Current inflationary pressures because of increased energy and pay rates, combined with the weakness of the euro, were undermining competitiveness and threatening the growth of the medical devices and diagnostics sector in Ireland, according to Ms Sharon Higgins, the director of the Irish Medical Devices Association.

Companies importing raw materials from the US or headquartered in the US were being badly affected by the weak euro, she said. They were under pressure from the US over increasing costs.