Pharmaceutical company concerns over Brexit

Surgical appliances manufacturer Steris has announced a probable upcoming move of its corporate headquarters from the UK to Ireland; although the move is still dependent on shareholder approval. The company already has bases in Westport, Co Mayo and Tullamore, Co Offaly, as well as other bases worldwide.

The proposal to move to Dublin has been put forward due to concerns over Brexit, such as restrictions on the movement of EU citizens into the UK.

In Steris Corp’s Q2 2019 Earnings Conference Call the Chief Executive Officer, President and Director of Steris, Walt Rosebrough explained that when they relocated to the UK they did not expect Brexit and the subsequent uncertainties from this, stating:

“Simply put, significant benefits are at risk if we remain domiciled in the country that is no longer a member of the EU.”

Several large pharmaceutical companies with operations in Wales have also expressed concerns over unknown changes due to Brexit, such as trade restrictions and whether pharmaceutical companies have to get authorisations for new drugs in both the EU and the UK. The manager of Ipsen’s site in Wales has claimed Brexit is a distraction for the UK pharmaceutical industry. Dr Richard Greville, the Welsh branch director of the Association of the British Pharmaceutical Industry (ABPI) suggested businesses are spending up to £100 million in preparation for Brexit which could be spent on drugs, stating:

“Because of the global nature of the industry, the supply, the frictionless movement of goods is absolutely critical because some medicines are manufactured in the UK, some medicines are manufactured in the EU and some medicines are manufactured in the rest of the world… It would be a great pity if it was entirely wasted but perhaps, more importantly, the waste would have been best spent in developing and creating new medicines, which would have been of far greater use to patients across the world.”

Read the Steris Q2 2019 Earnings Conference Call here.

Read more on the comments from Wales here.

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Published on 16. November 2018 in News, News EU, News UK