Generic pharmaceuticals

The island’s favourable legal environment for generic pharmaceutical companies has attracted a number of leading companies to migrate to Malta. All these companies were attracted by the Maltese patent law which law allows a company to develop its product in the period until the patent expires. Such provision is known as the Bolar exemption.

The advantage Malta gives to a pharmaceutical company is that in other EU countries where pharmaceutical products are covered by patents a company cannot start developing the generic versions until the original patent has expired. On the other hand, a company based in Malta can beat its competitors based in other countries who will still be restricted in their activities. While it is true that no product based on the same chemical composition can be launched on the market until the first patent expires, the company based in Malta during the time the branded original is under patent has the time to do all the preparatory work on the new product, including the production development and licensing. The company has the possibility to sell the product immediately after the patent in another country expires. Obviously, such company will be at a competitive advantage when compared to other companies based in countries without the Bolar exemption.

Human Resources
The education system provides the industry with highly skilled employees available for the pharmaceutical industry , experienced in using sophisticated machinery, mainly due to the fact that Malta has a strong tradition in healthcare. These employees speak fluent English, and many of them speak other languages. This means that they are capable to deal with scientific documents and laboratory reports which may be necessary during their work.

Attractive Package

Since the pharmaceutical sector is considered as being a priority sector in Malta, various investment promotion mechanisms are available for the industry to flourish. Both the Business Promotion Act and the Malta Enterprise Act provide a number of incentives, amongst which fiscal benefits, custom-built industrial premises at low rates of rent, preferential loan financing, loan guarantees and assistance of up to 80% of the costs required for the employees’ training. Malta also provides with an excellent infrastructure, providing access to markets in both Europe and North Africa having international connections to all major and sea ports in the region. In addition, it provides the industry with a fully developed banking, financial services and professional services sectors.

Please contact us on info@ma-advocates.com for more information in this regard.