An Introduction to the Biotechnology Sector in Ireland - IDA Ireland

An Introduction to theBiotechnology Sectorin Ireland

www.biotechnologyireland.comInvest Innovate InspireA unique feature of the Irish business environment is the productive collaboration between industry, academiaand Government agencies. These stakeholders work together as a national team to consolidate Ireland’sposition as a knowledge-based economy and as a prime location for Research, Development and Innovation(RD&I). Ireland continues to be a vanguard of industrial development, receiving top global recognition fromorganizations including The Heritage Foundation, the Economist Intelligence Unit, Harvard Business Online,and AT Kearney.The life sciences sector in Ireland continues to thrive, bothwith indigenous and overseas companies. Ireland is now ina leadership position in many key business segments. Mostof the world’s leading life science companies have significantoperations in Ireland along with a thriving and growingdomestic sector. This concentration of activity and expertisein Ireland is supported by a high level of governmentfunding through Science Foundation Ireland, IDA Irelandand Enterprise Ireland.Today, Ireland is a global competitor for Research, Developmentand Innovation investment from multinationalcompanies and leading research institutions. This is aresult of a concerted effort through government policyto build a substantial foundation of world-class scienceand technology in Ireland’s academic institutions and,in particular, the encouragement of strong business andacademic collaborations.Over the last number of years, Ireland has secured over$5 billion of investment from global companies such asGenzyme, Centocor, Merck, Wyeth and Pfizer. Irish companiessuch as Elan, Trinity Biotech, Merrion and Opsona, toname a few, are at the forefront of innovation in Ireland.1

www.biotechnologyireland.comDeveloping the ClusterIreland has grown a globally significant Life Sciences industry, with over 170 companies employing 40,000people and generating $46 billion in exports each year. This represents 42% of exports from Ireland.Ireland has recently secured in excess of $5 billion ofinvestment in the life sciences sector from companiessuch as Genzyme, Allergan, Gilead, Bristol–MyersSquibb, Pfizer and Schering-Plough. Merck & Co Inc theseventh largest pharmaceutical company in the worldcommenced construction of a $300 million strategicvaccine facility in Ireland. Pfizer is investing $260million building a biopharmaceutical development andmanufacturing facility.The satisfaction of industry leaders with their decision toestablish substantial operations in Ireland has resultedin several examples of multiple investments. Highlightsof these include Abbott and Johnson & Johnson withsix operations and Wyeth with four. In addition, Pfizeroperates five manufacturing sites along with a corporatebank and a European financial shared services centerin Ireland.Venture Capital FundingVenture Capital funding in Ireland is at its highest levelsince 2002 despite the credit crunch. Irish technologyfirms fundraising in 2008 was up 7.5% on the previousyear and up 26% on 2006. Irish Venture Capital Fundshad some $600m available for investment in 2008.2008 showed a bounce in the funding going into seedand early stage companies which reflected new VCFunds coming on stream and Irish VCs continued tosuccessfully syndicate with international players many ofthe later stage deals.In April 2008 Venture Capital Company ‘FountainHealthcare Partners’ was launched and announced thefirst close of its Fountain Healthcare Partners I Fundwhich has $75 ($117) million of committed capital.January 2009 saw the launch of Seroba Kernel LifeSciences Fund II Limited Partnership, with $75 million ofcommitments. This new entity creates one of the largestdedicated life science venture capital firms in Ireland andthe UK. The closing of the new fund brings the total lifescience funds currently under management by this teamto over $200 million.Venture capital is an essential element of the ecosystemfor Irish indigenous industry, providing riskcapital for companies that would have difficulty raisingcapital through traditional sources of finance. Underthe 2007-2012 Seed and Venture Capital Programme,the Government through Enterprise Ireland is investing$175m, which will leverage an estimated investment of$1bn in start-up, early stage and development stagebusinesses.2

InvestOur commitment to Science, Technology &Innovation has led to the creation of world-classcenters of expertise and excellence and a clusterof leading biopharma, pharma and medicaltechnology companies.3

InnovateWe have an international reputation forinnovative high technology products & services.Our reputation is based upon knowledge,flexibility and the ability to deliver.4

www.biotechnologyireland.comResearch, Developmentand Innovation (RD&I)The Government of Ireland’s Strategy for Science, Technology and Innovation (2006-2013) provides for aninvestment of $6 billion which will:-➜ Double the number of PhD graduates➜ Promote greater commercialization of ideas andknow-how of universities and public researchinstitutions➜ Increase participation in the fields of science➜ Increase translational research activity➜ Allocate significant resources to supportingenterprise R&DIreland is an exciting place to carry out research inthe areas of bioscience and bioengineering – across abroad range of disciplines that underpin the study ofgene expression, protein synthesis and characterisation,protein signaling, neuroscience, immunology, DNA,RNA, genomics, chemistry, biosensors, drug delivery andbioremediation. Research in these disciplines will criticallyinfluence healthcare, diagnostics, pharmaceuticals,environmental management, agriculture, marinescience, medical devices, consumer goods and food anddrinks businesses.SFI currently funds over 550 principal investigator-ledresearch groups, with almost half working in the Lifesciences and related fields. The commitments to LifeSciences research activities funded by SFI have reachedin excess of $400 million and indirectly employ wellin excess of 1,000 scientific researchers within Irelandin areas as diverse as agriculture and food, sensors/devices, molecular and cell biology, microbiology,nanotechnology and bioinformatics/systems biology.An integral part of SFI investment is to invest inresearch of strategic importance to Ireland. The SFIStrategic Research Clusters (SRCs) and Centres forScience Engineering and Technology (CSETs) encouragecollaboration with industry around strategic areas ofresearch, over 125 distinct companies are now engagedwith these research groups. A large number of the SRCsexist within the life sciences space, including the SolidState Pharmaceuticals Cluster (SSPC) in Limerick, theNetwork of Excellence in Functional Biomaterials (NFB)and Glycoscience Research Clusters in Galway and theIrish Drug Delivery Network and BioNanoInteract Clustersat University College Dublin. Between them, theseclusters alone have over 30 industry partnerships witha diverse range of international companies, includingMedtronic, Boston Scientific, Pfizer and GlaxoSmithKline.SFI most significant awards are CSETs. To-date SFI hassupported nine CSETs – three in the Lifesciences and sixin the ICT sector.Examples of SFI Centres for Science, Engineering andTechnology (CSETs) in the Lifescience sector are;5

www.biotechnologyireland.comResearch, Development and Innovation (continued)Alimentary Pharmabiotic Centre (APC) at UniversityCollege Cork - www.ucc.ie/research/apcThe goals of the APC include investigating the means by whichintestinal bacteria influence health and disease; developingnew therapies for debilitating gastrointestinal diseases (such asgastroenteritis, C. difficile, ulcerative colitis and Crohn’s disease);exploring commercial opportunities in both the pharma andfunctional food sector; and positioning Ireland at the forefront ofthis exciting new area.Collaborating partners: Alimentary Health, GlaxoSmithKline andTeagasc (the Irish agriculture and food development authority).Biomedical Diagnostics Institute (BDI),Dublin City University - www.bdi.ieBDI is carrying out cutting-edge research to develop the nextgenerationof biomedical devices that will directly affect the qualityof people’s lives worldwide over the next decades. The diagnosticdevices and sensors will aim to detect minute concentrations ofdisease related molecules in biological samples like blood, salivaand breath.Collaborating Partners: Becton Dickinson and Co, Analog Devices Inc,Hospira Inc, Inverness Medical Innovations Inc, Enfer TechnologiesLtd, Åmic AB (now part of J&J Ortho Clinical Diagnostics)Regenerative Medicine Institute (REMEDI),National University of Ireland, Galway - www.remedi.ieREMEDI is a world class biomedical research centre focusing on genetherapy and stem cell research. In state of the art facilities, researcherswork together to combine the technologies of gene therapy andadult stem cell therapy with the aim of regeneration and repair oftissues. The unique feature of the research carried out at REMEDI isthe novel integration of both therapies in a complementary researchand development programme.Commercialization and Campus InnovationEnterprise Ireland, the Irish development agency responsible forsupporting indigenous industry has made significant investmentsin initiatives and research projects to strategically commercializebiotechnology research from colleges and institutes in Ireland. ItsBiotechnology Group supports the commercialization of appliedbioresearch into technologies that will form the basis of new startup companies or licensed to established companies. Recent spinoutsfrom such research include:-Opsona is a drug development company, focused on noveltherapeutic and preventative approaches to autoimmune andinflammatory diseases. The company was founded in 2004 withthree of Trinity College Dublin’s respected Immunologists. Thecompany is specifically interested in drugs which modulate theimmune system and its signalling, specifically Toll-Like Receptors(TLR). The company has signed some significant partnering andcollaborative deals, such as with Wyeth (USA). Berand from UniversityCollege Dublin focuses on the evaluation of promising drugsdirected against neurodegenerative conditions, such as Alzheimer’sdisease and schizophrenia.Incubation CentersIncubation Centers enable those with cutting edge ideas to testout the market potential of those ideas in a supportive businessorientatedenvironment. Experience has shown that up to 20% ofhigh potential companies in Ireland have their origins on campus,and more than 550 Irish companies to date have come out of theuniversities.An Enterprise Ireland supported bio-incubation facility has beenestablished at St. James’s Hospital, Dublin. Designed to facilitatethe translation of science and research into products that are usedto diagnose and treat disease, the bio-incubator is one of six thathave recently come on stream providing professional research andcommercialization services, as well as access to financial, legal andmarketing advice.Collaborating Partners: Medtronic and Smith & Nephew.6

www.biotechnologyireland.comBioPharma Campus, GalwayAnother interesting development was the pre-approval for a fullypermitted, 67 acre BioPharma campus in Galway on the westcoast of Ireland. The site includes planning permission for waterpurification buildings, waste water treatment facilities, a laboratory,fermentation, purification and fill finish buildings, along withall other ingredients necessary to implement a fully operationalBioPharma campus. The flexibility of the planning permission allowsfor any combination of buildings to be erected and significantlyremoves risks to a project. With a high quality manufacturingenvironment, supported by a university city, and the ability to availof low corporation tax, this option will likely prove enticing for anynew strategic business investment.Competence CentersCompetence Centers, a joint initiative from Enterprise Ireland andIDA Ireland, are collaborative entities established and led by industrythat are resourced by highly qualified researchers associatedwith research institutions who will undertake market focusedstrategic research and development for the benefit of industry.This ‘competence center’ model facilitates groups of companies,operating in the same business area, coming together to definea common research interest that could positively impacton the development of their business.Tax and intellectual propertyIreland’s intellectual property laws provide companies withincentives to innovate. The Irish tax system offers huge supportto turn brilliant ideas into the finished article. A highly competitivecorporate tax rate of 12.5% is a major incentive. No tax is paid onearnings from intellectual property where the underlying researchand development work was carried out in the EEA.Ireland has had an R&D Tax Credit scheme since 2004. Its purpose isto encourage both foreign and indigenous companiesto undertake new and/or additional R&Dactivity in Ireland. The R&D tax creditis 25% in addition to a tax deductionat 12.5% for R&D expenditurein Ireland.7

www.biotechnologyireland.comSuccess through PeopleIn Ireland, the importance of the personal touch can rarely be overstated. Human engagement is anational habit, a central part of everyday life. As a result of this high level connectivity, Ireland is aglobal center for science - and innovation-based activities.Developing and maintaining a skilled life sciencesworkforce is a major priority for Ireland. The share ofthe 25-34 year olds completing college education inIreland today is 40%, as compared to an OECD averageof 31%. The International Institute for ManagementDevelopment, Switzerland 2008 yearbook ratesIreland’s education system as one of the best inthe world with Human Development Index, Highereducation achievement, and Funding for technologicaldevelopment listed as infrastructural strengths.Recognizing the need to continually innovate in thisdynamic area, the Government of Ireland establisheda National Bioprocessing Research, Education, Trainingand Service facility (NIBRT). This followed wide consultationin the US and Europe with businesses andacademia in the biotechnology field, where it is acceptedthat bio-pharma globally is restricted by skills shortagesand technical bio-processing challenges. Taking intoaccount the key educational and industrial issuesidentified, it is anticipated that the facility, with a capitalinvestment of more than $80 million, will generate asubstantial workforce with highest levels of best practiceskills across the spectrum of bioprocessing activitiesreadily applicable in a real-time scale-up environment.Additionally, in conjunction with academic institutions,NIBRT will focus on academic/industry collaborativeresearch with an emphasis on advancing knowledgein bioprocessing technologies and techniques and thetechnical problems of scale-up and related issues.Ireland has always had talented scientists, and thislocal talent is now being added to by some of theworld’s leading life sciences researchers. Internationalresearchers have come here, attracted by the ‘buzz’ ofactivity, as well as the funding and the facilities.This is a small, sociable country, with networkingopportunities second to none, and with easy access todecision makers at all levels of government and industry.This means that problems can be resolved quickly, withpeople in authority always ready to listen.Academic researchers, industry and governmentagencies, all in close partnership, are working torealize the ambition of seeing Ireland recognized asan internationally renowned location of excellence inlife sciences research, entrepreneurship and businessdevelopment.8

InspireWe have an appetite for knowledgeand a passion for life9

www.biotechnologyireland.comOur Formula for SuccessIreland provides a world class research landscape, a cluster of biopharma, pharma, and medicaldevice and diagnostic companies, a business friendly environment, a commitment to thedevelopment of the Biotechnology sector and an innovative talent pool. To find out how you canapply this formula to your business, talk to us or visit the website www.biotechnologyireland.com.Enterprise IrelandEnterprise Ireland is responsible for the developmentand promotion of the indigenous business sector. Itsmission is to accelerate the development of world classIrish companies to achieve strong positions in globalmarkets resulting in increased national and regionalprosperity. It facilitates collaborative links betweenenterprise and the research community that lead to thepractical application of research in business, yieldingbenefits to both groups.Science Foundation Ireland (SFI)Science Foundation Ireland (SFI) is the nationalfoundation for excellence in scientific research. SFI isinvesting in academic investigators and research teams,who are most likely to generate new knowledge,leading edge technologies and competitive enterprisesin the fields of science and engineering which underpinthe broad areas of Biotechnology; Information andCommunication Technology and sustainable energyand energy efficient technologies.IDA IrelandIDA Ireland is the Irish Government’s inward investmentpromotion agency responsible for the attraction anddevelopment of foreign direct investment in Ireland. Inpartnership with a wide array of national stakeholders,IDA continues to position Ireland as the innovation ledand knowledge based economy of choice for globalinvestment.The Irish Bioindustry Association (IBIA)The Irish Bioindustry Association (IBIA) is the leadingrepresentative body for the biotechnology industryin Ireland. It is affiliated to the Irish Business andEmployers Confederation (IBEC). The main aim of theIBIA is to promote, support and encourage the furtherdevelopment of the biotech sector in Ireland.10

IrelandWe are a politically stable, open economy,which is flexible and fast moving. We can quicklyadapt to meet the demands of a fast movinglife sciences sector.11

www.biotechnologyireland.comHead Office The Plaza, East Point Business Park, Dublin 3, Ireland. Tel: +353 1 727 2000New York Ireland House, 345 Park Avenue, 17th Floor, New York City,NY 10154-0037, USA. Tel: +1 212 371 3600www.enterprise-ireland.comHead Office Wilton Park House, Wilton Place, Dublin 2, Ireland. Tel: +353 1 603 4000Atlanta Monarch Plaza, Suite 350, 3414 Peachtree Road, Tel: +1 404 816 7096N.E. Atlanta, GA 30326, USA.New York 345 Park Avenue, 17th Floor, New York, NY 10154-0004, USA. Tel: +1 212 750 4300www.idaireland.comHead Office Wilton Park House, Wilton Place, Dublin 2, Ireland Tel: +353 1 607 3200www.sfi.ieIRISH BIOINDUSTRYASSOCIATIONHead Office Confederation House, 84-86 Lower Baggot Street, Dublin 2, Ireland. Tel: +353 1 605 1584www.ibia.ie12

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