Ireland’s pharma sector bags the Brexit benefit as trade surplus soars

By Chris Wheal

March 20, 2024

Medical and pharmaceutical exports represented 48% of all Irish exports

Ireland’s pharma sector is booming. The latest export numbers from the Central Statistics Office published on Friday showed medical and pharmaceutical products accounted for almost half of all Ireland’s growing exports. The sector accounts for more than 80% of the country’s trade surplus.

Exports by the medical and pharmaceutical sector grew by €2.9bn (48%) to almost €9bn in January 2024 compared with January 2023. This represented 48% of all Irish exports. Imports of medical and pharma products over the same period fell from €1,039m to €988m, resulting in pharma’s trade surplus for January rising from €5bn to €8bn.

In the economy as a whole, total unadjusted goods exports were €18.9bn in January 2024, a rise of €3.4bn compared with January 2023. Total imports were down to €9.1bn, €2.4bn lower than the figure in January last year. That means Pharma was responsible for €8bn of Ireland’s total €9.8bn trade surplus in January.

Attractive global market

Eimear O’Leary, director of communications and advocacy at the Irish Pharmaceutical and Healthcare Association (IPHA) told Pharma News that Ireland’s pharma sector has long punched above its weight and is now capitalising on Britain’s Brexit decision.

“Despite Ireland being one of the smallest countries in the EU, all of the world’s top 10 pharmaceutical companies have operations here,” she told Pharma News. 

“Since Brexit, Ireland is now the only English-speaking country in the EU, which makes it especially attractive to a global market. Geographically, Ireland has proximity and ease of movement to other EU countries and Britain, with good access to the US. Other factors include our open, single market.”

Not so Great Britain

Trade with Great Britain (excluding Northern Ireland) was a stunner. The medical and pharmaceutical classification makes up the bulk of the larger chemical and related products category. This saw exports to the UK rise from €513m in January 2023 to €630m in January 2024. Imports from Great Britain in the same period fell from €405m to €179m.

Ireland’s industrial development agency IDA Ireland says Ireland is the world’s third largest exporter of pharmaceuticals, according to the UN International Trade Statistics database. It reckons the country has more than €116bn in annual pharma exports and is the third largest exporter of pharmaceuticals globally.

Predictable and stable

O’Leary said: “For many decades there has been, and continues to be, real investment in Ireland in pharmaceutical and biopharmaceutical manufacturing and business services from across the US, Europe (EU and non-EU) and Asia. The industry’s local footprint is significant, with 45,000 direct jobs at sites across the country making medicines for the global market.”

She added: “Ireland is regarded as an attractive and productive location for pharmaceutical companies due to a multifaceted package of measures, which include a highly educated and flexible workforce, ease of access to both the US and the EU, and an ecosystem of collaborative research. 

“Further drivers in Ireland’s success are our predictability and stability as a country, and the highly regulated environment within which the industry operates.”

UK situation

In the UK, the Association of the British Pharmaceutical Industry (ABPI) reports figures from a year ago showing the UK exported £25.4bn (€29.7bn), but imported £30.8bn (€36.1bn), giving a trade deficit of £5.4bn (€6.3bn). It fell from fourth place in the world to 98^th in terms of its trade balance in pharma.

Approached by Pharma News, the ABPI said it would update the page with new figures showing exports for 2023 of £26.1bn (€30.6bn), just nudging above the imports of £25.4bn (€29.7bn).

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