Ireland is at an important juncture with a general election under way. Following the election, a new programme for government will be negotiated, which will define the priorities for the five years ahead. Central to this programme, I am sure, will be the aim for Ireland to be a good place to invest in and do business.
My own healthcare company, Novo Nordisk, recognises the attractiveness of Ireland today. Globally, we are in a period of unprecedented growth and we expect Ireland to play an increasingly important role in the production of our medicines. We have served Irish patients for decades, and we are pleased to have recently welcomed 400 new manufacturing colleagues in Athlone.
Our broader industry, pharmaceuticals, is also one of Ireland’s strongest sectors, employing thousands and accounting for a huge proportion of Ireland’s exports.
The opportunity to build on these foundations, for Ireland to be one of the best places in the world for companies to invest in and grow, should be at the centre of the next programme for government.
Nurturing Ireland’s future competitiveness will depend on policies at both national and EU levels.
I see increasing uncertainty among my peers about whether Ireland is really committed to making medicines its future
— Novo Nordisk chief executive Lars Fruergaard Jørgensen
Former Italian prime minister Mario Draghi recently warned of a potential “slow agony” of declining competitiveness across Europe – and our sector is not immune. Over the last 20 years, Europe has lost a quarter of its share of global research and development investment to other, more ambitious regions such as the US and China. Clinical trial activity for advanced therapies is twice as high in the US as in Europe, and three times higher in China.
Europe must close this innovation gap – and Ireland has the credibility (and legacy) to lead Europe’s pursuit of greater competitiveness. Ireland’s success in innovation, and the pharmaceutical industry in particular, is woven into its modern identity. The next government should seek to build on this present success, in its national and EU priorities, to secure the future of the pharmaceutical industry in Ireland and keep inward investment flowing.
However, the Irish Government has recently hesitated to declare its support for the sort of ambitious pharmaceutical legislation that would deliver for the future Irish economy – and for Irish patients. This surprises me – and not only me. I currently serve as president of EFPIA, the European association for the innovative pharmaceutical industry, and I see increasing uncertainty among my peers about whether Ireland is really committed to making medicines its future.
Given the long-term nature of our sector, we must be confident when we make investment decisions. We need certainty that Ireland and Europe will be the right place to develop, make and use the medicines of tomorrow. Therefore, the next programme for government should prioritise and focus on the negotiations relating to the EU general pharmaceutical legislation, which provides the regulatory framework for medicines in Europe.
This revision is a once-in-a-generation opportunity to provide Europe and Ireland with the kind of future-fit regulatory system needed to ensure Europe will be a leading region to develop and launch new ground-breaking medicines. It also defines incentives, such as Regulatory Data Protection, a form of exclusivity that stimulates research and directly affects which potential medicines companies invest in developing and placing on the market.
The European Commission has proposed reducing this period, from eight years today to six years in the future. It is vital the Irish government now supports maintaining or enhancing the existing eight-year baseline period of Regulatory Data Protection to protect healthcare innovation in Ireland. The EU’s total regulatory exclusivity for biological medicines is already shorter than in the US. These proposals would only widen the gap we see between incentives for innovation in the US and the EU.
Ireland can secure a thriving future and build on its prosperity by leading in the EU on this general pharmaceutical legislation – to be addressed by health ministers at the EU EPSCO Council meeting on December 3rd – while also seeking to be a leader on access to medicines at home.
The Irish Pharmaceutical Healthcare Association (Ipha) notes in its election manifesto that “Ireland continues to lag behind similar European countries when it comes to availability and access to new medicines”. Resolving this situation will be complex, but is achievable with political will. Ipha and the innovative pharmaceutical sector are ready to engage in the dialogue needed to ensure Irish citizens receive life-enhancing treatments in Ireland into the future.
In a turbulent world, and with many competing priorities, the next government will face difficult decisions. But pursuing a more ambitious agenda for life sciences and innovation in Ireland and Europe will sustain health and economic performance for the decades ahead. Indeed, it is crucial that a life science strategy for Ireland is included as a commitment in the next programme for government, with a strong European dimension. Here, the next Irish government has a rare thing in politics: an easy choice for a brighter future.
Lars Fruergaard Jørgensen is chief executive of Novo Nordisk
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