Hungary

Location: EU - a common market of more than 500 million people

Ukraine, Russia and the Balkans - market of 210 million consumers

Land: 93,030 km²Population: ~10 million

GDP/capita, at PPP (2015): EUR 23,127/ USD 26,222

Source: Eurostat, OECD

Macroeconomic overview

• EU-member since 2004

• GDP growth (2012): -1.8%, (2015): +2,9%

• Forecast (2016):+ 2,5%, (2017):+ 2,8%

• Export growth (2012): -1,5%, (2015):+ 6,2%

• Industrial production (2012): -1.7%, (2015): +6,5%

• Average gross wage (2012)*: +4,6% (€770.5), (2015):+4,1% (791,9 €)

• Unemployment rate (2012):+10.9%, (2015): +6,1%

• Inflation rate (2012):+ 5.7%, , (2015): -0,1%

• Forecast (2016): +0,5%

• Government balance (2012): -2,3%, (2015):-1,9%

EU

GDP

External trade and industry

Employment and wages

Inflation

Budget balance

Source: National Bank of Hungary, HCSO, Convergence Programme of Hungary 2013-2016

* Exchange rate: 1 EUR = 310,0 HUF

OECD Hungarian National Report 2015

Competitive tax system

• Low corporate income tax:

• 10 % rate for the first HUF 500

million (~ USD 2.3 million) of

the tax base;

• 19% beyond HUF 500 million

• Flat personal income tax: 16%

European

countries(2015)Corporate income tax

France 33.33%

Spain 28.00%

Germany 29.65%

UK 20.00%

Greece 29.00%

Czech Republic 19.00%

Slovakia 22.00%

Poland 19.00%

Hungary 2015 10-19%

Irinyi Plan

Hungarian reindustrialisation and industry diversification program

• motor vehicle manufacturing

• manufacturing of specialized machinery and equipment

• health economy / industry / medical tourism

• food industry

• green economy

• info-communication industry

• defence industry

Industry 4.0 - it is all about information technology

Internet of Things (IoT) power

Hungary intends to be taken part in the development of a

new diagnostical modality based on bioelectronic method

• 4,5% of the Hungarian GDP is generated by the four Hungarian

pharmaceutical companies that have the largest manufacturing base

• 48% of the total Hungarian industrial R&D activity is associated with the

pharmaceutical industry

• On average, 40% of the employees of the industry have higher qualifications

and the number of employees of the sector grew even during the crisis

Source: CONVINCIVE Consulting and Hungarian Biotechnology Association (2014)

Red biotech

clearly dominates in Hungary

>50% of all Hungarian biotech

companies are reported Red Biotech

as their primary area

The 47 red biotech and bioinformatics companies cluster in the major university towns: Budapest, Debrecen, Szeged and Pécs

Biotechnology In Hungary 2012 – Sector Report (Executive Summary)

KEY POINTS

• Less bureaucracy

• Shorter authorisation times

• Vulnerable groups

• Ethical review

• Informed consent

• Publicly accessible EU database on clinical trials

• established traditions in the field of life sciences

• research expertise

• health insurance database

• adequate legal environment

• 6,000 researchers

• 650 academic and research groups

• 150 SMEs

• 409 teams from the pharmaceutical industry

• 25 patient organisations and 17 authorities up until 2014

47 projects were started within the framework of the IMI

Hungary took part in 9 programmes

The largest investments aimed at vaccine developments,

neurodegenerative and autoimmune diseases, as well as diabetes

Target validation and biomarker research

Promotion of innovative clinical trial methodologies

Research and development of innovative medicines

Customised patient-adherence programmes

Analysis of BIG DATA

help to elect patients into

the clinical trials

to find new correlations

and business trends

prevent diseases

biological research

industry trend informations

enviromental research

pharmacogenomics

personalized medicine

HEALTH CARE

INDUSTRY

MANUFACTURERS

Innovation is the driver

• Health Insurance Sector – Opening Up in the Midterm

• Medical Devices

• Potential Targets for Private Healthcare Service Providers

• R&D Incentives in the Pharmaceutical Sector

• 1372 hot springs

• 207 springs with medical water

• 385 thermal and medical baths

• 13 health resorts

• 54 qualified spa hotels

• 70 qualified thermal baths

• 5 medical caves

• 224 certified medical waters

• 5 deposit of therapeutic muds

• 1 mofette

There are Thermal Waters Beneath 80% of its Land

Thank You!

agnes.fenyi@ngm.gov.hu