FACTORY OUTPUTS HAVE spiked as Ireland-based pharma giants claw their way back from the “patent cliff”.
New numbers from the Central Statistics Office today revealed Irish manufacturing production increased 12.8% in July compared to the previous month and 19.9% against the same time last year.
The “modern” sector – made up of high-tech and chemical sectors – showed a monthly lift of 11.4%, while the “traditional” sector was up 4.7%.
The industrial turnover index was up 3.3% between June and July and 18.1% on July 2013.
Good karma for pharma after “the cliff”
Davy Research analyst David McNamara said the sharp increase in manufacturing outputs had been mainly driven by the pharmaceutical sector – which was up 44.5% on the year.
But he said previous weakness in the sector, driven by the “patent cliff”, had little impact on the wider economy.
“We would therefore not expect the rebound in pharmaceutical output this year to have much of a positive impact on consumer spending or employment in 2014,” he said.
The patent cliff hit in 2013 when the exclusive licenses for several drugs made by Ireland-based pharma companies expired and cheaper, generic brands were able to take over.
A good excuse for a drink?
McNamara said growth in the labour-intensive traditional sector, which included well-performed industries like food and drinks, and machinery and equipment, was more encouraging.
“Indeed, the recovery in the traditional sector is now outperforming a slowing European cycle,” he said.
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