1. Can Lebanon Compete in the Innovative Biopharmaceutical Sector?
Jeff Kemprecos
Executive Director, Public Policy
MSD
Beirut
July 2017

2. The Prize $100B yearly in global Biopharmaceutical investment
$80B in R&D
$20B in capital improvements
$7-9B in R&D
$1B in capital improvements
80% of investment goes to the most competitive “P-20” countries

3. The Prize The Prize $20B in capital $80B in R&D
The Prize
The Prize
Attracting just 1% of global investment is $1B of FDI in a highly innovative sector of the economy
$20B
in capital
$80B in R&D

4. 20 most competitive countries today, “P-20”
-- 80%of investment goes to top 20 countriesThe findings

5. Newcomer Markets – 2017 Overall Results90 85
Singapore
Though excep,ons exist, biopharma innovators face:
Israel
Risks losing out further due to pricing policies! 80
Taiwan
Strict price regimes & weak reimbursement
Underdeveloped/sluggish regulatory systems
LocalizaLon
Erosion of IPRs
Limited R&D capacity 75
Korea Chile 70
UAE
Mixed condi,ons
Mexico 65
Saudi Arabia
Malaysia 60
India
Turkey 55
China Colombia Brazil
Russia ArgenLna Egypt 50
South Africa
Thailand Indonesia 45
Most likely to
Losing out on investment
Vietnam
secure investment 40

6. Newcomer Markets, Overall Scores – 2017 vs. 2016
Score Change (>2%) vs. 2016
Newcomer markets
2017 Overall Score
Score Change (>2%) vs. 2016
Singapore
87.36
China
58.04
Israel
76.97
Colombia
55.60
Brazil
54.50
Taiwan
76.76
Turkey
54.48
Korea
72.00
Russia
53.68
Chile
69.39
2017 only
ArgenLna
53.40
UAE
64.64
Egypt
53.32
Mexico
63.08
South Africa
53.28
Saudi Arabia
62.60
Thailand
49.64
Malaysia
62.44
2017 only
Indonesia
43.82
India
58.58
Vietnam
43.75
2017 only

7. Realization: Innovation drives healthier & wealthier societies.
Trends
Realization: Innovation drives healthier & wealthier societies.
More than 50 countries have declared aspirations in the life sciences and innovative medicines sector.

8. How have the top “P-20” countries attracted FDI?
How have the top “P-20” countries attracted FDI?
Stable, transparent political system
World-class intellectual property systems
Open market, free of discrimination
Industry & government dialogue on policy
Strong education-private sector links
Favorable taxation
Recognizes and rewards innovation
Efficient, transparent regulatory system
$200B in life
sciences
investment

9. The question is: Do we do enough things well enough to compete?
Trends
No country is perfect
The question is: Do we do enough things well enough to compete?
Software
Hardware

10. Developing a policy framework in Lebanon: Steps to improving competitiveness
Long-term goals established
Current enabling factors identified
Cooperation with industry to build new policies
Policy framework leading to increase in pharmaceutical investment

11. Summary Lebanon can compete in the innovative biopharmaceutical sector
We need a shared vision, strategy & policy road map to drive reforms during
History shows that with the right eco-system, small countries can outperform larger countries