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LIFE SCIENCES in HUNGARY OPENING DOORS for YOUR INVESTMENT Life Sciences in Hungary 5 LIFE SCIENCES IN HUNGARY OPENING DOORS FOR YOUR INVESTMENT Life Sciences in Hungary 5 Published by the Hungarian Investment LIFE SCIENCES CONTENT Promotion Agency, HIPA All rights reserved © HIPA, 2016 www.hipa.hu 6 ABOUT HUNGARY 12 LIFE SCIENCES IN HUNGARY 22 LABOUR FORCE 26 INNOVATION HUNGARIAN INVESTMENT 32 PROMOTION AGENCY (HIPA) Life Sciences in Hungary 7 ABOUT HUNGARY MAIN FIGURES CURRENCY INFLATION FORM OF GDP (PPP) GOVERMENT FORINT € 183,989 -0.1% PARLIAMENTARY (HUF) MILLION (2015, HCSO*) REPUBLIC (2014) AREA TIME ZONE 93,030 km2 GMT + 1 HOUR UNEMPLOYMENT RATE 6.8 % (2015, HCSO) HUNGARY OTHER MAJOR CITIES POPULATION CAPITAL BUDAPEST Debrecen (203,506) Szeged (162,593) 9,855,571 1,757,618 (as of January 2015) (as of January 2015) Miskolc (159,554) Pécs (145,985) Győr (129,372) 78% CLIMATE RISK OF NATURAL 65% TEMPERATE DISASTERS 57% (similar to the rest of VERY LOW the continental zone) 41% 40% 27% Inward FDI stock in 2014 MEMBERSHIP IN INTERNATIONAL (percentage of GDP) ORGANISATIONS EU, UN, OECD, WTO, NATO, IMF, EC EU member: since 2004 HUNGARY CZECH SLOVAKIA POLAND ROMANIA SLOVENIA Source: wiiw FDI (Source: *HCSO REPUBLIC Database, 2016 = Hungarian Central Statistical Office) Life Sciences in Hungary 9 ABOUT HUNGARY …has reduced the CORPORATE TAX RATE BUSINESS ENVIRONMENT to the lowest level in the CEE region. …introduced a new act …has reduced the on a practice based PERSONAL DUAL TRAINING IN ORDER INCOME TAX in favour of business TO IMPROVE THE to 15% needs. BUSINESS CLIMATE, THE HUNGARIAN …created one of GOVERNMENT… the most competitive FLEXIBLE LABOUR CODEs in Europe (in favour of employers). …has entered into INVESTMENTS IN FOCUS INVESTMENTS STRATEGIC PARTNERSHIP AGREEMENTS with numerous companies, giving fast access to the government via workshops and regular consultations. …has doubled …has introduced the amount of a FOREIGN-TRADE financial support for FOCUSED foreign policy R&D ACTIVITIES to attract FDI. in the 2016-2020 period. Life Sciences in Hungary 11 ABOUT HUNGARY EXPATS LIKE HUNGARY EXPLORE THE COUNTRYSIDE Budapest is a city full of surprises and wonder, Hungary’s diverse countryside offers a wide QUALITY OF LIFE with its lively centre, pretty parks, majestic range of outdoor activities: 11,000 kilometres river, tall church spires, and lavish spas. One of of hiking routes; more than 2,500 kilometres the most exciting cities in the world, Budapest of bicycle paths; 17 golf courses; ten national is full of secrets, hidden spots to explore and parks; and an abundance of protected nature old favourites to revisit. This is the city where reserves for the lovers of fresh air. The being bored is not an option. protected Puszta-region, the Great Plains, According to Trip Advisor, Budapest is offering the romantic Danube Bend with its historic the best price-value ratio in the world. Accord- sites, and pretty baroque towns such as Eger ing to Condé Nast Traveler readers, Budapest attract visitors all over the year. Lake Balaton, is the second best city on Earth. the largest fresh water lake in Central Europe, is a perfect holiday resort. BUDAPEST IS THE 2. BEST CITY ON EARTH (Condé Nast Traveler, 2015) 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 INTERNATIONAL SCHOOLS thermal lake suitable for bathing is in the Western Expatriates looking to stick with the curricula of Hungarian town of Hévíz; the water temperature their home countries can choose from a range of never drops below a tepid 79°F/26°C, so a dip is private international schools for their children. possible at any time of year! 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. Life Sciences in Hungary 13 LIFE SCIENCES IN HUNGARY TOP 5 CITIES IN LIFE SCIENCES: 1. Budapest, Hungary STRONG POSITION 2. Skopje, Macedonia 3. Istanbul, Turkey 4. Moscow, Russia 5/a Athens, Greece 5/b Warsaw, Poland NR. 1 IN LIFE SCIENCES The 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. 4 5b Budapest is displayed 1 as one of the most dynamic hotspots of Central Europe, supported by the diversity of the city. Budapest1 2 3 Budapest was the most attractive city of the Eastern European and Central Asian 5a 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. Life Sciences in Hungary 15 Throughout the 20th century, Hungary was the most important LIFE SCIENCES IN HUNGARY supplier of medicine for Eastern Europe and remained at the BUILDING ON RICH TRADITIONS 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. A STRONG Building on its rich traditions, today the Hungarian phar- maceutical industry contributes to the health of people PHARMACEUTICAL in almost 80 countries around the world. INDUSTRY WITH A CENTURY-OLD TRADITION 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. "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 Ground-breaking contributions to life pharmaceutical multinational based in Hungary, sciences were made, such as the first syn- the solid operating of its research and development thesis and mass production of Vitamin C, activity is a priority. The favorable economic led by Nobel laureate Hungarian scien- environment make it possible for us to maintain tist, Albert Szent-Györgyi. a high engagement of Hungarian brainpower, a key to our successful international presence." Erik Bogsch, Managing Director, Gedeon Richter Plc. Life Sciences in Hungary 17 LIFE SCIENCES IN HUNGARY REFERENCES TEVA GLAXOSMITHKLINE Global generics leader Teva Pharma- In 2002, UK-based multinational GSK ceuticals acquired the Hungarian phar- acquired a vaccine production facility near maceutical company Biogal in 1995. Budapest making a strategic investment Today the plant in Debrecen (Eastern of over EUR 130 million. The plant produ- Hungary) is the company’s main centre ces antigens for paediatric combination of manufacturing for the region and vaccines. The facility employs 220 markets outside Europe. The company people. supplies products to 44 countries. Teva Group’s European generics R&D centre HEALTHY was inaugurated in 2009 in Debrecen. In Hungary, Teva operates three production sites and a packaging plant, employing BIOTECH 3,000 people. GEDEON RICHTER SECTOR The nation’s first large-scale phar- maceutical producer, Richter was ungary’s pharmaceutical traditions established in 1901 and remains the and internationally acknowledged national flagship manufacturer. The THOSE largest independent drug maker in Hachievements in chemistry and SANOFI biology serve as the basis of its healthy WHO HAVE CEE, the company operates a highly In 1991, France’s Sanofi acquired biotechnology sector. regarded R&D centre, employing 950 ownership of the traditional Hungarian CHOSEN HUNGARY people. Richter runs joint research Today, the country has over 85 core pharmaceutical manufacturer, Chinoin. The programs with more than 30 leading biotechnology companies French parent has three manufacturing of various sizes focused on biotech R&D university faculties and academic sites in Hungary and also a regional and manufacturing. The majority were EGIS (SERVIER) research institutes. The company is distribution centre, from which products established in 2005-2007, and market their Established in 1912, Egis is one of the also active in original research, which are shipped to 45 countries. Sanofi’s products and services worldwide. Hungary most prominent companies in the is mainly focused on diseases of the Hungarian activity also includes drug has a proven track record in R&D and is a net history of Hungarian pharmaceutical central nervous system. development. The company’s headcount contributor to the global biotech industry. manufacturing. Now owned by in Hungary is around 2,100. France’s Servier, Egis is active in the pharmaceutical value chain from manufacturing through R&D to marketing. The company continues to "With regards to innovation in the pharma sector build on the skills, talents and creativity Hungary is an attractive place and is among the of Hungarian scientists while focusing top 10 countries in Europe in terms of the number its R&D on cardiovascular diseases of conducted clinical trials, bringing 300 million and disorders of the central nervous Euros of investment to the country every year." system. Servier employs a staff of Pierre Faury, General Manager, Sanofi Hungary 3,000 in Hungary. Life Sciences in Hungary 19 "Highly educated professionals, an advantageous LIFE SCIENCES IN HUNGARY geographic setting and a supportive environment for SUCCESS STORIES investment have been the key drivers to make this development in Hungary." Claire Roger, General Manager, GlaxoSmithKline Ltd. RECENT January, 2016 – GlaxoSmithKline has a cutting edge vaccine manufacturing SUCCESS site in Gödöllő. The site was acquired by GSK which then invested heavily to upgrade the STORIES AND facilities and technologies to bring new facilities November, 2014 – online in 2008.
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