US medical device company Dexcom has announced plans to invest €300 million over the next five years to build a new manufacturing site in Co Galway, which it says will create “up to 1,000 high-skilled” jobs in the region.
On Friday the California-headquartered company, which makes continuous glucose monitoring systems for people with diabetes, confirmed that it would seek planning permission for its first European facility at an IDA Ireland-owned land bank in Athenry. In a statement the inward investment agency said that the facility would have the capacity to produce “millions” of Dexcom’s sensor devices each year.
It said that Dexcom expected to create around 500 construction jobs in the region and up to 1,000 high-tech graduate and technician level jobs once the site is fully operational.
“Ireland has an exceptional talent pool and an established medtech sector, making Athenry the perfect location for us to establish a new, state-of-the-art manufacturing facility,” said Barry Regan, Dexcom executive vice-president of global operations.
It marks the second big announcement by a global player in this specific medical device area in the past year. Last August US medtech giant Abbott Laboratories is investing €440 million in Ireland with plans for a big new manufacturing plant in Kilkenny and additional jobs in Donegal. The expansion will mean the company adds 1,000 jobs to its Irish workforce and make the State a leader in the production of high-tech diabetes glucose monitoring devices.
Michael Lohan, chief executive of IDA Ireland, who was appointed to lead the agency last month, said Dexcom’s decision to choose Athenry was an “important strategic investment” for the company from which the region would “greatly benefit”. He said: “Ireland’s track record in attracting medtech investments from big innovators speaks for itself. This latest investment only enhances that further.”
Ireland was an initial launch market in October 2022 for Dexcom’s G7 product, a wearable device that provides diabetes patients with automatic glucose readings sent to their smart device. Mr Regan said: “With the continued success of our Dexcom G7 in Europe, we are pursuing an ambitious growth strategy that requires increased manufacturing capacity to support our rapidly expanding European user base.”
The company recently reported revenue growth of 18 per cent in the first quarter of 2023 on the same period last year with total sales of more than $741.5 million following the launch of the product in the US market. Dexcom said it expects revenues to grow to at least $3.4 billion in 2023, a 17 per cent jump on 2022 with its adjusted profit margin to widen to 26 per cent.
Lured here by the low-tax environment, Ireland’s status in Europe and its talent pool, Dexcom and Abbott are among raft of high profile pharmaceutical and health tech companies that have announced significant investments in Ireland in recent times.
Last December Pfizer confirmed plans to invest more than €1 billion in its Grange Castle manufacturing facilities in Dublin, adding between 400 and 500 jobs over the next five years, the largest single pharmaceutical sector investment in the history of the State.
In March US bio-pharma giant Eli Lilly announced its intention to pump more than €927 million in a new medicine manufacturing site in Limerick, adding up to 1,500 jobs to its already 2,700-strong workforce here.