Irish Pharmaceutical Healthcare Association (IPHA)

Annual Meeting

Barry O’Leary

November 25th 2010

Current Impact of FDI

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KEY FDI IMPACTS ON THE IRISH ECONOMY

- €110 BN Exports- 240,000 Jobs in Total- 55% of Corporation Tax- €19 BN Expenditure- €7 BN Payroll- 73% of Business RD&I expenditure

WORLD LEADERS CHOOSE IRELAND

- 8 of the top 10 in ICT - 8 of the top 10 in Pharmaceuticals - 15 of the top 25 in Medical Devices - More than 50% of the world’s leading Financial Services firms

• Global Services• High-end Manufacturing• Research, Development & Innovation

Business Model Focus

Sectors• Life Sciences - Pharma/Biopharma &

- Medical Devices• Information & Communications Technology • Financial Services

• Content Industry, Consumer & Business Services• Diversified Industries and Engineering• CleanTech

IDA Focus

FDI 2010 – Recent WinsExisting Clients

FDI Recent Wins – New Clients

Ireland – major Life Sciences Hub

Biopharma Med Tech

Healthcare Services

• 8 0f the top 10 Pharma• 8 of top 10 and 15 of top 25

Medical Technologies • 44,000 jobs• Exports €51 Bn p.a.• Numerous sub-suppiier and

service providers

Recent Lifesciences FDI Investments

Investing €220m in a new fill finish vaccines facility (170 jobs) Carlow. EMEA Service Centre in Dublin (150 Jobs).

EMEA Shared Services for 100 people, Cork.Biologics, €400m investment.

Investing over €160m in R&D in Galway, Cork and Clonmel

Global manufacturing and development, 204 people, Dundalk

100 person manufacturing expansion in Co. Galway

250 person manufacturing expansion in Ballina

€30m investment in bio-analytical / chemistry services, 250 Jobs in Athlone

Expansion of €130m and 170 new jobs

European Shared Services Centre in Cork  - 30 jobs

European Services Centre in Dublin, creating more than 200 job.

€50 million new manufacturing investment, creating 250 jobs in Clare

Global Lifesciences Industry Drivers/Challenges

Pharma• Patent cliff – increased

generics• Pipeline Challenge• Restructuring to

accommodate new reality – M&A, cost reduction

• Increasing Regulatory hurdles and costs

• US Healthcare reform – biosimilars pathway

• Biologics• Rise of Asia

• Ageing population• Healthcare reform tax• 510K regulatory pathway

changes USA• Convergence – clear

coupling of devices and tech.

• Asian market growing strongly

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Ageing population20%+ of population will be over 65 in developed markets by 2025

Emerging markets

Pharma market expected to double by 2015

Unmet needs

Oncology, immunology, antiviral HIV, stroke, Alzheimer's, obesity, thrombosis, HCV

New technologies

e.g., Predictive technologies, such as biomarkers, in silico models

Increasing demand

Demand for healthcare to continue to grow

Broaderoffer

1. Source : IMS Market prognosis

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Evolution of Pharma Bio

• Single Platform Technology• API manufacturing • Q&A labs

• Sophisticated manufacturing

• Liquids• Tabletting• Creams• Patches• Molecular

diagnostics

• Reference Global Sites

• Biopharma• Shared

services - Supply chain, Regulatory, Finance

• Commodity medicines

• Self-Dx, Self Treat

• Nutraceuticals• Convergent

technologies• Connected

Health• Personalised

Medicine• Combination

medical products

• Medical Services

1980s 1990s 2000s 2020

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Horizon 2020 - Ongoing Evolution of Pharma Bio

2010-2015- Capturing and Delivering marketplace opportunites• Integrating disease with lifestyle management • Leveraging expertise in nutraceuticals, point of care assays • Advancing molecular diagnostics and targetted therapies • Utilising genetic testing & biomarkers in advanced clinical trials• Developing convergent medical products• Rise of bioinfomatics, population health strategies

Now - Building and Developing the sector• Winning new biopharma investments• Leveraging NiBRT to advance Biopharma Industry• Enhancing Ireland’s small molecule Value Proposition• Support vaccine development, generic reformulation, improved drug delivery • Expanding mandates of top 30 companies “start earlier-finish later”• Supporting new starts in packaging, tabletting, labelling, supply chain• Expanding footprints into shared services, commercialisation, clinical trials

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Horizon 2020 - Ongoing Evolution of Pharma Bio

2020 Foresight• Convergent medical management – drug & dynamic device• Regenerative Health platforms in ageing, organ, joint replacement• Connected Health platforms integrating e-health • Cancer vaccines, targeted personal therapies• Advancing silver care, aged care, focus on mental wellness • Tailored health insurance per decade of life• Development of “polypill” • Integrated digital medical record and decision support• Remote monitoring and treatment at home• New bioactive materials and molecules from marine ecosystem

Ireland : A Proven Location for

Lifesciences Service Activities

Initiatives to protect and grow Industry

• Transformation – – Technology uplift, – Skills uplift– Process development– Product Development– Energy Efficiency– Operational excellence

• Strategic Sites and CMO • NIBRT for Bio• National Commercialisation centre for medical devices • National competence centre for small molecule production• International healthcare services centre• Healthcare Innovation hub with HSE• Research and Development Agenda

• TV Ads

• Live TV Interviews

• Online Media

• Print Media

• Airport Posters

• Press Interviews

• Web Optimisation

Integrated Communications Campaign

Professor Luke O’Neill – Trinity College Dublin

IDA TV Ad – 30 Secs

Thank You