Winning Formula
A unique legal framework, solid incentives and excellent human resources are contributing to Malta’s burgeoning reputation as the ideal location for pharmaceutical manufacturing. One of the most recent manufacturing sectors in Malta, pharmaceuticals is also one of the island’s greatest success stories. Today’s thriving generics pharmaceutical industry is just over five years old, yet already employs well over 500 people and exports products worth over €200 million. Attracted primarily by the island’s legal framework that allows the development of generic drugs in advance of patent expiry, companies migrating to Malta also benefit from a well-stocked pool of qualified personnel, a modern infrastructure, EU membership and direct access to markets in mainland Europe and North Africa.
Background in Medicine
Malta claims a long tradition serving Europe’s health and pharmaceutical sectors: the hospital built in 1574 by the Knights of St John was considered the most advanced in Europe in its time, and the island’s history shows centuries of dedication to healthcare. Today’s pharmaceutical industry, mainly composed of generics manufacturers, producers of active pharmaceutical ingredients and producers of healthcare products and services, continues this tradition of service: generics drugs, cued by observers to be the saving of Europe’s costly national health services, provide a cheaper alternative to branded pharmaceuticals, at exactly the same level of quality.
Malta’s Unique Selling Points
International companies investing in Malta are making their decisions based on the solid competitive advantages the island’s unique blend of legislation affords them. Since Malta falls outside the patent jurisdiction of a number of pharmaceutical products, Maltese patent law can allow firms to experiment on patented drugs before the patent expires, a provision known as the Bolar exemption. This is of vital importance to generics manufacturers. It allows them to complete all preparatory work on a new product – including production development and licensing – while the branded original is still under patent. They will then be ready to market it immediately when the patent expires, gaining up to a year on manufacturers in countries without the Bolar exemption.
Qualified Manpower
Malta’s strong tradition in healthcare means a steady stream of university educated chemistry graduates are available to the pharmaceutical industry, as well as a selection of highly-trained personnel, experienced in using sophisticated, high-precision machinery. The fact that all staff are multilingual, usually speaking fluent English as well as one other European language, means that local personnel are able to handle scientific document writing and laboratory reports to the standards required by the industry.
Attractive Package
With the pharmaceutical sector being classified as a priority sector for the country, Malta’s investment promotion mechanisms, the Business Promotion Act and the new Malta Enterprise Act, offer an attractive package of incentives to investors, including fiscal benefits, the provision of custom-built industrial premises at low rates of rent, preferential loan financing, loan guarantees and assistance of up to 80% of the costs involved in training of employees. In addition to this, investors also benefit from Malta’s excellent overall infrastructure, with international connections to all major air and sea ports in the region giving access to markets in both Europe and North Africa, as well as the fully developed banking, financial services and professional services sectors.
Ideal Conditions
As the sector continues to grow, it is clear that there is a self-sustaining cluster on the make. This in itself is enough to attract more operations and Malta, just over half a decade after the first big company set up operations on the island, is now automatically put on a shortlist by companies in the sector. The legal framework, incentives offered and quality of manpower available are proving to be Malta’s winning formula, and the sector is tagged for long-term expansion and growth.
Source: Country Profiler - Business & Investment Malta 2007
Updated: December 2007
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