InBus_Win09_1-55:InBusiness 1-61 11/12/2009 16:20 Page 52
FEATURE | Life Sciences Report
“THIS YEAR WE SAW A 20 PER CENT
INCREASE IN THE CAO APPLICATIONS FOR
SCIENCE COURSES OVER 2008.”
– Tara Delaney
long-term and could seriously hurt our not compelling. “Such investment is bearing
ambitions to become a ‘smart economy’. The fruit in tangible forms. Ireland is gaining a
quality of the workforce is what will ultimately reputation for world-class research in some
give Ireland an edge over countries where the fields, so let’s not be short-sighted.”
cost of doing business is significantly lower. “If R&D will be particularly important for the
we want to compete with low-cost foreign industry over the next few years due to the
labour we can do so by working harder, looming patent expiration on a number of
smarter, faster, and more creatively. If our best major drugs. This can cause suppliers’ revenues
and brightest leave, so too does the incentive,” to drop ten-fold – a shift experienced first hand
Tara Delaney, Media and Communications
Representative, Pfizer Ireland.
says Prof Davies. by Eli Lilly in August 2001, when their
antidepressant, Prozac, fell off the top-ten
per cent in the UK) has always proved to be a FUTURE OUTLOOK leading products list for the first time since its
major attraction for multinationals. On top of In this respect, the Irish education system is development in 1989. In fact, the news of the
that, we have developed a strong reputation struggling. Every year without fail, our second- impending deadline caused a 30 per cent drop
for producing well-educated graduates – level students fight to achieve marks in science in the value of Lilly’s stock one full year before
particularly in the sciences – which has and mathematics which, by international the patent actually terminated. Pfizer’s rights to
equated to a trained and hungry work-force. standards, are considered below average. This is Lipitor, currently the best selling medicine in the
Beyond that, our geographical position as the snow-balling to create greater problems at third- world, will expire in the next two to three years.
western-most point of Europe makes us the level, where the number of students enrolling in It is thought that the resulting generic
gateway to European market and a natural and graduating from important science courses competition could trigger as much as €10bn in
stepping-stone for the US. is alarmingly low. losses to the company – the equivalent of the
However, a recurring problem for Ireland is “We need to build upon Ireland’s tradition product’s accumulated global revenue in 2006.
the cost of doing business here. Not even our and invest in education and training at all levels. “I would acknowledge that we have been overly
low-tax incentives can hide the price of the Unfortunately, these are easy targets in the dependent on Lipitor, which now accounts for
emerald stamp. According to Paul Duffy, CEO budget,” Davies says. “One possible way around 25 per cent of Pfizer’s annual revenue,” Delaney
of Pfizer in Ireland, the average salary earned in this is to establish partnership with the industry. says. “In the future, no one product will
a multinational company is €45,000, while We can ask these firms to help construct special represent more than 10 per cent of revenue at
wage inflation in Ireland between 2001 and programmes in schools that are aimed at Pfizer. This is a strategically important by-
2008 has been 50 per cent higher than the EU supporting their educational needs.” product of our acquisition of Wyeth.”
average. Costs have been rising in competing Tara Delaney is more optimistic about the On the subject of this $68bn takeover and
countries like India too, but not at the same rate migration patterns of Ireland’s graduates and whether it would result in job losses, Delaney
as in Ireland. While low corporate tax is an feels that the economic climate is changing how was tight-lipped. “Pfizer’s Global Manufacturing
alluring carrot for investors, it can no longer people look at science. “Many of the young (PGM) is currently undertaking an analysis of
eclipse the amount of money involved in setting workers who are going abroad to seek work are the combined company’s global manufacturing
up shop here. “Firms pay more in labour costs just bringing forward travel plans they would network. It will announce its network strategy in
than they pay in taxes,” says Davies. “In thinking have made anyway. They will be back once approximately three to six months. It would be
about their bottom line (and location), that there is an upturn, and they will bring reckless for me speculate on the outcome for
means that they will pay more attention to international experience with them.” Ireland of this analysis.”
labour differentials than tax differentials.” While the recession is hardly a cause for However, no company, including
While increasing the corporate tax rate would celebration, it is starting to have a favourable heavyweights like Pfizer-Wyeth, can simply
almost certainly send a large number of influence on students’ third-level choices. “This brush off multi- dollar hits and given that
companies packing, we cannot necessarily rely year we saw a 20 per cent increase in the mergers invariably result in duplication of
on it to uphold investment. One of the most CAO applications for science courses over positions, there will almost certainly be some
difficult by-products of the recession is 2008.” Despite this, she emphasises the need redundancies. While the life sciences sector is
emigration. While government ministers are, for for increased state investment in education ploughing through the recession, it is not
now, most likely sighing with relief at the news and research, particularly in the Work completely unscathed and may face more
that our graduates are heading overseas rather Placement Scheme and criticised the difficult battles in the next 18 months.
than staying here on the live register, this McCarthy Report’s suggestion that the Fostering innovation is the only way to
development will affect Ireland’s recovery in the evidence for pharma-chemical investment is overcome this hurdle.
52 InBusiness Winter 09
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100