LIFE SCIENCES HUNGARY - HIPA€¦ · thermal water, and its bathing culture is sup-ported by excellent facilities. The world’s largest thermal lake suitable for bathing is in the

IN HUNGARYLIFE SCIENCES

FOR YOUR INVESTMENTOPENING DOORS

CONTENT

LIFE SCIENCES IN HUNGARY

LABOUR FORCE

INNOVATION

ABOUT HUNGARY

HUNGARIAN INVESTMENTPROMOTION AGENCY (HIPA)

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12

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Published by the Hungarian Investment Promotion Agency, HIPAAll rights reserved © HIPA, 2016

www.hipa.hu

Life Sciences in Hungary 5

LIFE SCIENCES

78%

65%57%

41% 40%

27%

HUNGARY Source: wiiw FDI Database, 2016

POLAND ROMANIA SLOVENIACZECHREPUBLIC

SLOVAKIA

Inward FDI stock in 2014 (percentage of GDP)

HUNGARY

(Source: *HCSO = Hungarian Central Statistical Office)

AREA

93,030 km2

FORM OF GOVERMENT

PARLIAMENTARY REPUBLIC

TIME ZONEGMT + 1 HOUR

CURRENCYFORINT

(HUF)

GDP (PPP)€ 183,989 MILLION

(2014)

UNEMPLOYMENTRATE6.8 %

(2015, HCSO)

INFLATION-0.1%

(2015, HCSO*)

MEMBERSHIP IN INTERNATIONAL ORGANISATIONS

EU, UN, OECD, WTO, NATO, IMF, ECEU member: since 2004

CLIMATETEMPERATE

(similar to the rest of the continental zone)

RISK OF NATURALDISASTERSVERY LOW

OTHER MAJOR CITIES

Debrecen (203,506)Szeged (162,593)Miskolc (159,554)Pécs (145,985)Győr (129,372)

CAPITALBUDAPEST

1,757,618(as of January 2015)

POPULATION

9,855,571(as of January 2015)

ABOUT HUNGARYMAIN FIGURES


INV

ESTM

ENTS

IN F

OCU

S

…created one of the most competitive FLEXIBLE LABOUR

CODEs in Europe(in favour of employers).

…has reduced the CORPORATE TAX RATE

to the lowest level in the CEE region.

…has introduceda FOREIGN-TRADE

FOCUSED foreign policyto attract FDI.

IN ORDERTO IMPROVE THE

BUSINESS CLIMATE, THE HUNGARIAN GOVERNMENT…

…has doubled the amount of

financial support forR&D ACTIVITIES in the 2016-2020

period.

…has reduced the PERSONAL

INCOME TAX

to 15%

…introduced a new act on a practice based DUAL TRAINING

in favour of business needs.

…has entered intoSTRATEGIC PARTNERSHIP

AGREEMENTSwith numerous companies,

giving fast access to the government via workshops and

regular consultations.

ABOUT HUNGARYBUSINESS ENVIRONMENT


EXPATS LIKE HUNGARYBudapest is a city full of surprises and wonder, with its lively centre, pretty parks, majestic river, tall church spires, and lavish spas. One of the most exciting cities in the world, Budapest is full of secrets, hidden spots to explore and old favourites to revisit. This is the city where being bored is not an option.According to Trip Advisor, Budapest is offering the best price-value ratio in the world. Accord-ing to Condé Nast Traveler readers, Budapest is the second best city on Earth.

INTERNATIONAL SCHOOLSExpatriates looking to stick with the curricula of their home countries can choose from a range of private international schools for their children. There are also many English, German and French public and private pre-schools for children aged three to six. The school year starts in September and ends in June, and school buses are usually available at private schools. There are many opportunities to study in foreign languages at universities as well.

EXPLORE THE COUNTRYSIDEHungary’s diverse countryside offers a wide range of outdoor activities: 11,000 kilometres of hiking routes; more than 2,500 kilometres of bicycle paths; 17 golf courses; ten national parks; and an abundance of protected nature reserves for the lovers of fresh air. The protected Puszta-region, the Great Plains, the romantic Danube Bend with its historic sites, and pretty baroque towns such as Eger attract visitors all over the year. Lake Balaton, the largest fresh water lake in Central Europe, is a perfect holiday resort.

THERMAL WATER Hungary is blessed with an abundance of thermal water, and its bathing culture is sup-ported by excellent facilities. The world’s largest thermal lake suitable for bathing is in the Western Hungarian town of Hévíz; the water temperature never drops below a tepid 79°F/26°C, so a dip is possible at any time of year!

IS THE 2. BEST CITYBUDAPEST

ON EARTH

(Condé Nast Traveler, 2015)


ABOUT HUNGARYQUALITY OF LIFE

LIFE SCIENCES IN HUNGARYSTRONG POSITION

1

5b

4

1

2

5a

3

TOP 5 CITIES IN LIFE SCIENCES: 1. Budapest, Hungary2. Skopje, Macedonia3. Istanbul, Turkey4. Moscow, Russia5/a Athens, Greece5/b Warsaw, Poland

Budapest was the most attractive city of the Eastern European and Central Asian region in the field of the automotive industry, mechanical engineering, life sciences, metallurgy, power engineering, transportation and logistics. In addition, it shared first place in the field of infor-mation technology and communications and achieved second place in the field of business and financial services.

NR. 1 IN LIFE SCIENCESThe Conway group – a company providing comprehensive corporate investment con-sulting – has released a publication titled “The World’s Most Competitive Cities 2015”. It evaluated the most competitive big cities in terms of investment having a popu-lation above 500,000 people.

Budapest

Budapest is displayed as one of the most dynamic hotspots of Central Europe, supported by the diversity of the city.


Hungary’s modern pharmaceutical industry was estab-lished in 1901 by Gedeon Richter who began industrial-scale manufacturing in his Budapest pharmacy labora-tory. During the 1910s and 1920s, the foundations were laid down for one of Hungary’s most successful and glob-ally-renowned industrial sectors.

A STRONG PHARMACEUTICAL INDUSTRY WITH A CENTURY-OLD TRADITION

LIFE SCIENCES IN HUNGARYBUILDING ON RICH TRADITIONS

Throughout the 20th century, Hungary was the most important supplier of medicine for Eastern Europe and remained at the forefront of the region’s pharmaceutical industry.

In the 1990s, international pharmas recognized its expert knowledge and potential and established export-oriented, high added value production in the country.

Building on its rich traditions, today the Hungarian phar-maceutical industry contributes to the health of people in almost 80 countries around the world.

Ground-breaking contributions to life sciences were made, such as the first syn-thesis and mass production of Vitamin C, led by Nobel laureate Hungarian scien-tist, Albert Szent-Györgyi.

"More than a century of experience in pharmaceutical manufacturing, globally acknowledged expertise and continuous innovation, these are the values that characterize the Hungarian pharmaceutical industry. For Gedeon Richter, an independent pharmaceutical multinational based in Hungary, the solid operating of its research and development activity is a priority. The favorable economic environment make it possible for us to maintain a high engagement of Hungarian brainpower, a key to our successful international presence."Erik Bogsch, Managing Director, Gedeon Richter Plc.


LIFE SCIENCES IN HUNGARYREFERENCES

Hungary’s pharmaceutical traditions and internationally acknowledged achievements in chemistry and

biology serve as the basis of its healthy biotechnology sector.Today, the country has over 85 core biotechnology companies of various sizes focused on biotech R&D and manufacturing. The majority were established in 2005-2007, and market their products and services worldwide. Hungary has a proven track record in R&D and is a net contributor to the global biotech industry.

HEALTHY BIOTECH SECTOR

"With regards to innovation in the pharma sector Hungary is an attractive place and is among the top 10 countries in Europe in terms of the number of conducted clinical trials, bringing 300 million Euros of investment to the country every year."Pierre Faury, General Manager, Sanofi Hungary

GEDEON RICHTERThe nation’s first large-scale pharmaceutical producer, Richter was established in 1901 and remains the national flagship manufacturer. The largest independent drug maker in CEE, the company operates a highly regarded R&D centre, employing 950 people. Richter runs joint research programs with more than 30 leading university faculties and academic research institutes. The company is also active in original research, which is mainly focused on diseases of the central nervous system.

GLAXOSMITHKLINEIn 2002, UK-based multinational GSK acquired a vaccine production facility near Budapest making a strategic investment of over EUR 130 million. The plant produ- ces antigens for paediatric combination vaccines. The facility employs 220 people.

SANOFIIn 1991, France’s Sanofi acquired ownership of the traditional Hungarian pharmaceutical manufacturer, Chinoin. The French parent has three manufacturing sites in Hungary and also a regional distribution centre, from which products are shipped to 45 countries. Sanofi’s Hungarian activity also includes drug development. The company’s headcount in Hungary is around 2,100.

TEVAGlobal generics leader Teva Pharma- ceuticals acquired the Hungarian pharmaceutical company Biogal in 1995. Today the plant in Debrecen (Eastern Hungary) is the company’s main centre of manufacturing for the region and markets outside Europe. The company supplies products to 44 countries. Teva Group’s European generics R&D centre was inaugurated in 2009 in Debrecen. In Hungary, Teva operates three production sites and a packaging plant, employing 3,000 people.

EGIS (SERVIER)Established in 1912, Egis is one of the most prominent companies in the history of Hungarian pharmaceutical manufacturing. Now owned by France’s Servier, Egis is active in the pharmaceutical value chain from manufacturing through R&D to marketing. The company continues to build on the skills, talents and creativity of Hungarian scientists while focusing its R&D on cardiovascular diseases and disorders of the central nervous system. Servier employs a staff of 3,000 in Hungary.

THOSE WHO HAVE CHOSEN HUNGARY


"Highly educated professionals, an advantageous geographic setting and a supportive environment for investment have been the key drivers to make this development in Hungary."Claire Roger, General Manager, GlaxoSmithKline Ltd.

LIFE SCIENCES IN HUNGARYSUCCESS STORIES

RECENT SUCCESS STORIES AND DEVELOPMENTS

November, 2014 – French animal

healthcare company Ceva announced it would increase its

Hungarian production capacity by 40%. The company declared that further expansion of its poultry

vaccine manufacturing facility in Budapest was

expected in the years to come.

January, 2016 – GlaxoSmithKline has a

cutting edge vaccine manufacturing site in Gödöllő. The site was acquired by

GSK which then invested heavily to upgrade the facilities and technologies to bring new facilities

online in 2008. This site has a key role producing purified Diphtheria and Tetanus antigens which are

used in vaccines containing DT all over the world. An ongoing technology transfer project on the site has

now entered the implementation phase: as a result of this project, additional phases of the manufacturing

process of tetanus and diphtheria vaccines will be located in the Hungarian facility. GMP

operations are expected to commence in the first

half of 2016.

November, 2015 – US-based BD Biosciences, a

world leading provider of diagnostic and research tools for life scientists

celebrated the foundation of its new facility in Tatabánya, Northwest Hungary. Building on positive experiences in the production of

prefillable syringes, Becton Dickinson (BD) decided to also locate the manufacturing of research

reagents to its Hungarian site. The new facility is expected to produce 8,000 different types of

reagents for the pharmaceutical industry by 2018. The investment project of

EUR 20 million will create 107 additional jobs.

October, 2012 –Global generics leader

Teva Pharmaceuticals opened a new EUR 65 million sterile plant near Budapest, creating 260 new

jobs. The facility is one of the biggest of its type in Europe and will operate

with an annual production capacity of 160-200 million units. The new plant will supply

patients in more than 70 countries.

July, 2013 – Hungarian drug maker

Egis, owned by France’s Servier, announced an EUR 16

million investment to strengthen its research and development capacity. The expansion will

create new R&D jobs at the company’s

Budapest site.


BUILDING ON HISTORY- VETERINARY SCIENCES

LIFE SCIENCES IN HUNGARYVETERINARY SCIENCES

1905

"In celebrating 100 years since the creation of the Phylaxia Serum Producing Company, we are very proud of our historical link with this company and its scientific tradition. Over the years, we have shown our commitment to build on our roots and bring to life major innovations, by investing heavily and regularly in CevaPhylaxia. …From 1991 to today, the company has increased its production over a thousandfold, and launched numerous vaccines including the best sellers CevacTransmune IBD, Cevac IBD L, Coglavax, Cogla-pest, Coglapix and Coxevac just to name a few."Thierry Le Flohic, General Manager, Ceva-Phylaxia

Veterinary sciences also have deep roots

in Hungary, with the beginnings of veterinary serum production dating back to the early

1900s.

In 1912, the Phylaxia Serum Producing

Company was established to develop and produce the

classical swine fever serum.

From the 1920s, new vaccines were produced, targeting

anthrax, swine erysipelas and

poultry cholera.

In 1948, all Hungarian biological

production laboratories were reorganized into a single company.

In the 1970s, the company became

a national and international centre

of innovation for veterinary sciences

with more than 2,000 employees and 200

different products manufactured.

In 1999, the company became

a subsidiary of Ceva.

Scientists at Ceva-Phylaxia continue to build on the knowledge-base of their

predecessors. The company’s largest biological R&D centre is in Budapest with a staff of 120.

In July 2014, Ceva-Phylaxia celebrated the 50 billionth

poultry vaccine manufactured in Hungary.

1900s 1912 1920s 1948 1970s 1999 TODAY


1561Health service

manager

1340Chemical engineer

1399Chemist

961Biologist, botanist,

zoologist and related professional

1112General

practitioner

1182Pharmacist, specialized pharmacist

786Chemical

engineering technician

473Dental

technician

765Other human

health care related

professional

918Basic chemicals

and chemical products machine operator

1044Pharmaceutical

products machine operator

LABOUR FORCEPRODUCTIVITY

The Hungarian labour force is well qualified and cost effective, which increases the country’s international competitiveness. The large number of high quality research institutions are a testament to Hungary’s traditional strengths in science and technology. The 2016 statutory gross minimum wage in Hungary is HUF 111,000 (cca. EUR 3,452 per month). The average earnings was around HUF 247,784 (cca. EUR 800) in 2015.

(Source: National Employment Service, 2014)


GLOBALLYRELY ACKNOWLEDGED HUMAN CAPITAL AT A REASONABLE COST

AVERAGE GROSS WAGES IN 2014 (EUR)

LABOUR FORCEEDUCATION

"Hungary has the most developed phar-maceutical industry in the CEE region; 50% of all industrial R&D investments realised in the country derives from this highly innovation driven sector. Gov-ernment incentives contribute to our operations, as well as the central geo-graphic location of Hungary. The globally acknowledged local expertise, state of the art technologies and favourable infra-structure provide a solid background for our research and for the production of medication of the highest quality."Dr. István Hodász, CEO, Egis


MORE THAN

19,000 LIFE SCIENCES STUDENTS IN

TERTIARY EDUCATION

IN 2013/2014

250BIOTECH-RELATED

RESEARCH AND EDUCATIONAL

INSTITUTES MAIN CENTERS:

BUDAPEST, PÉCS, SZEGED,

DEBRECEN

SzegedPécs

Budapest

Debrecen

INNOVATIONR&D POTENTIAL

1925ALBERT SZENT-GYÖRGYI MEDICINEStudy on Vitamin C and cell respiration

1961GEORG VON BÉKÉSYMEDICINEThe physical mechanism of stimulation within the cochlea

1971DENNIS GABOR PHYSICSThe invention and development of holography

1994GEORGE ANDREW OLAH CHEMISTRYContributions to carbocation chemistry

1914ROBERT BÁRÁNY MEDICINEPhysiology and pathology of the vestibular apparatus

1905FÜLÖP VON LÉNÁRD

PHYSICSCathode ray

1925RICHARD ADOLF

ZSIGMONDYCHEMISTRY

Demonstration of the heterogeneous nature of

colloidal solutions

1943GEORGE DE HEVESY

CHEMISTRYThe use of radioactive tracers

in the study of biochemical processes

1963EUGENE WIGNER

PHYSICSContributions to the theory

of the atomic nucleus and the elementary particles

1986JOHN CHARLES POLANYI

CHEMISTRYContributions to

carbocation chemistry

2004ADAM HERSHKO

CHEMISTRYThe discovery of ubiquitin-

mediated protein degradation

The scientific creativity of Hungarians is internationally recognized, which is apparent from the large number of Nobel laureates of Hungarian origin. This talent is particularly noticeable in the fields of natural, technical and medical sciences. Although biotechnology is a relatively young science, its related industries and research fields have longstanding traditions in Hungary, giving companies access to a deep knowledge-base.

R&D IN HUNGARIANLIFE SCIENCES

HUNGARIAN NOBEL LAUREATES


INNOVATIONUNIVERSITY CAPABILITIES

SZEGEDUniversity of Szeged:Hungary’s second largest education and research centre.Szeged Neurobiological Knowledge Centre:Therapy-oriented neurobiological research from molecules to the integrated functioning of the nervous system.Biotechnology and Pharmacology Innova-tion Cluster:A recently established, Szeged-based collabo- ration of SMEs involved in life sciences.

BUDAPESTSemmelweis University:Widely recognized as one of Europe’s leading centres of medical and health sciences. János Szentágothay Centre of Excellence:Carries out immuno-genomic research, modi- fied tissue proliferation, common molecular targets in endemics, info-bionomics in medicine and neuroscientific research. Cell Communication Knowledge Centre: Involved in the development of new technolo-gies based on research of diseases caused by impaired cell communication. Institute of Experimental Medicine of the Hungarian Academy of Sciences:Focuses on basic biomedical research, primarily in the field of neuroscience.

DEBRECENUniversity of Debrecen:The newly established Life Science Centre for molecular medicine, biology and agricultural sciences.Genomnanotech Regional Knowledge Centre:Targets cutting-edge technologies developed at the Debrecen University and its region, including genomics, nano- and biotechnologies.Pharmapolis Innovative Pharmaceutical Cluster: A recently established regional biotechnology cluster.Research Centre of Molecular Medicine:Recognized as a “Centre of Excellence” by the European Union in 2004.

PÉCSUniversity of Pécs:One of Hungary’s largest higher education institutions.Science Building Research Institute:Completed in 2012, a key objective of the project was to improve the basic research potential in the most progressive areas of life sciences.


THE PHARMACEUTICAL INDUSTRY PROVIDED FOR

46.9%OF THE MANUFACTURING INDUSTRY’S

R&D EXPENDITURES IN 2014. (source: HCSO)

LIFE SCIENCES R&D IS CONCENTRATED AROUND FOUR MAJOR CITIES IN HUNGARY

INNOVATIONCLINICAL RESEARCH

BENEFITS OF CLINICAL

TRIALS IN HUNGARY

Highly motivated and loyal

investigators Fast and reliable patient

recruitment

EU-compliant legislation

Wide availability

of untreated patient

populations

Patients trust physicians

and Western medicine

Outstanding data qualityModern

hospital and diagnostics equipment to support

complex trials

Excellent English

language skills

Centralized health care

systems concentrate

large numbers of patients

High density of well-equipped Phase I study

centres

Local study monitors and

CROs are more highly

skilled than the international

average

Higher incidence of certain

disorders than in Western

Europe

"With a population of 10 million people, the highest standard of medical care and great investiga-tor and patient engagement, Hungary exempli-fies an excellent setting for global clinical research."Vlad Bogin, MD, FACP, CEO of Cromos(tm) Pharma


Similarly to the health care system, the national health insurance scheme is also centralized in Hungary. Being the sole health insurance provider in the country, the databases of the National Health Insurance Fund offer a unique means of access to patient data. Such concentration of information makes Hungary an even more favourable choice for companies engaged in clinical research.

HUNGARY HAS A WORLDWIDE REPUTATION

FOR INTERNATIONAL CLINICAL TRIALS, WITH

MORE THAN

SUCH TRIALS REGISTERED EVERY YEAR.THIS IS AN OUTSTANDING

NUMBER CONSIDERING HUNGARY’S POPULATION

OF 10 MILLION.

ATTRACTIVE LOCATION FOR CLINICAL RESEARCH

330

HOW DO WE SUPPORT YOUR LIFE SCIENCES PROJECT?

AFTER YOU HAVE CHOSEN

HUNGARY

PLEASE CONTACT US

Address: 1055 Budapest, Honvéd utca 20. Customer service: [email protected]

Telephone: +36 1 872 6520Web: www.hipa.hu

We are open to your feedback and offer madiation between

government and business based on your inputs.

We support your further expansion

and plans.

BEFORE YOU MAKE A DECISION

WE OFFER YOU…

…one-stop-shop management consultancy services to address your

business needs.

…meetings with HR & Real Estate agencies, Law firms and other

consultants based on your needs.

…tailor-made incentive offers and information

packages on the business environment,

labour market, tax regulations, etc.

…reference visits at companies that are

already established in Hungary.

…location search & evaluation

+site visits.

…assistance with your incentive

application.


HIPAOUR SERVICES

As a member of the European Union, Hungary’s regulations on incentive opportunities are in compliance with EU regulations. One

of Hungary’s competitive advantages over other countries in the region is the government’s strong commitment to increasing the competitiveness of SMEs and large enterprises in Hungary.Alongside the regulatory tools that contribute to the competitive business environment of local companies, Hungary offers a wide range of incentives to facilitate foreign direct investments and reinvestments by local enterprises. Subsidies may be granted as regional aid or specific aid, such as R&D subsidies.

Special tax incentives and EU tenders for R&D investments

GOVERNMENT INCENTIVES

CASH SUBSIDIESfor investments,

training, job creation

and R&D

TAX INCENTIVESreduction of

corporate tax, social tax, or for

encouraging R&D activities…

LOW-INTEREST LOANS

SPECIAL INCENTIVES

of the free enterprise zones

THESE INCENTIVES INCLUDE, BUT ARE NOT LIMITED TO

HIPAINCENTIVES OVERVIEW

Regional grants are the most typical forms of incentives for greenfield / brownfield investments or reinvestments. The maximum amount of regional incentive is shown in the regional aid intensity map. The map below illustrates that, depending on the region, regional aid available for investment by a large enterprise may be up to 50% of the eligible costs of the investment. For investments not exceeding €50 million, the maximum intensity ratio can be increased by 10% for medium-sized and by 20% for small enterprises.

The maximum aid intensity available decreases if the investment is a large investment (exceeding €50 million): 50% of the maximum aid intensity shown in the regional aid map is available for investments between €50 and €100 million, with 34% of the maximum aid intensity for investments over €100 million.For information on up-to-date and individual incentive packages, please contact HIPA directly.

SOUTHERNTRANSDANUBIA

CENTRALTRANSDANUBIA

WESTERNTRANS-

DANUBIASOUTHERN

GREAT PLAIN

NORTHERNGREAT PLAIN

NORTHERNHUNGARY

CENTRAL HUNGARYBudapest

Szeged

Debrecen

Miskolc

Győr

Székesfehérvár

25% 35%

Pécs

0 / 20 / 35%

50%


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LIFE SCIENCES HUNGARY - HIPA€¦ · thermal water, and its bathing culture is sup-ported by excellent facilities. The world’s largest thermal lake suitable for bathing is in the