Budget 2026 Must Back Innovation to Strengthen Sector Resilience, Says BioPharmaChem Ireland

• BioPharmaChem Ireland launched their Budget 2026 submission, calling for strategic investments in the innovation ecosystem to future-proof competitiveness.

BioPharmaChem Ireland (BPCI), the Ibec trade association representing the biopharmaceutical and chemical sector, is calling for Government to prioritise measures that build sector resilience through strategic investments in the innovation ecosystem and other targeted measures.

Sinéad Keogh, Head of Sectors at Ibec and Director of BioPharmaChem Ireland said:

“While last week’s US-EU joint statement on a framework agreement for a trade deal presents challenges for our industry, we remain confident in the sector’s resilience and strong foundation during this period of change. Amid shifting trade dynamics, Government must view Budget 2026 as an opportunity to address competitiveness issues and drive industry development by strategically funding measures that leverage existing sector strengths and stimulate new growth. We need investments that will future-proof our sector to ensure Ireland continues delivering life-saving medicines to patients across Europe and globally.

Public sector research is a core component of our industry development, providing a platform for collaborative research, enabling us to move up the value chain, and producing the industry-ready PhD talent our sector critically needs. The €4.55 billion capital allocation to DFHERIS under Ireland's National Development Plan is a welcome sign that the Government recognises the value of research. This investment must now be complemented by enhanced support for the Life Sciences research ecosystem to secure the future success of one of our nation’s most critical industries.

To ensure the success of Ireland’s forthcoming National Life Sciences Strategy, we are also calling for Budget 2026 to resource a dedicated Office of Life Sciences to turn strategy into action. An Office at national level will place Ireland in a strong position to lead on critical life sciences policy files during the upcoming Presidency of the Council of the European Union.”

In addition to increased expenditure in public research and the Office of Life Sciences, BioPharmaChem Ireland has also identified investments in key areas such as skills and talent, sustainability, and regulatory capacity. The BPCI Budget 2026 Submission is calling for:

• An increase in public investment in research and innovation by €70 million to bring expenditure in R&I to 1% of GNI by 2035, with an appropriate allocation for Life Sciences, akin to the scale of the ecosystem here
• A broadening of the R&D Tax Credit to cover process innovation, sustainability-led improvements, new-to-firm technologies, and iterative product development, and an increase of the R&D Tax Credit to 35% on qualifying expenditure.
• Additional investment of €15 million in the National Training Fund to meet demand and expand reach of existing Skillnet Business Networks, and a higher percentage of State support to maintain the affordability of the Networks for companies.
• An allocation of €1 million to establish and resource a dedicated Office of Life Sciences within the Department of Enterprise, Tourism and Employment.
• An increase in the regulatory capacity of the HAS, EPA and HPRA to support timely approval processes.

Joyce Fitzharris, President of SK pharmteco, Small Molecule, Europe and Chairperson of BPCI said:

“Ireland’s BioPharmaChem industry continues to be one of the country’s greatest success stories by advancing healthcare innovation, creating high-value employment and driving regional and national economic growth. Ensuring the long-term competitiveness of our sector is more important than ever. In an era of heightened geopolitical uncertainty and shifting international dynamics, Ireland must take proactive steps to reinforce its position as a global leader in life sciences.”

The biopharma and chemical sectors play a vital role in Ireland’s economy, with 13 of the top 15 global biopharma companies by Market Cap operating in Ireland. The sector, which has invested over €12 billion in Ireland over the last decade, operates over 100 manufacturing plants, with over 50 FDA approved sites. Ireland is one of the largest net exporters of pharmaceuticals in the world, with over €116 billion worth of exports annually.

BPCI’s full budget submission can be found here: https://www.ibec.ie/connect-and-learn/industries/life-sciences-and-healthcare/biopharmachem-ireland/bpci-campaigns/BioPharmaChem-Ireland-Budget-2026-Submission