R&D Tax credit needs to be broadened to reflect modern realities of the BioPharmaChem Sector
- BioPharmaChem Ireland publishes Pre-Budget submission
- Expansion of R&D Tax Credit, increased caps for outsourced research, and improved infrastructure for clinical trials among top priorities
BioPharmaChem Ireland, the Ibec group representing the sector, believes that broadening the scope of the R&D tax credit to include areas such as advanced process innovation could further enhance investment opportunities, following the expansion of the credit from 30% to 35% in Budget 2026. Last week, BioPharmaChem submitted its annual Pre-Budget submission to the Government, calling for increased caps on outsourced research and the acceleration of Ireland’s national clinical trials infrastructure. The submission noted that while the sector welcomed the Government’s active commitment to developing Ireland’s first National Life Sciences Strategy, it urges its swift progression, including targeted State funding and the establishment of an Office of Life Sciences.
Director of BioPharmaChem Ireland, Sinead Keogh, said:
"As we approach Budget 2027, our sector is navigating significant geopolitical complexities and, more importantly, intensifying global competition for capital investment. This is occurring at a time of rapid technological change for the industry. To remain globally competitive, we need to continue to assess how we mitigate rising operational costs and cultivate a structurally resilient industry. This requires incentivising prolonged sustainability, Artificial Intelligence adoption, deep digitalisation, and indigenous innovation across the entire ecosystem.
"We acknowledge the work already done by the Government to enhance our R&D offering. R&D has become the new calling card for Ireland’s global attractiveness to international investors, while also supporting growth within our indigenous sector. By expanding the R&D Tax Credit framework to explicitly support areas like advanced process innovation, Ireland can safeguard its status as a world-class innovation hub."
Tim Shanahan, VP External Manufacturing Operations at Ipsen and Chair of BioPharmaChem Ireland said:
"Ireland has been on a remarkable journey over the past decade, with more than €12 billion invested in biopharmachem enterprises. This funding has underpinned the success of a sector that now directly employs 73,000 people, supports a further 30,000 indirect jobs, and generates €175 billion in exports annually.
"However, we cannot afford to be complacent. The current geopolitical climate and unstable trading environment require a resilience-first approach that directly addresses both EU and Irish competitiveness challenges. Because of the long investment cycles inherent to our sector, the decisions we make now- whether in improving our regulatory environment, encouraging high-level innovation, or creating a more joined-up strategic approach to modern medicine- will ensure Ireland remains well-positioned for the future pipeline of international projects and the continued growth of our indigenous sector."
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