Biotechnology in ArgentinaKnowledge + Innovation to meet global market needs

INVESTMENT OPPORTUNITIES

�

Phot

o: c

ourt

esy

of IN

TI. N

atio

nal I

nsti

tute

of

Indu

stri

al T

echn

olog

y

�

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 �009

�

I. Why Invest in Biotechnology in Argentina?

• COMPETITIVE RESOURCES. The combination of

growing private and public R&D activities, a pool

of highly qualified human resources in biosciences,

and well-developed pharmaceutical and food and

beverage industries put Argentina in a privileged

position to capitalize on existing global opportunities.

In particular, the large number of researchers (highest

per active person in Latin America), over 35 biosciences

research institutes within firms and universities,

doctoral and postdoctoral biotechnology training

institutions, and a leading position in genetically

modified crop use, provide Argentina with strong

foundations to build a dynamic and sophisticated

biotechnology industry.

• PROFITABLE AREAS OF APPLICATION. Modern

biotechnology has applications in many fields, including

human and animal health, agriculture, fishing and

forestry, food processing, industrial processing, and

natural resource extraction. At the global level, the

health sector is the largest, representing almost

two thirds of total revenues. The agriculture & food

processing segments account for approximately

12%. Argentina has already established competitive

advantages in some niches within the industry,

particularly in agricultural, food and health segments.

The local market is especially focused on the production

of agricultural inputs, pharmaceutical products, human

diagnosis products and fine chemicals (amoniacids,

pigments, antibiotics and vitamins).

• HUGE POTENTIAL. Biotechnology consists in the

application of science and technology to living

organisms, biological systems, or derivatives thereof,

to make or modify products or processes for the

production of knowledge, goods and services. Modern

biotechnology can substantially contribute to improve

human welfare and current living conditions by

delivering essential outputs as pharmaceutical products

or vaccines and increasing both the quantity and quality

of food.

• A THRIVING GLOBAL INDUSTRY. The global

biotechnology industry has been growing steadily,

at a compound annual growth rate of 13% during

2000-2007. Despite worldwide economic turmoil,

the industry sustained its solid performance in 2008,

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

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

countries are exhibiting significant growth rates.

Argentina is among those countries.

• REGIONAL LEADERSHIP. Knowledge being the key

component in the biotech industry, Argentina managed

to leverage its strong research capacity to host and

create companies that use or produce biotechnology

inputs. With over 80 established companies, Argentina

is the country with the highest amount of biotechnology

companies per capita in Latin America. Domestic

firms feature a wide range of activities, from the use

of biotechnological supplies in production processes

to the manufacture of modern biotechnology products

through recombinant DNA techniques.

Phot

o: c

ourt

esy

of B

io S

idus

labs

�

Endowed with vast extensions of arable land (32 million

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

and generation of genetically modified crops, leading to

an agricultural revolution that increased both the size of

the cultivated land and the yields per hectare of its main

crops. Record-high levels of agricultural production

are reached year after year. Argentina is today a leading

country in adopting biotech crops: it has the highest

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

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

II. Industry Structure and Performance

STRUCTURE

Diverse and competitive sector. More than 80

firms produce modern biotechnological products locally,

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

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

health products, 12% food ingredients and 24% human

health products. The sector is composed of a mix of global

players and growing domestic companies. Global leaders

such as Bayer CropScience, Dow AgroSciences, Nidera,

Monsanto and Pioneer are active in the country, and

local firms like Bioceres, Biocientífica, Biogénesis-Bagó,

BioSidus, Cassará, Indear and Wiener Lab are competitive

players in diverse segments. Around 80% of firms are

domestic small and medium size companies, focused

almost exclusively on biotechnological activities.

INDUSTRY BUSINESS PERFORMANCE

Sales and exports. Conservative estimations calculate

biotechnology annual sales at US$400 million and

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

agricultural sector leads the sales by area of application:

seeds and plant varieties concentrate 41% of total sales,

animal health explains 25%, and inoculants add an

additional 8%. The food ingredients sector accounts for

15% of sales and human health for the remaining 11%.

Biotechnology exports amount to over US$80 million

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

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

Seeds and plants and human health explain together 72%

of total employment, distributed in almost identical shares.

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

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

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

Patent and Trademark Office (USPTO) ant the European

Patent Office (EPO) by the Argentine biotech sector

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

INDUSTRY SEGMENTS

A diverse array of products are being produced locally,

covering several areas of biotechnology applications.

Agriculture, food processing, human heath and diagnosis,

and animal health are segments in which domestic

biotechnology presents attractive competitive advantages.

Agricultural sector. Within agriculture, biotechnology

has many applications, including genetic modifications

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

fertilizers, vet products and genetic selection for cattle

breeding. The worldwide performance of GM crops stands

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

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

million hectares in 25 countries in six continents. These

figures are expected to double in the next ten years.

Biotechnology by Segment Share of total firms, sales, employment and exports Soybean Area and GM Soybean Evolution

GM Crop Area by Country

�0

��

�1 �6��

1� ��

10 �0

1�

1�

11

1�

��11

�6��

4880%

�0%

�0%

60%

80%

100%

Firms Sales Employment Exports

.

Inoculants Seeds & Plants Animal Health Food Ingredients Human Health

Source: Bisang, Gutman, Lavarello, Sztulwark and Diaz (�006) Source: CONABIA and SAGPYA Total soybean area GM soybean/ Total soybean

-

10

20

30

40

50

60

70

80

90

100

%

-

1996/9

7

1997/9

8

1998/9

9

1999/0

0

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

In t

hous

and

of h

ecta

res

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

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

Argentina 17%

Canada 6%

U.S. 50%Brazil 13%

China 3%India 6%

Others 5%

6

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

productivity in soy, corn and their derivatives. Some

companies also produce bioinsecticides and pulse crop

inoculants, while others use seedling micropropagation

and vegetable tissue culturing technologies.

Food Processing. Argentina counts with a large and

highly competitive food and beverage industry, with

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

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

total manufacturing production exports). Significant

applications of biotechnology are being developed

and implemented in this field. Biotechnology in food

processing is focused on the production of high-fructose

corn syrup and its intermediate product glucose syrup.

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

La Serenísima-Danone) have recently launched their

probiotic milk lines by incorporating Lactobacillus and

Bifidobacterium strains that, as probiotic species, favor the

intestinal microbacterial ecosystem.

DNA technology, including human erythropoietin, human

interferons, colony-stimulating factors and human growth

hormone. These products are already sold in Asia, the

Middle East and Latin America. Argentina is, along

with the U.S., Australia, Korea and New Zealand, one of

the few countries in the world with the technology of

pharmaceutical diary. It is also one of nine countries with

capacity to clone animals successfully. BioSidus is one

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

products and developments using recombinant protein

and monoclonal antibodies to detect infectious diseases,

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

and HIV. There is also capacity for molecular oncology,

leukocyte differentiation antigens, genetic predisposition to

hereditary diseases, and filiations and personal identity.

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

2002 2003 2004 2005 2006 2007 2008

Production

Exports

Source: Center of Studies for Production (CEP)

-

10.000

20.000

30.000

40.000

50.000

60.000

Human Health and Diagnosis. Applied biotechnology’s

greatest impact in terms of industry has occurred in

pharmaceuticals, where a long-standing tradition of

biomedicine combines with a large domestic industry.

With local pharmaceutical production growing at an

annual rate of 16% between 2002 and 2008, investments

have increased 10 times during this period. Pharmaceutical

domestic companies have the capacity to develop new

products covering all stages from product innovation

through commercialization, including pilot plant tests,

manufacturing, clinical trials and regulatory authority

approval. Most products result from applying Recombinant

Sales of Domestic Pharmaceutical Production (in US$ million)

Source: National Institute of Statistics and Census (INDEC)

2002 2003 2004 2005 2006 2007 20080

500

1.000

1.500

2.000

2.500Exports

Internal market

Animal health. The strong local pharmaceutical

tradition and the knowledge generation in related areas

allowed for the production of transgenic cattle and animal

vaccines. Important progress was made in the areas of

animal food and health due to the active involvement

of national and multinational companies present in

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

of a joint project between the Center for Animal Virology

(CEVAN) and the National Council for Scientific and

Technical Research (CONICET). Other examples of public-

private collaboration include the vaccines developed by

the Virology Lab of the National Institute for Agricultural

Technology (INTA) that were produced and marketed

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

produces and markets vaccines against foot-and-mouth

disease and exports vaccines for salmons. Vilmax, a leading

company in the production of colorants, manufactures

specific colorants to purify proteins.

�

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 19�0s, 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 198� to create BioSidus as an organically individual enterprise, which by 1990 had rolled out its first biogeneric product: erythropoietin. Almost �0 years later, BioSidus commercializes locally and abroad seven recombinant proteins for use in human health: erythropoietin, interferon alfa �a and �b, 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-��, interferon beta 1b and streptokinase.

Over ��% of BioSidus revenues come from exports to almost �0 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 �� 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 �009.

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.

8

III. Foundation for Success

financed courses for more than 2,400 students from

Argentina, Brazil, Uruguay and Paraguay

RESEARCH AND DEVELOPMENTResearch institutes. Research institutes from

universities and companies carry out R&D activities in

a wide range of disciplines and specialties in Argentina.

Almost 70 of these centers (41 companies and 27 research

groups) are focused on agricultural issues and 37 are

dedicated to biosciences. Specifically, 28 are devoted

to biotechnology research, including public centers,

university centers and private foundations.

Regional hubs and business incubators. A recent

trend has been the emergence and consolidation

of technological hubs and business incubators in

different knowledge-intensive fields. A highlight within

agricultural research is the Rosario biotechnological

hub in the province of Santa Fe. Comprised of several

institutions mainly devoted to vegetal biotechnology,

the hub brings together more than 400 professionals,

constituting the main biotechnological pole in Latin

America. The Argentine-Spanish Center for Plant

Genomics (CEBIGEVE) and the National Institute for

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

CEBIGEVE is an R&D center resulting from the scientific

cooperation between Spain and Argentina. INDEAR, in

turn, results from the partnership between the private

firms Bioceres and BioSidus and the CONICET.

LOCAL SKILLS AND TALENTQualified human resources. Developing

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

active) and has internationally renowned scientific

skills and a pioneering spirit. In natural sciences, this

tradition is evidenced by three Nobel Prizes awardees (B.

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

researchers and scholars undertake research activities

both in the public and private sectors. These talents are

also growing thanks to the Program RAICES, a strategic

project from the Ministry of Science and Technology

that promotes and facilitates the return of Argentine

distinguished researchers working abroad. In the last few

years more than 600 professionals have been relocated in

local research institutions.

Specialized research and training. Today, 1,350

researchers and technicians undertake scientific

research in biosciences. Specifically, 241 scientists and

101 technicians are involved in biotechnological research

lines. More than 30 universities and higher education

institutions offer undergraduate and graduate careers

in biotechnology. Scientific researchers continue their

education through doctoral and postdoctoral scholarships

sponsored by CONICET. Additionally, courses for

researchers coming from the public and private

sector are offered at the Argentine-Brazilian School of

Biotechnology (EABBIO). From 1987 to 2003, EABBIO

Phot

o: c

ourt

esy

of B

iogé

nses

is B

agó

9

COMMUNITY

Public perception. Argentina has a positive public

perception of biotech products and a good acceptance

of transgenic organisms. The first genetically-modified

crop in Argentina’s agriculture was glyphosate-tolerant

soybean, approved in 1996. Since then, several crops

and their features have been tested in the field, and

this type of technology has spread rapidly. In the last

agricultural campaign, they accounted for over 90% of

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

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

government level, Argentina supports biotechnological

undertakings, leveraging communication and information,

and improving controls to provide security to consumers.

INDUSTRY NETWORKING

There are several organizations that promote

biotechnology and communicate the sector´s news

and achievements in Argentina:

• FAB (Argentine Forum on Biotechnology):

with 20 years of continuous experience, the

organization promotes biotechnology and

cooperation and collaboration among researchers,

companies and the government to fully develop

biotechnology.

• 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.

• ASA (Argentine Association of Seed Traders):

it has a proactive attitude to spread biotechnology

through the “Por qué Biotecnología” (Why

Biotechnology?) program.

• RedBio (reporting to Food and Agriculture

Organization): responsible for a communication

campaign at primary, secondary and tertiary

educational levels.

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

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

-

5,000

10,000

15,000

20,000

25,000

30,000 GMO’sConventional

1996/97

1997/98

1998/99

1999/00

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

Phot

o: c

ourt

esy

of R

oem

mer

s la

bs

10

IV. Policy Initiatives

BUSINESS PROMOTION Incentives. Government, private companies and

research institutions are working together in the

promotion of modern biotechnology. Law 26,270

sets promotional measures that are related to human

resources and capital expenditures during R&D and

production of technologies applicable to several

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

process of being regulated by the technical authorities,

include accelerated amortization of the income tax,

early reimbursement of Value Added Tax, and tax credit

bonds for contributions to the social security and services

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

through venture capital investment.

SCIENTIFIC PROMOTIONFunds for R&D. The national government has

implemented several programs and instruments that

promote and facilitate basic research and technological

investment, and biotechnology has always been a priority

topic during the last decades. These tools have been

deepened since the creation in 2007 of the Ministry

of Science and Technology. Within the Ministry, the

National Agency for Scientific and Technological

Promotion (ANPCyT) encourages scientific, technological

and innovation-related activities with resources coming

from contributions from the national budget and the

Inter-American Development Bank (IDB). The two

main Agency funds are the Fund for Scientific and

Technological Research (FONCyT) and the Argentine

Technology Fund (FONTAR).

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 �00� and �008, for over US$�� million.

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$1� million in �00�-�006.

National Agency for Scientific and Technological Promotion (ANPCyT)

Phot

o: c

ourt

esy

of IN

TI. N

atio

nal I

nsti

tute

of

Indu

stri

al T

echn

olog

y

11

REGULATORY FRAMEWORKEnvironmental and health safety. In Argentina,

GMOs are evaluated before these products are marketed.

Since 1992, 400 field trials for different transformation

events have been assessed and authorized. The

evaluation process includes three steps. First, the

National Advisory Committee for Agricultural

Biotechnology (CONABIA) evaluates the likely impact

on the agricultural ecosystem, comparing potential

environmental consequences with those of conventional

plants, initially through experimental release and then

more extensive release into the environment. Second,

the National Service of Agricultural and Food Health

and Quality (SENASA) conducts a food safety evaluation.

Third, the National Direction for Agricultural Food

Markets (DNMA) makes an evaluation of potential

commercial impact by analyzing the status of the GM

product under study in the destination markets in terms

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

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

authorized for sale.

Promoting and protecting health. The National

Administration of Drugs, Foods and Medical Technology

(ANMAT) promotes and protects human health by

assuring the quality and efficacy of medical products,

food and domestic-use products, medical and diagnosis

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

providing authorization for release to the market.

Intellectual Property Rights. As a signatory of the

Trade-Related Aspects of Intellectual Property Rights

agreement (TRIPS), Argentina provides an effective

patent protection system, including pharmaceutical

products. The National Institute of Industrial Property

(INPI) made significant progress in reducing its patent

backlog, including the implementation of fast-track

procedures and a one-time opportunity in 2005 for

companies to prioritize their patent applications before

INPI. FONTAR offers subsidies to SMEs to apply for

patents both locally and abroad.

Phot

o: c

ourt

esy

of B

iogé

nses

is B

agó

1�

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.

1�

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, �009 / Bisang, Gutman, Lavarello, Sztulwark and Diaz (comp.) “Biotecnología y desarrollo. Un modelo para armar”, UNGS-Prometeo, Buenos Aires, �006 / Center of Studies for Production (CEP) / Ernst & Young, Beyond Borders: Global Biotechnology Report �009 / ISAAA Report

on Global Status of Biotech/GM Crops, �008 / Ministry of Science and Technology (MINCYT) / National Institute of Statistics and Census (INDEC) / National Observatory for Science Technology and Innovation, Strategic Plan, �00� / OECD, Biotechnology Statistics, �006 / Sánchez, Rozemberg, Butler and Rufo, “The emergence of new successful export activities in Argentina: self-discovery, knowledge niches, or barriers to riches?”, IDB, �008 / 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.

Phot

o: c

ourt

esy

of IN

TI. N

atio

nal I

nsti

tute

of

Indu

stri

al T

echn

olog

y

1�

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 �.� million square kilometers

Population �0.6 million inhabitants

Population growth 1.0% per year

Adult literacy rate 98%

Life expectancy at birth �� years

GDP per capita (PPP) US$ 1�,�1�

Currency Argentine peso ($)

Form of government Federal Presidential Republic

Political division �� autonomous provinces and the Autonomous City of Buenos Aires

Time zone GMT-0�:00

Official language Spanish

�00� �00� �00� �006 �00� �008

GDP growth rate (annual %) 8.8% 9.0% 9.�% 8.�% 8.�% �.0%

GDP (PPP) (millions of US$) ���,�99 ���,0�1 �19,�68 �69,��0 ���,1�0 ���,860

GDP (millions of US$) 1�8,0�8 1��,1�8 181,96� �1�,868 �60,68� ��8,�0�

Exports of goods and services (millions of US$) ��,��9 �9,86� ��,0�� ��,��� 66,088 8�,608

Imports of goods and services (millions of US$) 18,8�� ��,9�0 ��,9�9 �1,1�0 ��,��� 6�,�9�

Balance of trade of goods and services (millions of US$) 1�,61� 11,9�� 1�,08� 1�,��� 1�,��� 1�,11�

Trade surplus (% of GDP) 1�.�% �.8% 6.6% 6.�% �.9% �.6%

Current account surplus (% of GDP) 6.�% �.1% �.9% �.6% �.�% �.�%

Primary fiscal surplus (% of GDP) �.�% �.9% �.�% �.�% �.�% �.1%

Gross capital formation (% of GDP, constant prices) 1�.�% 1�.�% 19.8% �1.6% ��.6% ��.0%

Gross national savings (% of GDP, current prices) 19.6% �0.6% ��.�% �6.�% �6.6% �6.�%E

Foreign direct investment (millions of US$) 1,6�� �,1�� �,�6� �,��� 6,��� �,9�9

Exchange rate ($/US$) �.9� �.9� �.9� �.0� �.1� �.16

Foreign reserves (millions of US$) 1�,119 19,6�6 �8,0�� ��,0�� �6,1�6 �6,�86

Unemployment rate (% of EAP) 1�.�% 1�.6% 11.6% 10.�% 8.�% �.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 �0, �009).

Main Economic Indicators

1�

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 EnvironmentProsperAr 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.

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

www.prosperar.gov.arinfo@prosperar.gov.ar+54 11 4328 9510