The Outlook For Pharmaceuticals In The Middle East And North Africa

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In spite of recent political unrest, economic, social and demographic changes are making the pharmaceutical markets in the Middle East & North Africa (MENA) region more attractive. The Economist Intelligence Unit (EIU) forecasts that the five MENA markets covered in this collection will represent a combined GDP of US$2.5 trillion in 2016, led by Turkey and Saudi Arabia. Economic development is changing the epidemiological health profile in the region, with the increasing prevalence of communicable diseases. In demographic terms, the population in these five MENA markets is still young and is expected to reach 246.2 million in 2016, led by Egypt and Turkey. Nevertheless, there is a sizeable elderly population that will increase demand for healthcare services.

Healthcare development towards privatisation
The population has different levels of expectations in each national healthcare system. The healthcare system in Egypt, for instance, is in a transitory phase, characterised by progress towards privatisation. While access to free healthcare exists, private services are appearing as a result of the decline in the ...
... standard of public sector care. There is a need for considerable investment in order to continue the modernisation of programmes and maintain the existing facilities. There are two main areas of reform: primary healthcare and the provision of a national health insurance scheme. In Morocco, the health insurance system is in a transitional phase. Overall, opportunities exist, particularly in Turkey and Egypt, as combined health expenditure in these five markets is projected at US$153.2 billion in 2016. http://www.bharatbook.com/market-research-reports/healthcare-market-research-report/the-outlook-for-pharmaceuticals-in-the-middle-east-and-north-africa.html

Increasing pharmaceutical demand
International companies recognise the value and potential of these five MENA pharmaceutical markets. Sanofi, for instance, is the largest pharmaceutical operation in Morocco, whilst GlaxoSmithKline is the leader in Saudi Arabia. Some local producers, such as Hikma from Jordan and SPIMACO from Saudi Arabia, aim to become regional leaders. The projected CAGR for the region is very attractive compared to mature markets or other emerging markets. In fact, pharmaceutical sales in these five MENA markets are expected to amount to a combined value of US$35.8 billion at retail prices in 2016, including pharmacy and hospital sales. The region is led by Turkey, followed by Egypt and Saudi Arabia. Local manufacturing production is fragmented and geared towards branded generics, but a reliance on imports remains. The biotechnology industry is still in its infancy market research reports

HIGHLIGHTS FROM THE REGION

EGYPT
The Egyptian pharmaceutical industry has enjoyed a period of considerable development in recent years. There is a strong domestic production sector and, while the majority is destined for the domestic market and imports play an important role, Egypt has emerged as a leading exporter of pharmaceuticals to Arab, Asian and Eastern European markets. Public production, represented by the state-owned holding company HOLDIPHARMA, accounts for around one-tenth of sales by value and nearly two-tenths by volume. There are a number of leading local private producers, some of them involved in biotechnology, which are strengthening their capabilities; Minapharm Pharmaceuticals, for example, acquired 95.0% of the share capital of the German ProBioGen in June 2010. Some leading multinational producers also manufacture in Egypt, including AstraZeneca, Eli Lilly, GlaxoSmithKline, Hikma, Novartis and Sanofi, in spite of weak IPR standards, particularly in terms of data exclusivity. In 2011, GlaxoSmithKline announced investments of LE500.0 million (US$82.0 million) in Egypt over a five-year period.

JORDAN
Since its accession to the World Trade Organization (WTO), Jordan has demonstrated its commitment to WTO rules, particularly the Trade-Related Aspects of Intellectual Property Rights agreement. This is exemplified by the recent improvements to, and enforcement of, intellectual property protection. Often criticised for registering unauthorised copycat drugs made by local manufacturers and applying discriminatory measures towards multinationals in the past, Jordanian authorities are now being criticised by domestic producers over the blocked registration of a number of pharmaceuticals, as they infringe copyright laws.

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