Hungarian Investment and Trade Development Authority


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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

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