Pharmaceutical Market Trend Analysis in the Middle East and

Africa

By

Kingshuk Ghosh

Agenda• Geographical boundaries (Middle East – North Africa & Sub-

Saharan Africa)

• Middle East & North Africa- SWOT Analysis- Key Players (Qatar, Saudi Arabia, Jordan)

• Sub-Saharan Africa- SWOT Analysis- Facts & Figures- Key Players (South Africa, Kenya)

• Conclusion

North Africa and Middle East

Sub - Saharan Africa

Middle East and North Africa(market in transition)

Strengths

Burgeoning local pharmaceutical production industry

Focus on generic manufacture

Weaknesses

Protectionist regime

Regulatory environment poses as tough entry barriers (price controls, parallel imports, economic fluctuations)

OpportunitiesPopulation growth (higher ave. annual projected population growth at 1.7%)

Rising consumer demand

International pressure to instill fair trade (WTO)

ThreatsNo uniformity in product patent laws Large discrepancies in the implementation of Intellectual Property Rights

Economic & security risks due to changing geopolitical scene

Key players(Middle East & North Africa)

Qatar

- Law passed for free market (reduce barriers of entry)

- Reduction in drug prices & increased availability

- Opportunity for lower-priced branded & generic drugs

- High per-capita expenditure on pharmaceuticals

Saudi Arabia

- Strong population demographics

- Increasing investment in social infrastructure

- High levels of chronic disease

- Registration of drugs more difficult (SFDA conflicts with US & EU drug regulators)

- Low risk/reward profile of 37

Jordan

• Strongest medical tourism sector in the region

• Measures taken to align Jordan’s intellectual property laws with international standards

Sub – Saharan AfricaStrengths

1. Established local pharmaceutical market

2. Development of novel formulations

3. Contributions of The Foundation for Innovative Diagnostics (FIND)

Weaknesses1. Prequalification of drugs by WHO is difficult2.Produce at a cost disadvantage (low conversion cost scale efficiencies)3. More expensive asset base4.Lower labor productivity5. Regulation (import difficulties & fragmentation of distribution networks)

Opportunities

1.Establish scale & invest in quality certification

2.Explore contract manufacturing, product licensing, technology-transfer-based relationships with multinational companies

Threats

1. High prevalence of counterfeit and substandard products in circulation

2. Lack of control & security of supply (HIV, TB drugs & APIs)

Facts & Figures

Key Players(Sub-Saharan Africa)

South AfricaPros

• Limited degree of API production

• Politically stable

• Strong communication, research & physical infrastructure

• World’s highest rates of biodiversity per unit area

• Attractive base for clinical research

Cons

• Intellectual property sold offshore or not commercialized

• Generic pricing lower than that of counterparts

Kenya

Thank you