Transcript András Bakács

Workshop ”InDeCS-H: Development of Healthcare
Biotechnology SMEs“
10th September 2009
Budapest
Strategy for Hungarian pharmaceutical
and biotechnology industry
András BAKÁCS
Head of Department
Department for Knowledge Economy
Ministry for National Development and Economy
Background
• August 2008: new concept in the
Hungarian development policy: sector
specific industrial and innovation policy
programmes shall be prepared
• October 2008: the financial and economic
crisis further emphasized the need for
sector specific development policy
Priority sectors
• Priority sectors chosen by the Government:
–
–
–
–
ICT,
pharmaceutical industry and biotechnology,
automotive industry,
logistics,
• Why these sectors?
– knowledge-intensive
– high growth and value added capacity
– contribution to the competitiveness of the economy
Strategy and Action Plan
• The Pharmaceutical and Biotechnology
Action Plan was adopted by the
Government on 8th July 2009
• The Action Plan is based on the main
findings of two preparatory studies
prepared by KPMG and HBA
• The Action Plan focuses on healthcare
biotech
Relation between pharmaceuticals and
biotechnology
Hungarian red biotech sector
Hungarian Pharma Industry
Mostly private SMEs, less than 25-50 employees
Some large companies, registered on the stock
exchange
Young sector: All companies established after
1990, most of them after 2000
Traditional: Companies established before 1990,
some of them before world war I
Hungarian ownership
Multinational owners
Rapid growth, acquisitions
Organic growth
High risk, slow return original R&D activity
Low risk, generic R&D activity
Most of the turnover comes from global markets,
B2B relation, from services
Most of the turnover comes from domestic and
neighbouring markets, B2C relation, from products
Major problems are related to R&D, enterprise
development, accessing international markets
Major problems are related to consumption and sale,
costs and profits in relation to pricing and
reimbursement system
Source: Convincive Consulting, 2008
Pharmaceutical industry in Hungary
300
200
ROCHE
ASTRA
ZENECA
GLAXO
SMITHKLINE
PFIZER
TEVA
EGIS
RICHTER
GEDEON
0
NOVARTIS
100
SANOFI
AVENTIS
Árbevétel termelői áron (Mrd HUF)
• 100 years expertise
• 75% of turnover from exports, 15 000 employees
• 53% of the complete turnover produced by the 10 largest
companies
Goals
•
General objectives:
– To provide favourable regulatory and development policy environment in
order to increase the competitiveness of pharma and biotech companies in
Hungary
•
Specific objectives of the Action Plan:
– To promote the restructuring of Hungarian pharma industry according to
international trends, building on the advantages of domestic biotech sector
– To enhance the role of biotechnology in pharmaceutical innovation and to
increase the number of international R&D centers based on domestic
knowledge
– To promote university industrial relations, mobility, human resources,
knowledge transfer
– To enhance the role of biotech sector in accessing markets for domestic
pharmaceutical research
Pillar I: R&D
• Taking into account the specific features of pharma and biotech
industry in resource allocation
• Enhancing the increase of R&D expenditures by tax regulation
• Promoting access to finance of biotech SMEs
• Introducing Young Innovative Company (YIC) status in Hungary
• Streamlining the incubator programmes
• Promotion of life sciences and scientific studies to young people
• Providing the necessary human resource supply for pharma and
biotech R&D by education and attracting experts working abroad
• Better exploitation of clinical R&D
Pillar II: Production
• Promoting pharma and biotech investments in Hungary
by active marketing and investment promotion programs
• Providing the necessary human resource supply for
pharma and biotech R&D by education and attracting
experts and sector managers working abroad
Pillar III: Regulatory environment
• Reconsidering of the sector-specific regulatory
environment, analysis of tax and legal burdens on
pharma industry and biotech companies from the
competitiveness point of view and harmonise them with
the practice of neighbouring countries
• Accelerating the drug registration process
Conclusions
The first year of governmental industrial policy has
significant results:
• The government and the industry have started an active
cooperation,
• A R&D related tax allowance will be introduced next
year: 20% in 2010 and 100% in 2011
Thank you for your kind attention!
[email protected]