Read the Conversation
Conversation highlights:
- Argentina possesses exceptional baseline conditions with around 1,200 medical professionals per million inhabitants and 80% domestic capital ownership in pharmaceutical manufacturing.
- According to the IP index of the U.S. Chamber, the country's intellectual property protections score only 35%, well below the regional average of 43.7%, creating significant barriers to investment.
- Provincial decentralization is reshaping healthcare dynamics, with 20 of 24 provinces increasing health budgets and creating new engagement opportunities.
- The US-Argentina Agreement for Reciprocal Trade and Investment (ARTI) provides a framework to address longstanding IP and regulatory challenges.
- Clinical trials increased over 70% between 2017 and 2021, demonstrating Argentina’s pharmaceutical research capacity.
- New investment incentives like the RIGI regime offer 30-year stability and tax benefits for investments over $200 million.
EF: You've been in this position for seven months now. What is your mission, and what are the most important priorities on your agenda?
LH: Being seven months into the job feels like I’ve been here for years, because there’s tremendous momentum in the bilateral relationship. We see enormous value and potential to unlock Argentina's innovation capabilities, particularly in pharmaceuticals. My focus is on maintaining that momentum.
We’ve witnessed a couple of years of positive economic transformation under President Milei, centered on a very pro-market agenda. As the US Chamber of Commerce, we promote free enterprise and advocate for a level playing field where rules are clear, fair, and applied equally to everyone. This administration prioritizes exactly that. We’ve already seen significant improvements based on this approach, although more work remains.
This year will be pivotal for the pharmaceutical industry. A new wave of reforms is coming that could address issues that have lingered for years. The government has signaled a strong commitment to tackling these challenges, understanding that they are fundamental pillars for attracting investment and maximizing Argentina's potential.
What was particularly encouraging during the recent “Argentina Week” in New York was hearing coherent, aligned messaging from government officials across different ministries. There is a clear vision and strong backing for the president’s agenda. For American businesses, this represents a tremendous opportunity. American companies have a long track record of investing in Argentina, even during difficult times, and stand ready to be trusted partners for both the Argentine and US governments.
EF: Argentina shows strong scientific and industrial potential, but limited foreign R&D investment. What is holding it back, and what would need to change to unlock it?
LH: Argentina already has exceptional baseline conditions to emerge as a regional and potentially global leader in life sciences and biotechnology innovation. The country has around 1,200 medical professionals per million inhabitants, roughly three times the Latin American average, which reflects a very strong base of human capital.
U.S. companies already have a real track record of bringing capital, know‑how, and platforms to Argentina’s life‑sciences sector, but that role is still well below its potential
It also has proven pharmaceutical manufacturing capacity, with around 80% domestic capital ownership, which is unique in the region. Another important strength is its clinical trials ecosystem. Between 2017 and 2021, clinical trials increased by more than 70%. There are also examples of breakthrough innovation, such as HB4 transgenic wheat, the first of its kind globally, which demonstrates Argentina’s scientific capabilities.
However, this potential remains constrained by structural challenges. Intellectual property protection levels are still below the regional average, and regulatory processes and investment frameworks require further improvement. As a result, private and foreign investment in R&D remains limited. More than 75% of R&D in Argentina is still driven by public institutions, while foreign investment in pharmaceuticals is below 1%, significantly lower than comparable markets such as Chile, Colombia, or OECD economies.
The pharmaceutical industry is inherently high-risk. It requires substantial upfront investment without certainty of success, followed by long development timelines. For investors to commit capital, they need confidence in stable, predictable rules and in the protection of innovation over time.
Ultimately, unlocking Argentina’s full potential will depend on addressing these structural issues through consistent, long-term policy frameworks that go beyond political cycles and provide the certainty investors need to engage at scale.
EF: How would you characterize the country’s real innovation capacity today?
LH: The numbers are strong. Argentina has more than 1,000 researchers employed in R&D per million inhabitants, triple the regional average. It invests around 5.5% of GDP in higher education, making it the third-largest investor in the region after Brazil and Costa Rica.
In terms of R&D funding, an average of 0.59% of GDP is allocated to research, also among the highest in the region. Pharmaceutical companies are a key engine of innovation, investing around 2% of total revenues in innovation activities between 2014 and 2016. This translates into more than three out of every 100 employees working in innovation, five times higher than the manufacturing average. Eight out of ten pharmaceutical companies are already engaged in at least one innovation project, significantly above regional benchmarks.
The domestic industry is particularly robust. As mentioned, around 80% of pharmaceutical companies operating in Argentina have domestic capital ownership, compared to Brazil, Mexico, and Colombia, where the figure is below 50%. Between early 2016 and early 2025, exports increased by more than 80%, domestic production for the local market grew by almost 30%, and domestic resale of imported products increased by 70%.
During COVID-19, companies like Gilead and Pfizer conducted vaccine clinical trials in Argentina. By 2021, the country had the highest rate of clinical trials per million inhabitants in the region, with nearly 70 studies. There is already a strong infrastructure in place, setting the ground for additional investments.
EF: How do you assess the current level of scientific collaboration between the US and Argentina, and what is needed to scale it?
LH: There are examples of collaboration, as seen during COVID-19, where clinical trials demonstrated the potential of US–Argentina partnerships. The challenge now is moving from sporadic initiatives to more systematic collaboration, particularly by increasing private investment.
There are strong historical precedents. US institutions such as the National Institutes of Health and the Rockefeller Institute played a key role in founding the Leloir Institute in the 1950s, which remains a leading research center today. That type of capacity-building partnership continues.
A more recent example is the technology transfer initiative involving the Pan American Health Organization, CSL Seqirus, and Sinergium Biotech. This focuses on cell-based seasonal influenza vaccine production, with Sinergium using US-developed technology. The project is expected to reach around 400 million doses annually by 2028, positioning Argentina as a regional supplier of vaccines.
Sinergium was also selected for the global mRNA technology transfer program led by PAHO and WHO. The opportunity for deeper collaboration through joint trials and technology transfer is clear, but it will depend on predictable regulation and enforceable intellectual property frameworks.
EF: What are opportunities that the U.S. Chamber’s US-Argentina Business Council see in Argentina? What important messages would you like to deliver about the US Chamber of Commerce’s commitment to Argentina?
LH: Two developments stand out. First, the growing importance of provincial engagement. Decentralization has been a priority since December 2023 and is now starting to take shape. Argentina has 24 provinces, and 20 have already increased their health budgets. There has been a gradual transfer of responsibilities, resources, and decision-making from the national level to the provinces.
For example, Santa Fe and Misiones increased their health budgets by between 57% and 106% in 2024. At the same time, engagement with the pharmaceutical industry is rising. In 2023, many provinces had little to no interaction with companies, whereas in 2024, several are already reporting more than 30 meeting requests. Companies that engage early at the provincial level will be better positioned in Argentina’s health market over the next decade.
Second, there are concrete policy developments creating new opportunities. In February, the United States and Argentina signed the ARTI (Agreement on Reciprocal Trade and Investment), addressing longstanding issues. Argentina has committed to resolving key concerns related to intellectual property, including patent eligibility, data protection, and enforcement. The pace of ratification and implementation will be critical.
There is also a solid base of investment incentives already in place. This includes the knowledge economy law, as well as the RIGI framework (Incentives Regime for Large-Scale Investments) for investments starting at $200 million, which offers up to 30 years of regulatory stability and tax benefits. These are important signals for long-term investors. Going forward, the development of a health technology assessment framework that supports innovation, rather than creating additional barriers, will also be important.
An extract from our official statement on Argentina’s decision to repeal restrictive pharmaceutical guidelines:
While this interview was being conducted (March 18, 2026), the Argentine government repealed a joint regulatory framework governing pharmaceutical patentability, which established highly restrictive guidelines for the examination of patentability of pharmaceutical inventions. This is a meaningful and decisive decision, even ahead of the formal ratification of the recently signed ARTI. It provides legal certainty and aligns Argentina with the WTO TRIPS agreement and international standards.
The U.S. Chamber of Commerce and its U.S.-Argentina Business Council celebrate this milestone with genuine enthusiasm. It is excellent news for innovators, for patients, and for Argentina’s competitiveness in the global life sciences value chain. It sends a strong signal of commitment to improve Argentina’s investment climate and foster innovation-driven growth.
That said, more work remains ahead. The repeal addresses pharmaceutical patentability guidelines but does not extend to limitations on patentability for biotechnological innovations involving living matter and natural substances -an area also identified by USTR Special Report 301 as diverging from prevailing international standards. Closing this gap is essential for Argentina to compete effectively across the full life sciences value chain. Equally important is the pending ratification of the Patent Cooperation Treaty (PCT) by Congress to align Argentina's patent system with global standards and to facilitate foreign patent filings efficiently. We look forward to pending issues being resolved in the near future and remain supportive of Argentina’s pathway to an environment conducive to innovation, competitiveness, and growth.
