Many of the pharmaceutical companies in Ireland have 

established a number of significant operations. For 

example, Wyeth’s new development is one of the largest 

integrated biopharmaceutical campuses in the world and is 

the only facility in Europe to manufacture biopharmaceuticals, 

pharmaceuticals and vaccines within the same 

facility. Other organisations have as many as six 

manufacturing operations in the country. Nine of the top 

ten Global Pharma companies have operations in Ireland 

and 6 of the top 10 global drugs are manufactured here. 

Thirty-three Irish based plants are approved by the FDA. 

Altogether Ireland has 170 companies employing some 

35,000 people in the pharmaceutical, biopharmaceutical, 

medical devices and diagnostic sectors. 

Wyeth’s new facility in Grangecastle County Dublin 

produces Enbrel which is a leading biologics blockbuster. 

The project is Wyeth’s largest capital investment globally. 

Centocor (J&J) has completed the construction in 

Ringaskiddy, County Cork of its new biologics launch 

facility. This is also the largest capital investment ever 

undertaken by J&J. as part of a major global biotech 

investment plan. Eli Lilly is building a new facility in Kinsale, 

County Cork which will be central to its corporate plans. 

18 Source: Industrial Development Authority 

Merck Sharp & Dohme are setting up a human vaccines 

and biologics facility in Carlow. The plan includes a formulation 

and sterile filling operation as well as an R&D facility 

to support a number of recently launched vaccines. Gilead 

has acquired Nycomed in Cork and is backward integrating 

into full scale manufacturing. Outside of the US, Ireland is 

the leading location globally for biologics production. 

19


Higher Education (HE) 

Sector and Industry 

Research Collaboration 

Collaborative biotech research projects between 

industry and Irish Universities are increasing and 

currently include the search for cures to arthritis and 

osteoporosis; the development of new drugs and 

vaccines to treat autoimmune and inflammatory 

diseases. 

Significant HE sector spin-off companies have also 

emerged, including: Opsona Therapeutics, Diabeteca, 

Biancamed and Alimentary Health, focused on a 

range of health issues including multiple sclerosis, 

rheumatoid arthritis, diabetes, gastro intestinal and 

sleep disorders. 

Significant discovery research is being undertaken by 

some of the overseas companies in Ireland. 

GlaxoSmithKline is collaborating with Trinity College 

Institute of Neuroscience and NUI Galway on a major 

R&D programme for the discovery of new therapies 

to treat Alzheimers disease. Separately GSK is 

collaborating in a gastrointestinal research project 

with the Alimentary Pharmabiotic Centre (APC) in 

Cork which is being co-funded by IDA and Science 

Foundation Ireland. 

A number of companies are now carrying out 

Translational Research in Ireland. These include 

Servier, Novartis and Schering Plough. This aspect of 

the research cycle is being supported by Molecular 

Medicine Ireland which brings together all of the 

countries medical teaching hospitals/schools. In 

addition the Irish Clinical Research Infrastructure 

Network (ICRIN) has been set up as a coordinating 

centre for national clinical research. 

Ireland has particular research strengths in 

immunology, neuroscience and oncology. Trinity 

College Dublin has been ranked No. 2 worldwide in 

terms of its immunology research which is a 

testament to the strengths of Ireland. This research 

has led to some campus companies such as Opsona 

Therapeutics which is focused upon toll like receptors 

(TLR’s). Opsona has collaborations with Wyeth and 

Organon BioSciences and its investors include 

Genentech. 

Wyeth's Irish investments include an R&D and 

Process Development Centre alongside its 

Grangecastle Biopharmaceutical Campus. This is a 

key part of Wyeth’s biologics development capability 

worldwide. 

20


Agriculture and Food 

The agri-food sector accounts for 9% of GDP, 

employment and exports. The industry employs in 

the region of 170,000 people. Irish owned agri-food 

firms account for 36% of employment and 57% of 

exports from indigenous industries. For many years 

agriculture has been the backbone of the Irish 

economy and culture – it is very much a part of what 

we are. From farm production to food processing, 

point of sale to the table there is a high degree of 

public interest in food quality and safety. 

As modern biotechnology is introduced to the 

process it is likely that there will be increasing 

expectations of justification and explanation for its 

use at any and all stages. Legitimate public concern 

is likely to create an onus on the industry to ensure 

that its principle of ‘public good’ research 

programmes and its commitment to food safety and 

quality issues are clearly communicated and debated, 

and delivered on. 

The priority for the Agriculture and Food sector is to 

build a knowledge economy in agri-food with the 

objective of providing a scientific foundation and 

support for a sustainable, competitive, market 

oriented and innovative agriculture, food and forestry 

sector. 

Teagasc (The National Agricultural Research 

Authority) has prioritized research into functional 

food that impact positively on obesity and colon 

cancer and this will link to the Alimentary 

Pharmabiotic Centre, in Cork. 

Molecular biology, molecular genetics, gene 

expression and protein identification are core 

research areas in the agricultural sector in Europe 

according to the Bio4Eu report. 

Teagasc believes that bio and nano-technology 

applied to bio-product research will have a critical 

role to play in the development of a knowledgebased 

bio-economy. Potential areas that have been 

identified for application include: animal and plant 

sciences, food innovation and non-food crops such 

as forestry. 

Some experts have predicted that modest 

investments now in several areas of biotechnology 

will lead to foods that are more abundant and 

nutritious, a cleaner environment and non-toxic 

bio-manufacturing. 

Molecular biology, molecular genetics, gene 

expression and protein identification are core 

research areas in the agricultural sector. 

Food Safety: The application of genetic 

technologies in food safety research and the genetic 

dissection of food borne pathogenetic bacteria using 

genomic and proteomic strategies will provide an 

insight into how these organisms cause disease and 

how such problems can be avoided. 

Nutrition and Health: Teagasc has signalled its 

intention to establish a department of Nutraceutical 

research in the conviction that this will create 

significant opportunities for innovative product 

development. Probiotic foods are well known 

examples of functional foods in Europe. 

Biotechnology will also have application with regard 

to food quality and flavour and the selective 

breeding of animals. 

21


Marine 

Environment 

22 

The EU has allocated €1.9 billion under the theme 

‘Food, Agriculture, and Fisheries and Biotechnology’ 

for the duration of FP7. The theme is built around 

sustainable production and management of biological 

resources, Life Sciences, biotechnology and biochemistry 

for sustainable non-food products and 

processes, and “Farm to Fork” (including sea food), 

health and wellbeing. 

Government grants linked with the National 

Development Plan plus EU research grants will provide 

€369 million to be invested in the implementation of 

the Marine strategy 2007-2013. 

Although in the early stage of biotech research and 

development, biotechnology is expected to have a 

significant impact on the marine sector. It has been 

estimated that the market for marine derived 

ingredients, health products and bio-chemical 

processes could generate worldwide around €100 

billion. 

Currently the marine industry supports 22,000 directly 

in the marine sector and a further 22,000 indirectly. In 

2003 the sector was valued at €3 billion. 

Biodiscovery: In Ireland the emphasis of marine biotech 

research will be on biodiscovery with a particular focus 

on the potential of the marine as a source of novel 

bioactive substances with applications in the development 

of naturally based novel drugs and therapies; 

industrial enzymes; genomics and functional foods. 

The three core research programmes that will be 

initiated by the Irish Marine Institute are: 

■ Marine Biotechnology 

■ Marine Biodiscovery 

■ Marine Technology 

These discovery programmes will bring together the 

expertise of An Bord Iascaigh Mhara, Enterprise 

Ireland, Teagasc and the Department of Food and 

Agriculture. 

The environment is at the heart of biotechnology. It 

is of concern to everyone that the environment we 

live in and depend upon is both healthy and 

productive. 

The Environment Protection Agency (EPA) funds 

environmental research to protect and manage 

Ireland’s environment, and to anticipate and respond 

to issues arising from EU legislation and international 

agreements, such as such as the Kyoto Protocol. 

Under the Science technology, Research and 

Innovation for the Environment Programme (2007 

–2013) the EPA has been allocated €32 million to 

develop systems and technologies that reduce the 

environmental impact of the industrial and service 

sector. 

The EPA provides support to environment 

policy using four modalities: 

1. Development of an Environmental 

Research Centre in close cooperation 

with the Higher Education Institutes 

(HEIs) to build capacity in environmental 

data management in support of national 

planning. 

2. Research on priority environmental issues 

such as air, water, biodiversity 

3. Large-scale projects with the objective of 

guiding sustainable development in 

agriculture and transport 

4. Working with SMEs in the area of 

cleaner production. 

19 Source: European Commission for Environment and Nature: 

Biodiversity 

20 Source: European Commission for Environment and Nature


Human activity has caused between 50 and 1,000 times more extinctions in the 

last 100 years than would have happened due to natural processes . 

19 

Biodiversity reflects the number, variety and variability of living organisms, 

including mankind. The world is faced with an unprecedented loss of biodiversity, 

which threatens to undermine environmental, economic and social goals. 

The framework for worldwide action is the United Nations Convention on 

Biological Diversity of 1992. At the UN World Summit on Sustainable 

Development, at Johannesburg in 2002, governments committed themselves to 

significantly reducing the rate of biodiversity loss by 2010. The European Union 

has been legislating and taking action since the 1970s to safeguard biodiversity, 

and has also taken an active role on the international scene. The EU has also set 

itself the objective of halting the loss of biodiversity on its own territory by 2010 . 

20 

The Story So Far 

Ireland is fully committed, focussed and well on the way to achieving its 

primary goal of becoming a centre for world-class research, a knowledgebased 

economy and a global hub for the biotechnology industry. 

The results achieved so far are impressive. 

23 

The environment and culture for business in Ireland is progressive and is 

characterised by a ‘can do’ attitude. 

Biotechnology has much to offer the world; Ireland has much to offer 

biotechnology.

Section Three SURVEY OF THE BIOTECH INDUSTRY IN IRELAND 

Survey Terms of Reference 

and Methodology 

The focus of the survey concentrated on the 

four internationally recognised and colour 

coded biotechnology industry sectors: Medical; 

Industrial; Agricultural; Marine and two other 

important sectors; Pharming and Bioinformatics. 

RED 

Medical Biotechnology: applied to medical processes such as designing organisms to produce antibiotics 

and the engineering of genetic therapies through genomic manipulation. There are two main 

sub-categories: (1) Pharmaceuticals, and (2) Chemical diagnostics. 

WHITE 

Industry Biotechnology (also known as grey biotechnology): Industry biotechnology including use of 

enzymes as industrial catalysts; chemical synthesis; environmental biomarkers / chemical diagnostics. 

GREEN 

Agriculture Biotechnology. This breaks down into 2 sub-categories: (1) Cultivation of GM crops, and (2) 

Food manufacture using biotechnology. 

BLUE 

Marine Biotechnologies: GM fish; growing crops under the sea; aquatic applications. 

PHARMING 

Refers to genetic engineering to insert genes into host animals or plants. 

BIOINFORMATICS 

Is the interdisciplinary field that addresses biological problems using computational techniques. 

24 

■ 

■ 

The e-mail based survey was conducted by CIRCA Group Europe Ltd, an international consulting 

company, specialising in science, technology and innovation and was launched in October 2007. 

Companies surveyed were those whose activities were consistent with the OECD definition of 

biotechnology as: 

“the application of science and technology to living organisms, as well as parts, products or models 

thereof, to alter living or non-living materials for the production of knowledge, goods or materials” 21 . 

■ 

Thirty-eight companies were identified according to this criteria and a 71% response rate was 

achieved.


Summary of Key 

Findings and Trends 

Medical Biotechnology the Dominate Sector 

Figure 2. Prediction / Anticipation of Greatest 

Growth Opportunities in Biotech Sector 

The medical biotechnology sector at 74% is the 

dominate biotech industry and reflects both the 

current and historical scale of investment in Ireland 

by the pharmaceutical sector which accounts for 

45% of all Irish exports and is valued at €42 billion 

(fig. 1). 

Anticipated Greatest Growth Opportunities 

Medical 

71% 

Medical + Agricultural 

7% 

Don’t Know 4% 

Agricultural 7% 

Industrial 11% 

71% of respondents anticipated that the greatest 

growth opportunity in the future is in the medical 

sector with the second highest anticipated growth in 

the industrial sector from its current level of 7% to 

11% (fig. 2). 

Biotechnology Sector 

Figure 1. Overview of Biotech Survey Respondents 

Medical + Agri + 

Pharming 4% 

Non- 

Respondents (11) 

32% 

Biotech Survey 

Partipants (27) 71% 

Non-Respondents 

(11) 32% 

Medical 

74% 

Agricultural 4% 

Industrial 7% 

Industrial + 

Bioinformatics 4% 

25 

No Response 7% 

Survey Sample Size 

Biotechnology Sector 

21 OECD (2005) Biotechnological Statistical Framework, Paris


Summary of Key Findings and Trends 

Type of Biotech Companies 

Financial and Employment Data 

It is noteworthy that 26% of respondents to the 

survey (fig.3) are classified as Irish based Multi- 

Nationals while a further 26% are made up of 

indigenous Irish companies ranging in size from High 

Potential Start-up to medium sized enterprises. This 

certainly indicates that there is robust activity among 

indigenous Irish companies from innovative start-up 

enterprises to fully operational small to medium sized 

companies. 

74% respondents provided annual revenue data; 

70% R&D spend (table 1). The survey data showed 

that the respondent companies directly employ at 

least 4,617 people of which 273 are employed 

directly in research. These companies achieve annual 

revenue of €628.7 million and spend nearly €150 

million on R&D. The average spend per employee on 

R&D is €94.7K 

Figure 3. Overview of Respondents by Company Type 22 

30 

26% 

26% 

Sub Categories 

% of companies 

20 

10 

0 

22.0 

3.7 

Irish Based 

Multi- 

Nationals 

3.7 

7.4 

3.7 

7.4 

3.7 

Indigenous 

Irish 

Companies 

11% 

11.1 

Medium 

Enterprises 

22% 

18.5 

3.7 

Small 

Enterprises 

15% 

7.4 

7.4 

High 

Potential 

Start-Ups 

■ Medium Enterprises 

■ Small Enterprises 

■ HPSU 

■ HPSU/Campus Company 

■ Small Enterprises 

Campus Company 

26 

22 A small enterprise has fewer than 50 employees and has either an annual turnover and/or balance sheet total not exceeding €10 million. An 

enterprise cannot be considered as meeting this definition if 25% or more of the capital or voting rights are directly or indirectly controlled, jointly or 

individually by one or more public bodies. A high potential start up company is based on technological innovation; likely to achieve significant 

growth in 3years (sales of €1.0 million per annum and employment of 10 or more); is export oriented and ideally led by an experienced team, with a 

mixture of technical and commercial competencies. A medium sized enterprise has between 50 and 249 employees and has either an annual 

turnover not exceeding €50m or an annual balance sheet total not exceeding €43 million. An enterprise cannot be considered as meeting this 

definition if 25% or more of the capital or voting rights are directly or indirectly controlled, jointly or individually by one or more public bodies. 

A campus company is a private limited company the establishment of which is facilitated by the University to which it is attached.


Table 1. Financial and Employment Data 

Financial data (2006)* 

Totals 

Annual Revenue €628.7M 74% 

R&D spend €149.4M 70% 

% Companies 

Responding 

Current Sources of Funding in Biotech 

Companies 

The main source of funding for biotech companies is 

the Irish Government (63%) followed by Private 

Venture Capital Funding (44%) with Direct Foreign 

Investment and EU funding each accounting for 22% 

of funds (fig. 4). 

Average R&D spend 

per employee €94.7k 74% 

Employment data 

Employees 4,617 100% 

Employed directly 

in R&D 273 93% 

* Some respondents chose not to disclose information regarding 

company finances (26%) 

Figure 4. Current Sources of Funding in Biotech Companies 

Main Sources of Funding 

Number of Sources of Funding 

Irish Government 

63% 

3 Sources 

19% 

Private Venture 

Capital Funding 

44% 

2 Sources 

36% 

Specified 

‘Other Source’ 

15% 

Non-Funded 

4% 

Direct Foreign 

Investment 

22% 

1 Source 

22% 

No Response 

4% 

27 

EU funding 

22% 

0.0 25.0 50.0 75.0 

% of companies


Summary of Key Findings and Trends 

Future Sources of Funding 

Partnerships 

When respondents were asked to identify future 

sources of funding this picture changed significantly 

to the following: Irish Government 44% followed by 

Foreign Direct Investment 41% - almost twice the 

current level: Private Venture Capital (41%) - almost 

twice the current level – and EU funding 37% 

(fig. 5). 

67% of respondents have partnerships and of these 

78% are seeking additional partnerships. 33% of 

respondents do not have partnerships and of these 

44% are seeking partnerships (fig 6). 

Figure 5. Future Sources of Funding 

Irish Government 

44% 

Sources of Funding 

Direct Foreign Investment 

Private Venture Capital Funding 

EU funding 

37% 

41% 

41% 

0 25 50 75 


Figure 6. Biotech Companies and International/other Partnerships 

■ % of companies in each category seeking partners 

100% 

28 


75% 

50% 

67% 

33% 

25% 

(78%) 

0 

Have 

Partnerships 

(44%) 

No 

Partnerships


Biotech Companies Anticipation of 

Future Growth 

Figure 7. Biotech Companies’ Anticipation of Future Growth 

Biotech companies are looking to the future (next 

five years) with great confidence anticipating growth 

in Investment; Biotechnology R&D; Manufacturing 

and Numbers of employees (fig.7). 

Benefits that Support Investment 

% of companies predicting growth 

100% 

75% 

50% 

25% 

(96%) (96%) 

(78%) (78%) 

Respondents were asked to identify the top five 

benefits that support investment decision-making. In 

order of priority the following five were identified: 

Educated and skilled workforce; Taxation; Positive 

R&D environment; Strong and integrated 

government support systems for industry and a 

track record of good commercial ideas (fig.8). 

0 

Growth in 

Investment 

Growth in 

Biotechnology 

R&D 

Growth in 

Manufacturing 

Areas of Future Growth (5Years) 

Growth in 

Numbers of 

employees 

Figure 8. Top 5 Benefits that Support Investment 

% of companies rating benefit important 

100% 

75% 

50% 

25% 

0 

(82%) 

Education 

and skilled 

workforce 

(74%) (70%) 

Taxation 

Positive R&D 

environment 

Areas of Future Growth (5Years) 

(44%) 

Strong and 

integrated 

government 

support 

systems for 

industry 

(41%) 

Track record 

of good 

commercial 

ideas 

Table 2. Other Factors Identified 

that Positively Influence 

Investment in Ireland 

■ Access to overseas markets 

■ Strong track record in Foreign 

Direct Investment 

■ Strong economy 

■ Strong Management Culture 

■ Regulatory environment 

■ Access to professional advisory 

services 

29

Appendices 

Appendix 1: 

OECD List-based Definition 

of Biotechnology 

Techniques 

Biotechnology has been defined by the OECD as: “The application of science and technology to 

living organisms, as well as parts, products or models thereof, to alter living or non-living 

materials for the production of knowledge, goods or materials.” 

1. DNA/RNA: Genomics, pharmacogenomics, gene probes, genetic engineering, DNA/RNA 

sequencing/synthesis/amplification, gene expression profiling, and use of antisense technology. 

2. Proteins and other molecules: Sequencing/synthesis/engineering of proteins and peptides 

(including large molecule hormones); improved delivery methods for large molecule drugs; 

proteomics, protein isolation and purification, signalling, identification of cell receptors. 

3. Cell and tissue culture and engineering: Cell/tissue culture, tissue engineering (including tissue 

scaffolds and biomedical engineering), cellular fusion, vaccine/immune stimulants, embryo 

manipulation. 

4. Process biotechnology techniques: Fermentation using bioreactors, bioprocessing, bioleaching, 

biopulping, biobleaching, biodesulphurisation, bioremediation, biofiltration and phytoremediation. 

5. Gene and RNA vectors: Gene therapy, viral vectors. 

30 

6. Bioinformatics: Construction of databases on genomes, protein sequences; modelling complex 

biological processes, including systems biology. 

7. Nanobiotechnology: Applies the tools and processes of nano/microfabrication to build devices for 

studying biosystems and applications in drug delivery, diagnostics etc.


Appendix 2: 

IBIA List of Members 

4th Level Ventures 

Analytical Drug and Data (ADD) Ltd 

BASF Plant Science GmbH 

Bioscientific Healthcare Ltd 

Biotrin Holdings Ltd 

BioUETIKON 

CIRCA 

Conway Institute of Biomolecular & 

Cruickshank & Co 

Curran Partners Inc 

Delta Partners 

Dublin Molecular Medicine Centre 

Elan Corporation Plc 

Enterprise Ireland Biotechnology 

Fusion Antibodies 

Gas Sensor Solutions 

GeneMedix Plc 

Genzyme Ireland 

Growcorp 

IDA Ireland 

IdentiGEN Ltd 

KPMG 

Luxcel BioSciences Ltd 

Mason Hayes & Curran 

Matheson Ormsby Prentice 

Megazyme International Ireland Ltd 

Merrion Pharmaceuticals Ireland Limited 

Monsanto Ireland Limited 

Murgitroyd & Company 

National Centre for Sensor Research 

NIBRT 

Opsona Therapeutics 

Pharmaplaz Ltd 

Pfizer 

Royal College of Surgeons 

Schering-Plough Brinny Company 

Seroba Bioventures 

Stryker Orthopaedics 

ThromboGenics Ltd 

Triskel Therapeutics 

Wyeth Medica Ireland 

31

32 

The Irish BioIndustry Association

Irish Bioindustry Association 

Confederation House 

84-86 Lower Baggot Street Dublin 2. 

Tel: 01 6051584 

Fax: 01 5381624

Growing the Irish BioIndustry - Irish Business and employers ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?