The pharmaceutical and biomedical sector represents one of the highest value-added industrial segments and a strategic priority for the Hungarian economy. The local production landscape features the coexistence of historic national champions with an international reach, such as Gedeon Richter, Béres Pharmaceuticals, and Meditop, alongside major multinational groups including AstraZeneca, Pfizer, Novartis, and Servier.

Excellent network, leading medical universities
This ecosystem is supported by an excellent network of leading medical universities – including Semmelweis University and the universities of Debrecen and Szeged – which actively collaborate with companies in applied research clusters dedicated to nanotechnology, biomolecular chemistry, and biopharmaceuticals. From a foreign trade perspective, the sector exhibits a strong export orientation and a structurally positive balance. In 2023, exports reached approximately 8.5 billion dollars, firmly positioning medical and pharmaceutical products at the top of the country’s exported commodity categories, with European Union markets, led by Germany, serving as the primary destinations.

The attractiveness of the Hungarian market has historically been linked to a competitive fiscal framework, characterized by a corporate income tax (CIT) of 9%, the lowest nominal rate in the European Union, although the introduction of the OECD global minimum tax in 2024 mandates a minimum effective rate of 15% for large multinational groups. To support innovation, the system offers a 10% tax credit on research and development costs, which is refundable in case of excess, as well as regional aid covering up to 50% of investments in less developed areas.

Péter Magyar’s victory means reduced currency risk
On the regulatory front, the extraordinary tax on pharmaceutical profits introduced in 2022 was finally eliminated as of January 1, 2025. However, certain critical issues flagged by investors remain, such as past regulatory unpredictability due to sudden fiscal measures, bureaucratic delays in accessing innovative drugs, and the termination of the double taxation treaty with the United States.

Within a macroeconomic context highly integrated into European value chains, Hungary experienced a profound political discontinuity with the parliamentary elections of April 2026, which saw the victory of Péter Magyar and the Tisza party, ending the long governance cycle of Viktor Orbán. The new executive has placed the revitalization of relations with European institutions, the improvement of administrative transparency, and the unlocking of still-frozen EU funds and the Recovery and Resilience Facility among its top priorities.

This shift has generated a positive market reaction, reflected in the strengthening of the forint and the prospect of a renewed boost in public investment for healthcare and research infrastructure, while simultaneously reducing currency risk for foreign companies operating in the country.

Growing economic relations
In this scenario, economic relations with Italy remain solid and growing, with bilateral trade reaching approximately 13.5 billion euros in 2024. The Italian entrepreneurial presence in the pharmaceutical sector is led by prominent players such as the Menarini Group and Chiesi Farmaceutici. The greatest future growth opportunities for Italian companies lie in high-tech segments, such as the supply of active pharmaceutical ingredients (APIs) and chemical intermediates, the distribution of innovative medical devices, and participation in strategic European projects.

Notably among these is the IPCEI Tech4Cure initiative, focused on integrating artificial intelligence and digital technologies into healthcare, where the cooperation between Hungarian production capacity and Italian excellence in clinical research can generate high-profile synergies.