Irish Pharmaceutical Healthcare Association (IPHA) Annual Meeting Barry O’Leary November 25 th 2010

Current Impact of FDI gh 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 Wins Existing Clients

FDI Recent Wins – New Clients

Ireland – major Life Sciences Hub BiopharmaMed 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

9 Ageing population 20%+ 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 Broader offer 1. Source : IMS Market prognosis Copyright © 2010 by The Boston Consulting Group, Inc. All rights reserved.

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 1980s1990s2000s 2020

11 Horizon Ongoing Evolution of Pharma Bio 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

12 Horizon 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

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Professor Luke O’Neill – Trinity College Dublin

IDA TV Ad – 30 Secs

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