‘Ireland, a bridgehead for companies entering the EU mkt'

Rory Mullen, Global Head of Biopharma and Food at Investment Promotion & Development Agency Ireland

Has the lowest corporate tax rate in the world, at 15/12.5% for large/small and medium companies

Pfizer, BMS, etc. are expanding production bases... own abundant specialized labor force

Wuxi and Takeda also enter Ireland...SK Biotech also recently acquired a plant

Rory Mullen, Global Head of Biopharma and Food at Investment Promotion & Development Agency Ireland

"Ireland has the best condition for multinational pharmaceutical and biotech companies to invest and operate in as a bridgehead to the European market." Rory Mullen, Global Head of Biopharma and Food at Investment Promotion & Development Agency Ireland explained so during his recent visit to South Korea.

 

Mr.

 

Mullen visited Korea to discuss European expansion strategies with the country's health authorities and pharma and bio companies.

 

He cited Ireland's abundant R&D talent, low corporate taxes, business-friendly state policies, and EU-GMP certification as some of the benefits.

 

Global Head Mullen said, “Ireland's pharma and biotech industry is 95% foreign-owned, with academy-affiliated biotechs and indigenous pharmaceutical companies such as Chanelle Pharma and Alma.” Ireland is a pharma-bio powerhouse with combined domestic and foreign healthcare sales of KRW 110 trillion.

 

Currently, more than 20 global Big Pharma companies, including Pfizer, Lilly, BMS, and Gilead, have established production bases and research centers in Ireland, which serve as a base for their entry into the European market.

 

Pfizer and BMS were the first multinational pharmaceutical companies to set foot in Ireland more than 60 years ago.

 

Today, Pfizer has 5 smart factories in the country, including a small molecule API product manufacturing facility and a biologic agent manufacturing facility.

 

BMS has a biologics manufacturing facility in Ireland and recently announced plans to build an additional large-scale aseptic production plant.

 

SK Biotech, a Korean company, acquired BMS's small molecule API manufacturing facility in Ireland and is currently executing a plan for its successful European expansion.

 

Other Asia-Pacific pharma and biotech companies with a presence in Ireland include China's Wuxi and Japan's Takeda and Astellas.

 

Wuxi is considered a successful example of an Ireland-based company that crossed the Atlantic and entered the U.S., the world's No.

 

1 healthcare market.

 

Japanese pharmaceutical companies are also planning new roadmaps for establishing ADC manufacturing sites in Ireland, to ultimately capture the European market.

 

One of the reasons Ireland is so highly regarded as a strategic location by 'Big Pharmas' is because of the country's pro-business policies and corporate tax breaks.

 

Mr.

 

Mullen said, "Ireland has one of the lowest corporate tax rates in the world, at 15% for large corporations (including multinational companies) and 12.5% for small and medium-sized enterprises.

 

In addition, we have a tax refund system to encourage R&D activities, which allows companies to maximize profit value." Korea's corporate tax rate is 24%, while the OECD average is around 21%, meaning that if a Korean company were to relocate its production and R&D headquarters to Ireland, the company may benefit from a tax break of up to 10%.

 

Mr.

 

Mullen added, “Korea has been producing impressive results in the pharma and biotech industry in recent years.

 

Samsung Biologics has already grown to become a global CDMO on par with Lonza.

 

Celltrion and SK Bioscience are also on their way to becoming K-bio leaders." Meanwhile, Ireland, an island nation neighboring the United Kingdom, is a prime example of a former shepherding nation turned healthcare powerhouse.

 

The country fostered the pharma-bio sector as its new growth engine more than 50 years ago and has since become a bridgehead and outpost for global Big Pharmas seeking to enter Europe.

 

With a population of 5.5 million, it has half the population of Seoul, but as an EU-OECD-UN member, it has one of the highest quality of life in the world.

 

With a nominal GDP per capita of about USD 100,000 (about KRW 120 million), the country’s GDP is more than 3 times higher than that of Korea's.

 

The country also has a Human Development Index that ranks second in the world and is highly regarded as a hidden developed country.