Pharmaceutical Executive Europe - March 2008 - (Page 25) Pharmaceutical Executive Europe March 2008 Special Report 25 years. The industry spent €81.5 million in capital investments up to 2006, and was projected to invest €128.2 million by 2010, while its turnover — which stood at €81.5 million in 2006 — is expected to reach almost €186.4 million by 2010. Highly qualified and motivated staff are in plentiful supply in Malta. Academically, the University of Malta has more than 500 graduates each year in the medical and pharmaceutical fields, and is preparing to launch a post-graduate QP qualification programme. The Malta College of Arts, Science and Technology (MCAST), in collaboration with the Malta Laboratories Association and industry, has introduced a Higher National Diploma (HND) course for Laboratory Technicians. This extensive training continues outside of the classroom and into the workplace. According to Sergio Vella, managing director of Actavis Malta, the company, which has increased its work volume in Malta by 120% in the last two years, invests €200 000 per year on staff training; new employees receive continuous training for their first three months at the company. Although Malta’s salaries and wages are not quite so low as in some other new EU member states,1 social costs — contained at 10% of gross wages — more than compensate for this. Despite not being the official first national language, the Maltese population’s fluency in English is indisputable. Having only gained independence from Britain in 1964 and remaining a popular tourist destination for Britons abroad, Maltese society is saturated with English — many street names and signs are in English, as are several national newspapers. English is spoken almost universally and, amongst many young people, is a first language. Summary The amalgamation of low personnel costs, a highly-skilled, English speaking workforce, and adherence to operational GMP guidelines within an EU member state that is close to the markets of North Africa (and, therefore, the sub-Saharan region) and the Middle East makes Malta an attractive location for companies looking to restrict costs and expand operations without sacrificing manufacturing integrity. ■ Footnote 1. The average annual labour cost is €11000 for technical staff and €18000 for professional staff. (Source for figures: Malta Enterprise). LEGISLATIVE ADVANTAGES Malta’s Business Promotion Act (2000) classifies pharma as a “priority” sector for the country. This enables companies to qualify for the full package of incentives available, including: • Reduced rates of income tax (as low as 5%) on company profits. • Tax credits of up to 50% on all qualifying expenditure on capital investments. • Low interest (less than 2%) loan financing and loan guarantees. • Financial assistance for training of employees up to 80% of costs involved. • Provision of industrial buildings (at the required pharma standard) at competitive rates of rent. “Malta has adopted the inward processing relief (IPR) procedure on imports. IPR provides relief from duties in order to promote exports from the European Community, thus assisting community processors to compete on an equal footing in the world market. Duty is relieved on imports on non-EC goods, which are processed in the Community and re-exported. Processing can be anything from re-packing or sorting goods to the most complicated manufacturing. Relief can also be obtained on IPR goods received from another approved trader in Malta or another EU member state,” says Malta Enterprise. CASE STUDY: AUROBINDO Aurobindo Pharma recently demonstrated its confidence in Malta as a gateway to Europe. The Indian API manufacturing company is opening a plant in Hal Far; the area houses the majority of the Maltese pharmaceutical sector and is where the Malta Pharma Park will be located. Aurobindo plans to commence service operations in the middle of this year, to be followed at a later date by manufacturing operations. The company intends to expand its premises by 2010. Aurobindo vice president Venulopalan Muralidharan says, “We had great support from the Government of Malta and Malta Enterprise. We have a determination to succeed, contributing towards Maltese industry and the economy in the process.” Why did Aurobindo choose Malta for its new location? Mr Muralidharan cited the islands’ “capable and flexible” English speaking workforce, and the fiscal incentives, especially in relation to taxation. Aurobindo is a global operator with a turnover last year of $0.5 billion. It has 11 subsidiary companies and a presence in 100 countries. Malta will serve as the company’s hub for European markets. The firm is to invest €10 million in the production of pharma finished formulations and the provision of services including lab testing, quality assurance and the testing of pharma products for quality release on the EU market. It expects to reach a sales figure of €26 million in its fifth year. http://www.um.edu.mt/ http://www.maltaenterprise.com/ http://docs.justice.gov.mt/lom/legislation/english/leg/vol_7/chapt325.pdf
Table of Contents Feed for the Digital Edition of Pharmaceutical Executive Europe - March 2008 Pharmaceutical Executive Europe - March 2008 Contents From the Editor News and Analysis Brussels Report Calendar The Next Wave of Pharma Talent The New World Order Share of Voice to Share of Care Notes on a Meeting The Malta Story Motivation Across Borders The Mix No GUTs, No Global Green is Good Last Word Pharmaceutical Executive Europe - March 2008 Pharmaceutical Executive Europe - March 2008 - Pharmaceutical Executive Europe - March 2008 (Page 1) Pharmaceutical Executive Europe - March 2008 - Pharmaceutical Executive Europe - March 2008 (Page 2) Pharmaceutical Executive Europe - March 2008 - Contents (Page 3) Pharmaceutical Executive Europe - March 2008 - From the Editor (Page 4) Pharmaceutical Executive Europe - March 2008 - From the Editor (Page 5) Pharmaceutical Executive Europe - March 2008 - News and Analysis (Page 6) Pharmaceutical Executive Europe - March 2008 - News and Analysis (Page 7) Pharmaceutical Executive Europe - March 2008 - Brussels Report (Page 8) Pharmaceutical Executive Europe - March 2008 - Brussels Report (Page 9) Pharmaceutical Executive Europe - March 2008 - Calendar (Page 10) Pharmaceutical Executive Europe - March 2008 - Calendar (Page 11) Pharmaceutical Executive Europe - March 2008 - The Next Wave of Pharma Talent (Page 12) Pharmaceutical Executive Europe - March 2008 - The Next Wave of Pharma Talent (Page 13) Pharmaceutical Executive Europe - March 2008 - The Next Wave of Pharma Talent (Page 14) Pharmaceutical Executive Europe - March 2008 - The New World Order (Page 15) Pharmaceutical Executive Europe - March 2008 - The New World Order (Page 16) Pharmaceutical Executive Europe - March 2008 - The New World Order (Page 17) Pharmaceutical Executive Europe - March 2008 - Share of Voice to Share of Care (Page 18) Pharmaceutical Executive Europe - March 2008 - Share of Voice to Share of Care (Page 19) Pharmaceutical Executive Europe - March 2008 - Share of Voice to Share of Care (Page 20) Pharmaceutical Executive Europe - March 2008 - Notes on a Meeting (Page 21) Pharmaceutical Executive Europe - March 2008 - Notes on a Meeting (Page 22) Pharmaceutical Executive Europe - March 2008 - Notes on a Meeting (Page 23) Pharmaceutical Executive Europe - March 2008 - The Malta Story (Page 24) Pharmaceutical Executive Europe - March 2008 - The Malta Story (Page 25) Pharmaceutical Executive Europe - March 2008 - The Mix (Page 26) Pharmaceutical Executive Europe - March 2008 - No GUTs, No Global (Page 27) Pharmaceutical Executive Europe - March 2008 - No GUTs, No Global (Page 28) Pharmaceutical Executive Europe - March 2008 - No GUTs, No Global (Page 29) Pharmaceutical Executive Europe - March 2008 - Last Word (Page 30)
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