In Westport, a charming town on Ireland’s Atlantic coast, Croagh Patrick’s peak is a notable feature of the skyline. In contrast, windowless grey factory units that produce the global supply of Botox for a U.S. company significantly influence the town’s economy. The U.S. president, Donald Trump, has expressed a desire to relocate pharmaceutical production back to the United States.
Trump has intensified his criticism of American businesses operating in Ireland, threatening tariffs to incentivize investors to relocate back to the U.S. This situation is causing anxiety among Westport’s 7,000 residents, with around 1,500 employed by AbbVie to produce the cosmetic drug.
Geraldine Horkan, the Westport Chamber of Commerce’s chief executive and a former Allergan employee prior to its takeover by AbbVie in 2020, described the local sentiment as “people are holding their breath,” comparing it to an airplane in a holding pattern.
Ireland is a significant hub for U.S. pharmaceutical companies, including Pfizer, Eli Lilly, and Johnson & Johnson. Besides Botox, which is exported from Westport as dry powder for various medical and cosmetic treatments, Irish factories manufacture active ingredients for drugs like Viagra, Mounjaro, and cholesterol-lowering statins.
Ireland’s urgent exports of pharmaceuticals to the U.S. increased in anticipation of potential tariff impositions. In February, 91 percent of Ireland’s goods exports to the U.S. were chemicals and related products, with pharmaceutical exports to the U.S. nearing €20 billion in the year’s first two months, contrasted with €44 billion for the entirety of the previous year.
Despite Trump’s global tariffs, which were recently paused at a baseline global rate of 10 percent pending trade negotiations with the EU and other countries, pharmaceutical goods currently remain exempt.
Ireland’s foreign and trade minister, Simon Harris, described the possibility of U.S.-imposed tariffs during ongoing negotiations as “inappropriate” and “bizarre.” Nonetheless, the U.S. Commerce Department has commenced a “Section 232” investigation into the sector, potentially leading to import restrictions considered threatening to national security. This could result in tariffs within the coming months, according to U.S. Commerce Secretary Howard Lutnick.
Trump recently reiterated his concerns regarding Ireland’s influence on the U.S. pharmaceutical industry during a meeting with Ireland’s Taoiseach Micheál Martin. He expressed discontent over the current global production locations of pharmaceuticals.
Allergan established its plant in Westport in 1977, initially to produce contact lens solutions and eyecare products. Botox has since become a major product, with 70 percent of Westport’s output sold in the U.S., as per the company’s 2023 results.
Botox faces competition from similar products like Dysport and Xeomin. Despite this, AbbVie remains confident in maintaining its market leadership. In the previous year, AbbVie reported $2.72 billion in net revenues from cosmetic Botox and $3.3 billion from therapeutic Botox. Should tariffs be enacted, drug prices would likely rise, with cosmetic applications not covered by U.S. health insurance.
The production capacity in Westport, bolstered by a €160 million investment in a second facility in 2020, cannot be easily relocated, notes Peter Flynn, a local councillor and former Allergan international director.
The automation of production lines and heightened quality standards in Ireland require highly qualified personnel, placing a significant emphasis on research and development (R&D). Ireland stands as the world’s third-largest pharmaceutical exporter, housing 90 sites that supply global markets and having seen over €10 billion in sector investments over the past decade.
In response to U.S. positioning, several pharmaceutical companies have announced substantial U.S. investments. Johnson & Johnson plans a $55 billion investment in the next four years, Eli Lilly announced a $27 billion investment, and Novartis intends to invest $23 billion in manufacturing and R&D.
Pharmaceutical executives have communicated with European Commission President Ursula von der Leyen, warning of potential losses in investment and R&D spending due to U.S. tariffs and EU reforms on intellectual property protections.
Ireland’s vulnerability to potential U.S. actions is notable, exacerbated by its hosting of U.S. tech giants, which could also be targeted by tariffs. Additionally, the tech and pharmaceutical sectors contribute significantly to the country’s corporate tax revenues.
Beyond its economic contributions, the pharmaceutical industry has played a crucial role in Westport’s development into a vibrant town replete with cultural and recreational activities. The industry’s local presence includes significant support for community initiatives and sports teams.
Adrian Noonan, owner of Knockranny House Hotel, emphasized the substantial impact if pharmaceutical companies were to leave. The regulatory process for new pharmaceutical facilities is lengthy and complex, potentially delaying any transition to U.S. production.
In this climate of uncertainty, local figures like Philip Heaney, a pharmacist, express significant concern, emphasizing the potential dramatic changes that could arise from shifts in the pharmaceutical sector’s location.
