VZCZCXRO4425
RR RUEHIK
DE RUEHLI #0588/01 3241600
ZNR UUUUU ZZH
R 201600Z NOV 09
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC 7978
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHPD/AMCONSUL PONTA DELGADA 0640
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 LISBON 000588 
 
SIPDIS 
SENSITIVE 
 
COMMERCE DEPT FOR ITA/MAC:DCALVERT 
 
E.O. 12958: N/A 
TAGS: ECON KIPR PGOV PO SZ EU UK FR GM
SUBJECT: PORTUGAL PHARMACEUTICAL COMPANIES PLAN ROUNDTABLE 
MEETING 
 
REF: LISBON 552 
 
LISBON 00000588  001.3 OF 002 
 
 
SUMMARY 
------- 
¶1.  (SBU) The Local American Working Group (LAWG) of the 
Pharmaceutical Association in Portugal hosted a November 10 
meeting with diplomatic and company representatives to 
present the results of a recent market survey of 
pharmaceutical companies and to recount a recent LAWG meeting 
with Basilio Horta of the Portuguese Agency for Investment 
(AICEP).  The survey results reveal modest industry growth 
and investment in Portugal, and Horta is reportedly 
interested in industry suggestions for increased investment 
and offered to arrange an industry roundtable meeting with 
the Ministries of Economy and Health and AICEP in December or 
January.  End summary. 
 
¶2.  (SBU) On November 10 the Charge d'Affaires, Senior 
Commercial Officer, and Poleconoff attended a meeting 
organized by the Local American Working Group (LAWG) of the 
Pharmaceutical Association in Portugal.  Also in attendance 
were:  UK Ambassador Ellis, Swiss Ambassador Shaller, and 
German Econ Counselor Deichmann.  There were also company 
representatives from Abbott Labs (U.S.), Amgen (U.S.), 
Janssen-Cilag (U.S.), Merck Sharp & Dohme (U.S.), Eli Lilly 
(U.S.), AstraZeneca (U.K.), GlaxoSmithKline (U.K.), Novartis 
(Switzerland), Boehringer Ingelheim (Germany), and Aventis 
(France).  This meeting followed up on issues discussed in 
the September 24 meeting (reftel). 
 
SURVEY SHOWS SOME INVESTMENT AND GROWTH BUT ROOM FOR MORE 
--------------------------------------------- ------------ 
¶3.  (SBU) Since the September 24 meeting, LAWG surveyed 
pharmaceutical companies about their investments in Portugal, 
which total approximately 34 million euros.  Licenses, 
research and development partnerships, and grants all showed 
flat to slightly increasing activity over the last 3 years, 
and industry exports grew about 20 percent over the period. 
Clinical trials have declined -- respondents said Portugal 
produces very good data, but the slow GOP bureaucracy 
discourages additional activity. 
 
¶4.  (SBU) The survey revealed that seven pharmaceutical 
companies have shuttered manufacturing operations in Portugal 
since 1995, but the reasons for the closures were not given. 
The LAWG survey also highlighted movement of "shared 
services" (e.g., information technology, support services) to 
other countries.  (Note: Diplomatic attendees commented that 
these globalization issues are the same in other countries, 
where manufacturing and backoffice services are moving to 
regions with lower wages.) 
 
¶5.  (SBU) Respondents suggested several opportunities for 
additional investment in Portugal if market conditions 
improved, including formation of a national epidemiology 
center, research and development seminars and funds, 
increased university linkages, and more clinical trials. 
 
INVESTMENT HEAD TO ASSIST WITH GOVERNMENT ROUNDTABLE 
--------------------------------------------- ------- 
¶6.  (SBU) Julie Brown of AstraZeneca said the survey results 
were recently shared with Basilio Horta of AICEP.  Horta was 
very interested in the results, particularly the benefits of 
increased pharmaceutical investment in the Portuguese 
economy, and offered to help schedule a joint meeting for the 
pharmaceutical companies with the Ministries of Economy and 
Health and AICEP, preferably in December or January.  Brown 
said Horta believes it is critical that the industry state 
their case to these ministries soon while new post-election 
policies are still being formed. 
 
¶7.  (SBU) Diplomatic attendees noted that Horta did not 
include the Ministry of Justice in his roundtable offer. 
Ambassador Ellis opined that Horta recognizes that judicial 
reforms required to improve intellectual property rights 
enforcement in Portugal are too large to be addressed in a 
GOP/pharmaceutical industry roundtable.  All attendees agreed 
that movement on GOP pricing policies, pharmaceutical 
reimbursement delays, and opaque revenue caps were more 
attainable near-term targets. 
 
¶8.  (SBU) The diplomatic attendees urged the companies to 
take Horta up on his offer and schedule the meeting.  There 
was considerable debate about diplomatic participation at the 
meeting, with a final consensus that diplomatic 
representatives could attend if invited and participate as 
appropriate. 
 
LISBON 00000588  002.3 OF 002 
 
 
 
COMMENT 
------- 
¶9.  (SBU) LAWG is slowly moving toward the direct engagement 
with the GOP that post has long advocated.  The group's 
hesitancy and constant need for reassurance and input from 
the diplomatic community is baffling, but the increased pace 
of activity toward a meeting with the GOP is a positive sign. 
 Post will continue to support the LAWG's efforts and report 
future progress. 
 
 
For more reporting from Embassy Lisbon and information about Portugal, 
please see our Intelink site: 
 
http://www.intelink.sgov.gov/wiki/portal:port ugal 
BALLARD