Biotechnology In Argentina

INVESTMENT OPPORTUNITIES

Biotechnology in Argentina Knowledge + Innovation to meet global market needs



Photo: courtesy of INTI. National Institute of Industrial Technology

Highlights >> FACING A GLOBAL OPPORTUNITY

The global biotechnology market has been growing at a strong rate, driven by constant technological and scientific advances and broadening areas of application. Mainly concentrated in the U.S., the biotechnology industry presents attractive opportunities for those countries with the right set of resources.

>> REMARKABLE DOMESTIC POTENTIAL

Growing private and public R&D activities, a pool of highly qualified human resources in biosciences, and developed pharmaceutical and food & beverage industries put Argentina in a strong position to take advantage of growth in the global biotechnology market.

>> PROMISING PERFORMANCE AND A WIDENING SCOPE

As one of the regional leaders in the biotechnology industry, Argentina’s domestic sales and exports have grown significantly. Mainly focused on agricultural applications, local firms are currently making progress throughout all biotechnology application areas.

>> MEETING GLOBAL DEMANDS

By continuing to embrace biotechnology and its applications, Argentina will be able to meet an increasingly global and sophisticated demand for food and health products while protecting the environment for future generations.

>> CHALLENGES AHEAD

The main challenges for the growing local biotech market include furthering the integration of biotechnology with the overall economy; keeping up with the increasing demand for qualified human resources; increasing R&D capacity; and improving public & private sector coordination.

May 2009



Photo: courtesy of Bio Sidus labs

I. Why Invest in Biotechnology in Argentina?

• HUGE POTENTIAL. Biotechnology consists in the

• COMPETITIVE RESOURCES. The combination of

application of science and technology to living

growing private and public R&D activities, a pool

organisms, biological systems, or derivatives thereof,

of highly qualified human resources in biosciences,

to make or modify products or processes for the

and well-developed pharmaceutical and food and

production of knowledge, goods and services. Modern

beverage industries put Argentina in a privileged

biotechnology can substantially contribute to improve

position to capitalize on existing global opportunities.

human welfare and current living conditions by

In particular, the large number of researchers (highest

delivering essential outputs as pharmaceutical products

per active person in Latin America), over 35 biosciences

or vaccines and increasing both the quantity and quality

research institutes within firms and universities,

of food.

doctoral and postdoctoral biotechnology training institutions, and a leading position in genetically

• A THRIVING GLOBAL INDUSTRY. The global

modified crop use, provide Argentina with strong

biotechnology industry has been growing steadily,

foundations to build a dynamic and sophisticated

at a compound annual growth rate of 13% during

biotechnology industry.

2000-2007. Despite worldwide economic turmoil, the industry sustained its solid performance in 2008,

• PROFITABLE AREAS OF APPLICATION. Modern

growing 12% in revenues to US$89.7 billion. While the

biotechnology has applications in many fields, including

U.S. accounts for over half of global revenues, other

human and animal health, agriculture, fishing and

countries are exhibiting significant growth rates.

forestry, food processing, industrial processing, and

Argentina is among those countries.

natural resource extraction. At the global level, the health sector is the largest, representing almost

• REGIONAL LEADERSHIP. Knowledge being the key component in the biotech industry, Argentina managed

processing segments account for approximately

to leverage its strong research capacity to host and

12%. Argentina has already established competitive

create companies that use or produce biotechnology

advantages in some niches within the industry,

inputs. With over 80 established companies, Argentina

particularly in agricultural, food and health segments.

is the country with the highest amount of biotechnology

The local market is especially focused on the production

companies per capita in Latin America. Domestic

of agricultural inputs, pharmaceutical products, human

firms feature a wide range of activities, from the use

diagnosis products and fine chemicals (amoniacids,

of biotechnological supplies in production processes

pigments, antibiotics and vitamins).

to the manufacture of modern biotechnology products through recombinant DNA techniques. 

two thirds of total revenues. The agriculture & food

II. Industry Structure and Performance STRUCTURE

INDUSTRY SEGMENTS

Diverse and competitive sector. More than 80

A diverse array of products are being produced locally,

firms produce modern biotechnological products locally,

covering several areas of biotechnology applications.

covering a wide range of activities: 29% of firms produce

Agriculture, food processing, human heath and diagnosis,

inoculants, 23% seeds and plant varieties, 12% animal

and animal health are segments in which domestic

health products, 12% food ingredients and 24% human

biotechnology presents attractive competitive advantages.

health products. The sector is composed of a mix of global players and growing domestic companies. Global leaders

Agricultural sector. Within agriculture, biotechnology

such as Bayer CropScience, Dow AgroSciences, Nidera,

has many applications, including genetic modifications

Monsanto and Pioneer are active in the country, and

(GM) of plant varieties, seeds, inoculants, pesticides,

local firms like Bioceres, Biocientífica, Biogénesis-Bagó,

fertilizers, vet products and genetic selection for cattle

BioSidus, Cassará, Indear and Wiener Lab are competitive

breeding. The worldwide performance of GM crops stands

players in diverse segments. Around 80% of firms are

out, increasing its market size 65-fold in 1996-2008 to

domestic small and medium size companies, focused

US$7.5 billion. GM crops currently cover an area of 125

almost exclusively on biotechnological activities.

million hectares in 25 countries in six continents. These figures are expected to double in the next ten years.

INDUSTRY BUSINESS PERFORMANCE GM Crop Area by Country

Sales and exports. Conservative estimations calculate biotechnology annual sales at US$400 million and

China 3% Others 5%

employment in the sector at more than 5,000 workers. The

India 6% Canada 6%

agricultural sector leads the sales by area of application: seeds and plant varieties concentrate 41% of total sales,

Brazil 13%

U.S. 50%

animal health explains 25%, and inoculants add an additional 8%. The food ingredients sector accounts for Argentina 17%

15% of sales and human health for the remaining 11%. Biotechnology exports amount to over US$80 million

Source: International Service for the Acquisition of Agri-biotech Applications (ISAAA)

(60% in agro related activities and 24% in human health),

Endowed with vast extensions of arable land (32 million

resulting in a biotech trade surplus of over US$50 million.

hectares), Argentina embraced, at an early stage, the use

Seeds and plants and human health explain together 72%

and generation of genetically modified crops, leading to

of total employment, distributed in almost identical shares.

an agricultural revolution that increased both the size of

Private R&D explains over 5% of sales, reaching some

the cultivated land and the yields per hectare of its main

US$20 million in total, with the highest ratio seen in human

crops. Record-high levels of agricultural production

health (15%). The number of patents presented to the U.S.

are reached year after year. Argentina is today a leading

Patent and Trademark Office (USPTO) ant the European

country in adopting biotech crops: it has the highest

Patent Office (EPO) by the Argentine biotech sector

percentage of arable land planted with GM crops (65%),

amounts to 53 and 12 per year in 2001-2007 respectively.

it is the second largest producer of GM crops (21 million

Biotechnology by Segment Share of total firms, sales, employment and exports

10

. Source: Bisang, Gutman, Lavarello, Sztulwark and Diaz (2006)

Source: CONABIA and SAGPYA

Total soybean area

9

8

/0 08

20

/0

/0 06

07 20

20

20

05

/0

7

6

4 20

04

/0

3

/0 03

2

/0

5

20

Human Health

02

Food Ingredients

20

Animal Health

96

Seeds & Plants

19

Inoculants

1

Exports

/0

Employment

01

Sales

20

2.000 20

4

/9

Firms

8

30

4.000

0

0%

8

/0

0

40

6.000

00



20

6

50 %

8.000

9

0%

60

10.000

/0

1

0

99



19

0%

70

12.000

8

10

/9

11

80

14.000

98

1

90

16.000

19



10 0

18.000

7

60%

1

20.000

/9

1



97

6

1

19

11



80%

In thousand of hectares

100%

Soybean Area and GM Soybean Evolution

GM soybean/ Total soybean



hectares; 17% of world GM area) and enjoys top-notch

DNA technology, including human erythropoietin, human

productivity in soy, corn and their derivatives. Some

interferons, colony-stimulating factors and human growth

companies also produce bioinsecticides and pulse crop

hormone. These products are already sold in Asia, the

inoculants, while others use seedling micropropagation

Middle East and Latin America. Argentina is, along

and vegetable tissue culturing technologies.

with the U.S., Australia, Korea and New Zealand, one of the few countries in the world with the technology of

Food Processing. Argentina counts with a large and

pharmaceutical diary. It is also one of nine countries with

highly competitive food and beverage industry, with

capacity to clone animals successfully. BioSidus is one

total sales of US$53 billion (31% of total manufacturing

of the sector’s leaders. In the field of diagnosis, there are

production sales) and exports of US$21 billion (30% of

products and developments using recombinant protein

total manufacturing production exports). Significant

and monoclonal antibodies to detect infectious diseases,

applications of biotechnology are being developed

such as Chagas’ Disease, Cholera, Hepatitis B and C,

and implemented in this field. Biotechnology in food

and HIV. There is also capacity for molecular oncology,

processing is focused on the production of high-fructose

leukocyte differentiation antigens, genetic predisposition to

corn syrup and its intermediate product glucose syrup.

hereditary diseases, and filiations and personal identity.

Five companies stand out in this segment. While three of them are domestically-owned (Alimentaria San Luis, Arcor and Georgalos), the other two have been acquired by global food companies (Industrias de Maíz and Refinerías de Maíz). Two leaders in the dairy sector (SanCor and

Sales of Domestic Pharmaceutical Production (in US$ million) 2.500 2.000

La Serenísima-Danone) have recently launched their

1.500

probiotic milk lines by incorporating Lactobacillus and

1.000

Bifidobacterium strains that, as probiotic species, favor the intestinal microbacterial ecosystem.

Exports Internal market

500 0

2002

2003

2004

2005

2006

2007

2008

Source: National Institute of Statistics and Census (INDEC)

Food & Beverages: Production and Exports (in US$ million) 60.000 50.000

Animal health. The strong local pharmaceutical

Production Exports

tradition and the knowledge generation in related areas

40.000

allowed for the production of transgenic cattle and animal

30.000

vaccines. Important progress was made in the areas of

20.000

animal food and health due to the active involvement

10.000

of national and multinational companies present in

-

2002

2003

2004

2005

2006

2007

2008

Source: Center of Studies for Production (CEP)

Argentina. A salient case in the area of animal vaccines is the production of the vaccine against bovine neonatal diarrhea caused by rotavirus. This vaccine was the result

Human Health and Diagnosis. Applied biotechnology’s

of a joint project between the Center for Animal Virology

greatest impact in terms of industry has occurred in

(CEVAN) and the National Council for Scientific and

pharmaceuticals, where a long-standing tradition of

Technical Research (CONICET). Other examples of public-

biomedicine combines with a large domestic industry.

private collaboration include the vaccines developed by

With local pharmaceutical production growing at an

the Virology Lab of the National Institute for Agricultural

annual rate of 16% between 2002 and 2008, investments

Technology (INTA) that were produced and marketed

have increased 10 times during this period. Pharmaceutical

by Biogénesis and San Jorge-Bagó labs. This sector also

domestic companies have the capacity to develop new

produces and markets vaccines against foot-and-mouth

products covering all stages from product innovation

disease and exports vaccines for salmons. Vilmax, a leading

through commercialization, including pilot plant tests,

company in the production of colorants, manufactures

manufacturing, clinical trials and regulatory authority

specific colorants to purify proteins.

approval. Most products result from applying Recombinant 

CASE STUDY

Bio Sidus: translating scientific breakthroughs into products for a better quality of life BioSidus, under the guidance of the pharmaceutical firm Sidus, has become a leading organization in the biotechnological field, thanks to the efficient integration of both enterprise and technology. By the end of the 1970s, the managing staff of “Instituto Sidus”, conscious of the central role of modern biotechnologies, decided to enter in the biotechnological research field. In 1980, Sidus’ Area of Biotechnology was created, under Sidus’ entrepreneurial support and the scientific concurrence of an important group of professionals from the University of Buenos Aires. The goals successfully achieved in technological and manufacturing developments led Sidus in 1983 to create BioSidus as an organically individual enterprise, which by 1990 had rolled out its first biogeneric product: erythropoietin. Almost 20 years later, BioSidus commercializes locally and abroad seven recombinant proteins for use in human health: erythropoietin, interferon alfa 2a and 2b, interferon beta 1a, filgrastim, lenograstim and somatropin. Additionally, BioSidus counts with a pipeline of multiple biosimilar candidates in different stages of development. Lead products in the pipeline include PTH 1-34, interferon beta 1b and streptokinase. Over 75% of BioSidus revenues come from exports to almost 30 countries in Latin America, Middle East, Eastern Europe and Asia Pacific (including India, Thailand and Lebanon) holding a significant market share in these territories. Furthermore, the company is filing for regulatory approval to distribute its products in 10 additional countries through partnerships with local pharmaceutical firms. Its recently launched product, Interferon beta 1a, is rapidly gaining market presence in different countries. In addition, the company is taking steps to prepare for its eventual commercialization in developed countries. To achieve this goal, BioSidus is in the process of upgrading its manufacturing processes and refurbishing a new facility in line with U.S. FDA and EMEA regulatory standards. To accomplish this, BioSidus has entered into a strategic association with an U.S. based firm to distribute its current product portfolio in the U.S.. With significant investments in R&D, BioSidus activities include the development of expression systems to produce, formulate and clinically test recombinant proteins for human health. The company’s R&D efforts focused on innovative transgenic biopharmaceutical manufacturing merit special mention. BioSidus has built up a pharmaceutical dairy comprised of a herd of 33 cloned transgenic cattle, including twelve cows producing biopharmaceutical grade recombinant human growth hormone in their milk and seven bulls

to ensure the perpetuity of the transgenic lineage. Human growth hormone obtained from the milk of these transgenic cows has already been tested for bioequivalence against the bacterial-derived reference product and is about to start efficiency clinical trials. The production of recombinant human proteins in the milk of transgenic cows is expected to be a highly efficient and cost-effective method compared to more traditional manufacturing techniques, with the yield from only a small number of transgenic cows meeting market demand for many medical applications. Additionally, BioSidus has developed lineages of transgenic cows to produce bovine growth hormone for veterinary use. However, the most ambitious target in this technological platform is the development of transgenic cattle for human insulin precursor. To this day, eight cloned transgenic cows were born which will be induced to lactation in the coming months to assess presence of human insulin precursor in their milk. As from this milk, the human insulin precursor will be purified to homogeneity and submitted to an enzymatic cleavage to recover biopharmaceutical degree human insulin. This will be of special significance because it will allow large quantities of product at an affordable cost to meet the increasing demand of insulin to treat the growing population of diabetes patients. Ongoing projects also include gene therapy targeting angiogenesis of ischemic heart tissue. BioSidus has developed and produced pharmaceutical grade naked plasmid DNA codifying for the human protein vascular endothelial growth factor and has assessed through preclinical testing in laboratory animals that its injection into the cardiac muscle resulted in increased growth of new blood vessels as well as in muscle regeneration. These findings led to conduction of Phase I clinical studies currently underway with promising results. Phase II clinical trials are set to start in 2009. In collaboration with the Argentine Dirección Nacional del Antártico, research has been conducted aimed at the isolation and characterization of certain microorganisms from the Antarctic territory that are particularly adapted to extreme temperature. A novel species has been isolated and identified - Bizionia argentinensis, and its full genome has been sequenced. In this sense, BioSidus is once again a pioneer in genomics in Argentina since this is the first national experience of integral sequencing of a microorganism genome. The genome is currently under analysis seeking for genes that encode for enzymes active at cold temperature. There is a great potential for industrial applications of these “cold enzymes” in the food, textile and laundry industries, among others.



III. Foundation for Success LOCAL SKILLS AND TALENT

financed courses for more than 2,400 students from

Qualified human resources. Developing

Argentina, Brazil, Uruguay and Paraguay

biotechnology requires highly qualified human resources. Argentina is the country with the highest number of researchers per active person in Latin America (3.4/1,000

RESEARCH AND DEVELOPMENT

active) and has internationally renowned scientific

Research institutes. Research institutes from

skills and a pioneering spirit. In natural sciences, this

universities and companies carry out R&D activities in

tradition is evidenced by three Nobel Prizes awardees (B.

a wide range of disciplines and specialties in Argentina.

Houssay, L. Leloir and C. Milstein). In total, over 59.000

Almost 70 of these centers (41 companies and 27 research

researchers and scholars undertake research activities

groups) are focused on agricultural issues and 37 are

both in the public and private sectors. These talents are

dedicated to biosciences. Specifically, 28 are devoted

also growing thanks to the Program RAICES, a strategic

to biotechnology research, including public centers,

project from the Ministry of Science and Technology

university centers and private foundations.

that promotes and facilitates the return of Argentine distinguished researchers working abroad. In the last few

Regional hubs and business incubators. A recent

years more than 600 professionals have been relocated in

trend has been the emergence and consolidation

local research institutions.

of technological hubs and business incubators in different knowledge-intensive fields. A highlight within agricultural research is the Rosario biotechnological

researchers and technicians undertake scientific

hub in the province of Santa Fe. Comprised of several

research in biosciences. Specifically, 241 scientists and

institutions mainly devoted to vegetal biotechnology,

101 technicians are involved in biotechnological research

the hub brings together more than 400 professionals,

lines. More than 30 universities and higher education

constituting the main biotechnological pole in Latin

institutions offer undergraduate and graduate careers

America. The Argentine-Spanish Center for Plant

in biotechnology. Scientific researchers continue their

Genomics (CEBIGEVE) and the National Institute for

education through doctoral and postdoctoral scholarships

Agro-biotechnology (INDEAR) are two of its members.

sponsored by CONICET. Additionally, courses for

CEBIGEVE is an R&D center resulting from the scientific

researchers coming from the public and private

cooperation between Spain and Argentina. INDEAR, in

sector are offered at the Argentine-Brazilian School of

turn, results from the partnership between the private

Biotechnology (EABBIO). From 1987 to 2003, EABBIO

firms Bioceres and BioSidus and the CONICET.

Photo: courtesy of Biogénsesis Bagó

Specialized research and training. Today, 1,350



Photo: courtesy of Roemmers labs

COMMUNITY

INDUSTRY NETWORKING

Public perception. Argentina has a positive public

There are several organizations that promote

perception of biotech products and a good acceptance

biotechnology and communicate the sector´s news

of transgenic organisms. The first genetically-modified

and achievements in Argentina:

crop in Argentina’s agriculture was glyphosate-tolerant soybean, approved in 1996. Since then, several crops

• FAB (Argentine Forum on Biotechnology):

and their features have been tested in the field, and

with 20 years of continuous experience, the

this type of technology has spread rapidly. In the last

organization promotes biotechnology and

agricultural campaign, they accounted for over 90% of

cooperation and collaboration among researchers,

soybean planted area, around 70% of corn planted area,

companies and the government to fully develop

and approximately 60% of the cotton planted area. At the

biotechnology.

government level, Argentina supports biotechnological undertakings, leveraging communication and information, and improving controls to provide security to consumers.

• BIOTECSUR: a biotechnology platform that brings together the private, academic and public sectors from the four countries of MERCOSUR and works to establish a common long-term vision for the development and application of new technologies in the region.

Sowed Area by Type of Crop (in thousands of hectares)

• ASA (Argentine Association of Seed Traders):

GMO’s Conventional

30,000

it has a proactive attitude to spread biotechnology

25,000

through the “Por qué Biotecnología” (Why

20,000

Biotechnology?) program.

15,000 10,000

• RedBio (reporting to Food and Agriculture

5,000

Organization): responsible for a communication 8 /0

/0

07 20

06 20

20

05

/0

7

6

5

4

/0 20

03 20

04

/0

3

2

/0 02

20

20

01

/0

/0

1

0

00 20

19

99

/0

/9

8 19

98

/9

7 /9 96

97 19

19

9

-

Source: Argentine Association of Seed Traders (ASA) and Secretariat of Agriculture, Livestock, fishing and Food (SAGPYA).

campaign at primary, secondary and tertiary educational levels. 

Photo: courtesy of INTI. National Institute of Industrial Technology

IV. Policy Initiatives

BUSINESS PROMOTION

investment, and biotechnology has always been a priority

Incentives. Government, private companies and

topic during the last decades. These tools have been

research institutions are working together in the

deepened since the creation in 2007 of the Ministry

promotion of modern biotechnology. Law 26,270

of Science and Technology. Within the Ministry, the

sets promotional measures that are related to human

National Agency for Scientific and Technological

resources and capital expenditures during R&D and

Promotion (ANPCyT) encourages scientific, technological

production of technologies applicable to several

and innovation-related activities with resources coming

productive areas. The law’s main benefits, which are in

from contributions from the national budget and the

process of being regulated by the technical authorities,

Inter-American Development Bank (IDB). The two

include accelerated amortization of the income tax,

main Agency funds are the Fund for Scientific and

early reimbursement of Value Added Tax, and tax credit

Technological Research (FONCyT) and the Argentine

bonds for contributions to the social security and services

Technology Fund (FONTAR).

purchased from government-owned research institutes. It also establishes the development of a special fund for new undertakings. Innovation resulting from the benefits of the scheme shall be, in the first place, patented by the relevant domestic patent offices. Venture capital. Government is increasingly involved in the promotion and development of venture capital funds for technology-based companies in Argentina. The Ministry of Science and Technology has put in place the Program CREARCIT to encourage the growth and creation of innovative firms in all technological fields

National Agency for Scientific and Technological Promotion (ANPCyT) Fund for Scientific and Technological Research (FONCYT): Supports research projects targeted at generating new scientific and technological knowledge. Promotion and financing instruments are awarded, in all cases, through public bids. The FONCyT has sponsored an important number of projects in the area of biotechnology between 2003 and 2008, for over US$37 million.

through venture capital investment.

SCIENTIFIC PROMOTION Funds for R&D. The national government has implemented several programs and instruments that promote and facilitate basic research and technological 10

Argentine Technology Fund (FONTAR): Supports projects targeted at improving the private sector productivity on the basis of technological innovation. There are various financing instruments granted through public bids or permanent window. The FONTAR has approved biotechnological projects for over US$15 million in 2003-2006.

REGULATORY FRAMEWORK

Promoting and protecting health. The National

Environmental and health safety. In Argentina,

Administration of Drugs, Foods and Medical Technology

GMOs are evaluated before these products are marketed.

(ANMAT) promotes and protects human health by

Since 1992, 400 field trials for different transformation

assuring the quality and efficacy of medical products,

events have been assessed and authorized. The

food and domestic-use products, medical and diagnosis

evaluation process includes three steps. First, the

devices. Since 1992, the Ministry of Health is in charge of

National Advisory Committee for Agricultural

providing authorization for release to the market.

Biotechnology (CONABIA) evaluates the likely impact on the agricultural ecosystem, comparing potential

Intellectual Property Rights. As a signatory of the

environmental consequences with those of conventional

Trade-Related Aspects of Intellectual Property Rights

plants, initially through experimental release and then

agreement (TRIPS), Argentina provides an effective

more extensive release into the environment. Second,

patent protection system, including pharmaceutical

the National Service of Agricultural and Food Health

products. The National Institute of Industrial Property

and Quality (SENASA) conducts a food safety evaluation.

(INPI) made significant progress in reducing its patent

Third, the National Direction for Agricultural Food

backlog, including the implementation of fast-track

Markets (DNMA) makes an evaluation of potential

procedures and a one-time opportunity in 2005 for

commercial impact by analyzing the status of the GM

companies to prioritize their patent applications before

product under study in the destination markets in terms

INPI. FONTAR offers subsidies to SMEs to apply for

of whether the product has been approved or not and, as

patents both locally and abroad.

a result, whether the addition of a GM crop to Argentina’s exports might represent a potential barrier to access these markets. To date, 10 GM crop varieties have been

Photo: courtesy of Biogénsesis Bagó

authorized for sale.

11

V. Main Challenges

Industry players and government agencies face key challenges to sustain growth and consolidate the sector’s competitiveness. In themselves, these challenges present attractive opportunities for the industry and Argentina. • Increase the availability of qualified human resources: an increasing domestic and international demand for Argentine biotech products will require expanding the current R&D capacity in human resources and facilities on which Argentina sustains its competitive advantage. • Consolidate and expand its leadership in the use and development of GM crops: Argentina’s substantial use of GM crops presents a vast area of application for biotechnology, which must be consolidated as a driver for local industry growth. • Promote and foster the integration of biotechnology research centers with companies: the adequate institutional processes must be developed to further close the gap between research in biotechnology and its technology transfer to the demanding industries. • Establish efficient interaction mechanisms between the public and private sectors: achieving a balanced growth within the industry will require strengthening the strategic cooperation among firms and government agencies. • Develop and provide biotechnological solutions to regional economic activities: regional activities like wine and fruit production could surely benefit from the application of new biotechnologies. OUR CHALLENGES ARE YOUR OPPORTUNITIES.

12

Photo: courtesy of INTI. National Institute of Industrial Technology

SOURCES: The trends, data and figures included in this material were elaborated by ProsperAr based on information provided by: Argentine Association of Seed Traders / Argentine Forum on Biotechnology (FAB) / BiotecSur / Bisang, Campi and Cesa, “Biotecnología y desarrollo”, CEPAL, 2009 / Bisang, Gutman, Lavarello, Sztulwark and Diaz (comp.) “Biotecnología y desarrollo. Un modelo para armar”, UNGS-Prometeo, Buenos Aires, 2006 / Center of Studies for Production (CEP) / Ernst & Young, Beyond Borders: Global Biotechnology Report 2009 / ISAAA Report

on Global Status of Biotech/GM Crops, 2008 / Ministry of Science and Technology (MINCYT) / National Institute of Statistics and Census (INDEC) / National Observatory for Science Technology and Innovation, Strategic Plan, 2005 / OECD, Biotechnology Statistics, 2006 / Sánchez, Rozemberg, Butler and Rufo, “The emergence of new successful export activities in Argentina: self-discovery, knowledge niches, or barriers to riches?”, IDB, 2008 / Secretariat of Agriculture, Livestock, fishing and Food (SAGPYA).

The information provided through this brochure does not in any way constitute legal or professional advice. ProsperAr (Agencia Nacional de Desarrollo de Inversiones) reserves the right to revise, amend, alter or delete the information provided herein at any time and in no way be held responsible or liable in respect of any such revisions, amendments, alterations or deletions. Cover photo: courtesy of Roemmers labs.

13

Argentina at a glance Country profile Official name

República Argentina

Capital city

Buenos Aires

Main cities

Córdoba, La Plata, Mar del Plata, Mendoza, Rosario

Surface area 2.7 million square kilometers Population 40.6 million inhabitants Population growth

1.0% per year

Adult literacy rate

98%

Life expectancy at birth 75 years GDP per capita (PPP)

US$ 14,413

Currency

Argentine peso ($)

Form of government

Federal Presidential Republic

Political division 23 autonomous provinces and the Autonomous City of Buenos Aires Time zone

GMT-03:00

Official language

Spanish

Main Economic Indicators 2003 2004 2005 2006 2007 2008 GDP growth rate (annual %)

8.8%

9.0%

9.2%

8.5%

8.7% 7.0%

GDP (PPP) (millions of US$) 333,399 373,041 419,568 469,750 524,140 572,860 GDP (millions of US$)

128,078

152,158

181,967 212,868 260,682 328,502

Exports of goods and services (millions of US$) 34,439 39,864 47,024 54,547

66,088

82,608

Imports of goods and services (millions of US$)

18,827 27,930 34,939 41,120 53,353

67,492

Balance of trade of goods and services (millions of US$)

15,612

11,934

12,085

15,115

Trade surplus (% of GDP)

12.2% 7.8%

6.6%

Current account surplus (% of GDP)

13,427

12,735

6.3% 4.9% 4.6%

6.4% 2.1% 2.9% 3.6% 2.7% 2.3%

Primary fiscal surplus (% of GDP) 2.3% 3.9% 3.7% 3.5% 3.2% 3.1% Gross capital formation (% of GDP, constant prices)

14.3%

17.7%

19.8% 21.6% 22.6% 23.0%

Gross national savings (% of GDP, current prices)

19.6% 20.6% 23.7% 26.4% 26.6% 26.7%E

Foreign direct investment (millions of US$)

1,652 4,125 5,265 5,537

6,473 7,979

Exchange rate ($/US$) 2.95 2.94 2.92 3.07 3.12 3.16 Foreign reserves (millions of US$)

14,119

Unemployment rate (% of EAP)

17.3%

19,646 28,077 32,037 46,176 46,386 13.6%

11.6%

10.2%

8.5% 7.9%

Source: ProsperAr based on data provided by the Argentine National Institute of Statistics and Census, the Central Bank’s Market Expectations Survey (REM), the International Monetary Fund and the United Nations Conference on Trade and Development (as of April 30, 2009).

14

ProsperAr is Argentina’s National Investment Development Agency Our mission is to develop direct foreign and domestic investment to contribute to Argentina’s competitiveness and sustainable development. ProsperAr’s four main objectives are:

Provide services to investors ProsperAr provides investors with personalized professional services throughout the investment process, from initial advisory services to investment facilitation and aftercare. The Agency’s team assesses on investment projects, responds to queries from investors and provides key business information. Leveraging the Agency’s cooperative relationships with different government bodies, ProsperAr’s integral services offer investors a unified one-stop support system.

Attract and generate investment ProsperAr works in the promotion, attraction and expansion of both domestic and foreign investment. We identify investment and innovation opportunities in high growth sectors, communicating them to national and overseas investors through international missions, conferences, meetings and publications. We work to build relationships that enable multinational companies to take advantage of local, regional and global opportunities. We also encourage domestic firms to expand and develop their businesses.

Boost the Investment Environment ProsperAr works to strengthen Argentina’s investment environment. We interact with local and multinational companies, as well as potential investors, identifying and removing possible obstacles to doing business in Argentina. Through active dialogue with the private sector, and in coordination with other government departments, we advocate for the formulation of policies and programs to optimize the investment and innovation environment.

Promote the internationalization of local companies ProsperAr promotes the growth and internationalization of Argentine firms. Fostering local vocation for innovation and entrepreneurship and promoting overall competitiveness are key aspects of the Agency’s strategy. Two programs “Entreprenuer Development” and “Pioneers” are in place to strengthen local companies’ critical capacities in different growth phases. ProsperAr also assists international companies to invest in and/or work with their local counterparts to form global joint ventures. ProsperAr is your strategic partner to invest and prosper in Argentina.

What ProsperAr can do for you: >> Provide timely and relevant information on business sectors and geographical locations in Argentina. >> Help identify investment and innovation opportunities in strategic sectors. >> Troubleshoot red tape and obstacles; facilitate the investment process and doing business in Argentina. >> Assist in building partnerships between foreign investors and local companies.

15

To learn more about how investing in BIOTECHNOLOGY in Argentina can benefit you, please contact us:

www.prosperar.gov.ar [email protected] +54 11 4328 9510