Hungarian Investment and Trade Development Authority
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Hungarian Investment and Trade Development Authority



Presentation by Mr. Harskuti, representative of Hungarian Investment and Trade Development Authority, at Global Sourcing Council Conference at Stevens Institute of Technology

Presentation by Mr. Harskuti, representative of Hungarian Investment and Trade Development Authority, at Global Sourcing Council Conference at Stevens Institute of Technology



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Hungarian Investment and Trade Development Authority Hungarian Investment and Trade Development Authority Presentation Transcript

  • Long t radition , n ew FDI into R&D
    • National pharmaceutical industry with strong roots
    • Strong presence of large international pharmaceutical and biotechnology companies:
    • R&D and manufacturing
    • O ne of the largest and most developed pharma markets in Eastern Europe;
    • T he strongest pharma sector in terms of technology and productivity in Eastern Europe;
    • EU harmonized pharma legislation;
    • T he largest FDI stock in the pharma sector in the region ;
    • E xpanding branded products market;
    • G rowing pharma export
    • Strong scientific and technological base of highly skilled workforce
      • Large n umber of students in pharma related high education faculties
    • Cost advantages: 30-50% of the EU wage level
      • Well-trained researchers and scientists
      • Lower o verhead costs
    • Academic-Corporate cooperation
      • Universities : Budapest, Szeged, Pécs, Debrecen, Gödöllő, Veszprém
      • Main Research Centres : Agricultural Biotechnology Center, Gödöllő, Bay Zoltán Institute for Biotechnology, Szeged, Biological Research Center, Szeged, Institute for Small Animal Researches, Gödöllő, Central Food Research Institute, Budapest
    Added value of the pharma sector
    • Hungary is the fifth largest medicine producer in Europe
    • Largest biotechnology innovation and spin-off sector in CEE
    • Extensive R+D cooperation
    • U niversity biotechnology centres clustered in four academic towns
    Life sciences A High Performing Sector
  • Latest investments in the life sciences sector
    • 2005:
    • Chinoin -Sanofi (F) : Establishment of a new R&D cent re in Budapest
    • Teva Hungary (Israel) : Manufacturing active pharmaceutical components,
    • Sajóbábony
    • Icon Clinical Researc (Ireland) h : New R&D centre in Budapest
    • Chinoin -Sanofi : Hypodermic syringe manufacturing plant + lab + warehouse in Csanyikvölgy. Planned capacity of 100million syringe per year.
    • Richter Gedeon : Expanding and modernizing the capacity of the Dorog plant
    • 2006:
    • Chinoin-Sanofi : 2nd R&D center in Budapest
    • Astellas Europe (Japan) : Establishment of a Hungarian sales office
    • AIBMR Life Sciences (USA) : Establishment of a European office in Budapest.
    • Synexus Clinical Res.(UK): Establishment of clinical research center , Budapest
    • GlaxoSmithKline (UK) : Establishment of high-tech vaccine-manufacturing plant in Gödöllő .
    • Servier-EGIS (F) : Establishment of chemical research lab.
    • Teva Hungary : Establishment of logistics cent r e in Gödöllő .
    • 2007
    • Beike Biotechnology : Chinese stem cell research project, Budapest
    • St James (Malta) : hospital project in Budapest
    • AAI Pharma : Representative office of the American pharma company
    • Sauflon Pharmaceuticals (UK) : Contact lense factory near Budapest. Capacity: 100 million contact lenses/ year
    • Pfizer (USA) : Logistics and dist r ibution centre in Budapest
    • 2008
    • TEVA (Israel) : expansion of pharmaceuticals manufacturing capacity in Debrecen
    • Richter Gedeon (H) : R&D in Budapest and Debrecen
    Latest investments in the life sciences sector
  • Nanotechnology in Hungary
    • Close to 50 research groups or institutes including 20 companies in nanotechnology research or manufacturing ;
    • Innovative areas : automotive, consumer electronics, pharmaceuticals, plastic, cre r amics and light and heavy metals manufacturing :
      • bio/chemical sensors
      • medical instruments
      • composite polymers
      • laser -technology
      • ceramics
      • metallurgy
      • thin-layer coating, surfaces
  • Medical device manufacturing
    • Significant tradition of scientific equipment manufacturing
    • 200 manufacturers at present, production value: USD 300 million/year
    • Major products : orthopedic appliances, X-ray generators, dental fittings, artificial body parts, electrodiagnostic apparatus, needles, syringes
    • Most locally produced goods are exported : Germany is the main destination, Russia is still a significant market
    • The market will expand 3% annually until 2012 to USD 900 million (USD 92/capita)
    • Legal background is harmonized with the EU
  • Clinical trials
    • Hungary has a solid record of attracting and conducting international clinical trials
    • O ver 250 clinical trials performed each year – an outstanding number compared to Hungary’s population.
    • Reasons for conducting clinical trials in Hungary:
        • Rapid and reliable recruitment of study population
        • Investigators are motivated and qualified
        • High Quality of Data
        • Reasonable price advantage
        • Qualification of local study monitors is above international average
  • Strong innovation capacity
    • The World Economic Forum ranks Hungary 24 among 131 countries in terms of the quality of scientific research institutions
    Source: Global Comp e titiveness Report, World Economic Forum, 2006/ 2007 Ranking Country Switzerland 1 USA 2 Germany 5 France 19 Norway 21 Hungary 24 Czech Republic 30 Slovenia 33 Spain 49 China 56 Poland 64 Greece 76
  • Four life science clusters
    • Budapest, Szeged,
    • Debrecen, P é cs: large
    • international
    • pharmaceutical and
    • biotechnology companies
    • clustered around
    • universities
    • E nhance the cooperation of
    • academia and business
    • Coordinated by Universities
    • Granted € 6.3 million each
    • by the National Research
    • and Technology Council
    • Long-term programs (8-10
    • years) in basic and applied
    • research
    Genomnanotech Knowledge Centre Neurobiological Knowledge Centre Cell Communication Knowledge Centre Infobionics Knowledge Centre Medipolis Knowledge Centre Debrecen Szeged Budapest Pécs
  • Competitive wages compared to Western Europe Source: Mercer, 2007
  • Regulatory system
    • The EU membership strengthened the regulatory system which ensures a transparent operating environment ;
    • Medicines Act (1999) : the national procedures are in line with EU directives ;
    • Pharmaceutical market regulations 2005 ;
    • Pharmaceutical Economy Act, June 2007 established medicine pricing in an auction process that sets prices based on the cheapest drug ;
    • T he intellectual property regime is in compliance with international standards .