A new strategy for the indigenous biopharma sector launched by Ibec industry body BioPharmaChem Ireland (BPCI), has identified a €1.1 billion equity financing gap facing the Irish industry.
The Together, for Others strategy provides a roadmap to support the growth of Ireland’s indigenous biopharmachem ecosystem, explains Dr Sinead Keogh, head of sectors at Ibec and director of BioPharmaChem Ireland.
Noting Ireland’s success in attracting 19 of the top 20 global pharmaceutical companies to locate here, she stresses the importance of supporting the indigenous sector. “Ireland is at a crossroads; we have proven we can manufacture for the world, but we must now ensure we have a voice in the policies that will shape this industry for decades. A truly resilient biopharmachem ecosystem is one where domestic discovery, world-leading services, and global manufacturing work in concert. We are calling on the Government to recognise the indigenous biopharmachem sector as a distinct strategic priority within the National Life Sciences Strategy.”
The strategy, which identifies more than 130 home-grown companies operating in the indigenous biopharmachem ecosystem, warns that Ireland must act to ensure that the economic value of its scientific innovation is retained domestically and invested in the future of the sector.
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“These companies span the entire value chain, from early-stage discovery and preclinical development to clinical operations and specialised manufacturing services,” Keogh notes. “The ecosystem is actively supported by the likes of the ARC Hub for Therapeutics and our national research centres, but significant structural barriers remain. The challenge is to ensure this existing energy isn’t stifled by capital scarcity or infrastructure deficits but is instead channelled into a continuous cycle of discovery that anchors long-term value here.”
The industry is highly capital intensive. “Bringing a single medicine to a patient’s bedside is a 10-to-15-year marathon where only one in 10,000 compounds survives,” Keogh explains. “The sector is defined by long horizons and high costs, averaging €2.6 billion per approved medicine. Yet, in drug discovery, there is no such thing as wasted science. When a programme concludes without a commercial drug, the intellectual capital is recycled back into the ecosystem to seed the next wave of breakthroughs. Every attempt serves as a vital knowledge generator for the next.”
The most critical hurdle for Irish companies in this cycle is the so-called funding valley of death, the high-risk transition between laboratory research and clinical trials. “Too often, promising projects stall here not because the science is flawed, but because capital is hardest to attract at that specific moment,” says Keogh. “BPCI is advocating for the State to act as a risk absorber, ensuring more candidates enter the life cycle to increase the probability of global breakthroughs anchoring here.”
A domestic capital architecture specifically designed for the long horizons of life sciences is needed, she adds. “This requires a cohesive approach to funding across three key pillars. First, we need to establish a dedicated pre-seed runway fund of €2 million to €8 million per company to bridge the early research gap. Second, the Ireland Strategic Investment Fund (ISIF) should be mandated to create a ring-fenced evergreen vehicle, ensuring that exit returns are continuously recycled back into the sector.
“Finally, introducing risk-sharing mechanisms can unlock dormant pension capital. This essential step will empower Irish funds to lead major scaling rounds and anchor long-term value at home.”
Beyond capital, the strategy identifies physical and regulatory infrastructure needs. Among these is the provision of specialised wet-lab infrastructure properly equipped for handling complex chemicals and biological matter. “Without this accessible space, our most promising start-ups are often forced to move their research overseas just as they begin to scale,” Keogh points out.
“Furthermore, our clinical trial infrastructure must improve to keep pace with international benchmarks. We need co-investment models to unlock physical capacity and a dedicated EU Capital Navigator unit to help firms secure venture debt from the European Investment Bank (EIB). Committing to a National Drug Discovery Centre of Excellence by 2035 will provide the permanent structural anchor needed for translational research, the vital process of turning early lab discoveries into practical clinical treatments.”
Looking ahead to Ireland’s EU Council presidency, Keogh says it offers a unique window of opportunity “to shape the EU Biotech Act from the inside, ensuring its pilot fund and regulatory structures support fast-growing ecosystems like Ireland, rather than defaulting to larger, established clusters.
“If we do not act now to align national and European mechanisms, we remain participants in a system rather than the architects of it. Ultimately, decades of manufacturing excellence must become the foundation for a new era of Irish discovery, where the next major success is discovered, scaled, and anchored on Irish soil for the benefit of patients and the national economy.”
