Pharmaceutical Sector

Transcription

1 Pharmaceutical Sector May 2009

2 1) Where are we coming from? 2) What are we doing? 3) Pharmaceutical market and policies of this sector 2

3 The country has been growing steadier and faster than the Latin American average GDP Growth: Colombia ( ) % President Uribe Forecasts Col L.A. Col L.A. Latin Focus EIU IMF Source: DANE (National Accounts), DNP, EIU (Market Indicators & Forecasts) Note: * Forecast DNP Last update March 16 3

4 Striking performance in FDI, Exports and foreign visitors US Million President Uribe Exports 2002/2008 Increases 214% US Million FDI 355% Million of visitors Tourism 120% Source: DNP, Central Bank (Banco de la República) Note: * Forecast 4

5 Important results in social indicators President Uribe Unemployment Rate fell by 4.2 points. 02/08 Poverty fell by 13 points Income Distribution GINI (0= equitable distribution; 1=high concentration of income) Source: DNP, Estimates MERPD- ENH and ECH Note: * Forecast 5

6 Market Confidence: recovering our investment grade (soon) Risk Analysis Agency Debt in Foreign Currency Outlook STANDARD & POOR S BB BB+ Moody s Ba2 Ba1 Fitch BB BB+ Source: Standard & Poor s, Moody s, Fitch 6

7 Security has improved along with sustained economic growth The recipe is simple: Democratic Security = Confidence = Investment = Growth March 22 de 2007 In 2008 Investment as proportion of GDP went to 30% GDP grew 3,5% Murders continue to go down 7

8 Three main Colombian s cities safer than Washington D.C. Homicides per inhabitants per year 2007 Source:Crime Observatories 8

9 Violence Levels are decreasing dramatically President Uribe 2002/2008 decreases -44% -85% -50% Source: Min. of Defense 9

10 Market Confidence 10

11 1) Where are we coming from? 2) What are we doing? 3) Pharmaceutical market and policies of this sector 11

12 Trade agenda: Preferential access to 1.2 billion consumers From preferential access to 233 million consumers in 2002 to access to 1,200 million consumers in

13 2002 Investment Agreement Agenda: 19 BIT s with 42 countries, and 21 DAT s with 23 countries Double Taxation Agreements (DTA) Investment Agreements (BIT) Both instruments will be available to all commercial partners

14 Second most business friendly country in Latin America Doing Business Colombi a improve d 26 position s in two years! Two years in a row as the first reformer in Latin America (2009) Country Ranking 2007 Ranking 2009 Chile Colombia México Perú El Salvador Panamá República Dominicana Argentina Costa Rica Brazil Ecuador Venezuela Source: Top reformers report. World Bank 14

15 The most competitive FTZ s in Latin America: 15% income tax and allows sales to the local market Goods 15% corporate income tax No import duties No VAT tax Benefit from international agreements Can also sell in domestic market Investment in millions And Direct Jobs US$ Services Investment in millions And Direct Jobs US$ Agrobusiness Biofuels investment or employment Investment in millions Or Direct Jobs US$

16 56 Free Trade Zones Number of Approved Free Trade Zones New FTZs in Figures Total new Investment (USD Million) 4,668 Total new Direct Jobs 39,620 16

17 Colombia offers legal stability contracts to guarantee investment projects. Conditions Investments over USD 1,500,000 Investor pays 1% premium based on the amount of the investment. Period Up to 20 years maximum. Contract s approve d 41 legal stability contracts, February

18 1) Where are we coming from? 2) What are we doing? 3) Pharmaceutical market and policies of this sector 18

19 Source: Economist Intelligence Unit Health Expenditure is increasing per Colombian ( )

20 Colombia has the 3rd largest health expenditure as percentage of the GDP in Latin America Source: Economist Intelligence Unit

21 Source: World Competitiveness Year Book 2008, IMD Colombia has the largest Public expenditure in Latin America

22 Colombia ranks second in Latin-American infrastructure (2008) Source: World Competitiveness Year Book 2008, IMD

23 Increase in both laboratory sales and profits reflect the potential of the pharmaceutical market Laboratory sales and profits in Colombia (US$ million) Source: BPR Associate

24 Main Colombian Diseases Disease (2006) Cases Rates Malaria (rate per 100,000 habitants of population at risk of malaria) Dengue (rate per 100,000 habitants of puopulation at risk of dengue) 108,432 1, , Tuberculosis (per 100,000 habitants) 10, Tubercolosis con basiloscopia positiva 7, VIH/SIDA (Per habitants) 3, Sifilis congénita (per 1,000 live births) 1, Lepra(Prevalence per 10,000 habitants) Tos ferina (per under 5 yeras old) Meningitis per haemophilus influenzae (per 100,000 habitants) Fiebre amarilla (per 100,000 habitants) Tétanos neonatal ( per 1,000 live births) Rabia humana (Per 100,000 habitants) Source: World Health Organization, Pan American Health Organization, Ministry of Social Protection

25 Colombian environmental laws and compliance do not hinder the competitiveness of business Following Law 788 of 2002: 100% exemption from the income tax for companies that develop new drugs in Colombia, supported by Colciencias a government entity. A deduct tax income of 125% of the value of the investment in scientific or technological development in the taxable period that took place. Source: World Competitiveness Year Book 2008, IMD

26 Intellectual property rights are adequately enforced in Colombia Source: World Competitiveness Year Book 2008, IMD

27 Conclusions Colombian economy ready to receive investment Colombian business environment supported by one of the best legal system in Latin America. Investors receive too many incentives to invest in Colombia. Colombia pay for innovation in science and technological, even more if this innovation is made in drugs for humans. Pharmaceutical sector is growing, which shows a great opportunity to invest in this sector. Colombia has one of the best health system in Latin America

28 Conclusions In the last few years, Colombia has experienced a marked improvement in its macroeconomic performance, internal security and stability for businesses. As a result social indicators have improved dramatically. Colombia has achieved a solid structural growth, based on an increase in the investment rate and higher productivity levels. The country has guaranteed its external funding for 2009 trough multilateral institutions such as IADB, WB and CAF. 28

29 Conclusions Colombia is aggressively negotiating trade and investment agreements expanding its markets and becoming more attractive to investors. The Colombian Government is committed to generating the most favorable conditions for domestic and foreign investment instruments such as the free-trade zones regime and legal stability contracts. 29

30 Investment Promotion Agency: