1

Pharmaceutical Industry in OIC Member Countries Production, Consumption and Trade

STATISTICAL, ECONOMIC AND SOCIAL RESEARCH AND TRAINING CENTRE FOR ISLAMIC COUNTRIES

O R G A N I Z A T I O N O F I S L A M I C C O O P E R A T I O N

Pharmaceutical Industry

• An indispensable part of health care system.

• …develops, produces, and markets drugs…for use as medications.

• innovation…….almost all epidemics and chronic diseases are

curable today.

Despite all progress…..

• On average, 30% of the world population lacks access to life-saving

medicines.

– whereas, in some countries of Asia and Africa, the number may

be as high as 50%.

• …. the share of medicines in out-of-pocket health payments is

ranging between 40 to 60% in majority of LDCs.

2

Pharmaceutical Production and Consumption

3

• One of the largest and rapidly

growing global industries

– valued at US$ 942 billion

with a growth rate of 5.1%

over the previous year.

• Both in terms of production

and consumption, it is highly

concentrated in the developed

regions.

– North America (37%),

Europe (27%) and Japan

(12%) accounted for

nearly 76% of global

market

0

2

4

6

8

10

0

200

400

600

800

1000

2006 2007 2008 2009 2010 2011

Percent Billion US$

Total World Market Growth Over previous Year

North America 37%

Europe 27%

Japan 12%

Asia Australia

Africa 17%

Latin America 7%

Source: IMS Health Market Prognosis, May 2012.

Pharmaceutical Industry in OIC - I

• Local production and consumption data is largely unavailable.

• In member countries with data, local production satisfying a tiny

share of demand.

MENA:

– Saudi Arabia: … biggest market| US$3.4 billion| …with19 licensed

manufacturer…. satisfying only 20% of demand (2011).

– Egypt: one of the major flourishing markets| US$2.7 billion | ...with 119

licensed companies… satisfying more than 90% of demand (2011).

– Jordan: 16 licensed manufacturers …. satisfying 50 % of demand (2010).

– UAE: 8 manufacturing units…. satisfying 10 % of demand (2008).

– Morocco: 40 licensed manufacturers……satisfying 70% of demand (2010).

– Tunisia: 47 licensed manufacturers……satisfying 45% of demand (2011).

4

Pharmaceutical Industry in OIC - II

Asia:

Turkey: ..largest OIC market| over 9 billion US$| ...ranked 7th in Europe and 16th in world ... 134 licensed companies… satisfying 90% of demand (2011).

Kyrgyzstan: 42 licensed manufacturers…satisfying 4% demand (2011).

Malaysia: one of the fastest growing pharmaceutical market | valued over 1

billion US$| ... with 250 licensed manufacturers...satisfying 25-30% of

domestic demand (2011) .

Indonesia: …a growing market| over US$ 2 billion| …with 204 domestic

manufacturers ...satisfying 80% of demand (2010).

Pakistan: | US $1.25 billion | …with 478 licensed manufacturers…satisfying

47% demand (2009).

5

Pharmaceutical Industry in OIC - III

Sub-Saharan Africa:

– Nigeria: ...second lead ing producer in SSA | US$ 2.5 Billion market|

…146 licensed manufacturers...satisfying 25% of demand (2011).

– Senegal: 5 licensed manufacturers…satisfying 15% of demand (2011).

– Côte d’Ivoire: 8 licensed manufacturers...satisfying 10% of demand (2011).

– Cameroon: 13 licensed manufacturers...satisfying 4% of demand (2010).

6

Pharmaceutical Trade

• Pharma exports increased from US$

1.6 billion to US$ 2.4 billion.

– share in world exports remained

constant at about 1%.

– share in developing countries

exports remained stable at 7%.

• Pharma imports increased from US$

13 billion to US$16 billion.

– share in world imports declined

from 4.4% to 3.4%.

– share in developing countries

imports decreased from 24% to

14%.

0

1

2

3

4

5

6

7

8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2006 2007 2008 2009 2010 2011

Pe

rce

nt

Bil

lio

n U

S$

Exports

Total Exports Share in DCs Total Share in World Total

0

7

14

21

28

0

5

10

15

20

25

2006 2007 2008 2009 2010 2011

Pe

rce

nt

Bil

lio

n U

S$

Imports

Total Imports Share in DCs Total Share in World Total

Trade balance deficit increased from US$ 11 billion to over US$13 billion 7

Intra-OIC Pharmaceutical Trade

• Intra-OIC pharma exports increased

from US$ 727 million to US$ 880

million.

– share in OIC total exports

decreased from 45% to 36%.

• Intra-OIC pharma imports increased

from US$ 886 million to US$ 1399 in

2010 before declining to US$ 697

million in 2011.

– share in OIC total imports

decreased from 6.5% to 4%.

15 19 23 27 31 35 39 43 47 51

0

300

600

900

1200

1500

1800

2100

2400

2006 2007 2008 2009 2010 2011

Pe

rce

nt

Mil

lio

n U

S$

Exports

Intra-OIC Exports OIC-Non OIC Exports

Share of Intra-OIC in OIC Total Exports

1

3

5

7

9

0

4000

8000

12000

16000

20000

24000

2006 2007 2008 2009 2010 2011

Pe

rce

nt

Mil

lio

n U

S$

Imports

Intra-OIC Imports OIC-Non OIC Imports

Share of Intra-OIC in OIC Total Imports

8

This underlines the fact that member countries rely heavily on non-OIC

countries to satisfy their domestic demand.

Exports of Vaccines for Human Use

• OIC countries are still accounting for less than 1% of the total world vaccine exports.

– OIC exports of vaccine recorded

only 131 million USD.

• Intra-OIC exports of vaccine accounted for 36% of total vaccine exports of OIC countries in 2009, but it decreased to only 12% in 2010

0.36

0.61 0.62

0.26

0.65

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2006 2007 2008 2009 2010

Percent Share of OIC in Total World Vaccine Export

49

131

18 16

0

20

40

60

80

100

120

140

2009 2010

Million USD

Th

ou

san

ds

OIC's export to world Intra-OIC exports

9

Imports of Vaccines for Human Use

• OIC countries accounted for 8% in total world vaccine imports in 2008 and this ratio remained above 7% in the following two years.

– OIC imports of vaccine recorded over 1 billion for the first time in 2009 and reached to almost 1.4 billion in 2010, which is 10 times higher than their exports.

• Intra-OIC imports of vaccine accounted for 1.8% of total OIC import in 2009, but decreased to only 1% in 2010.

6.13 6.46

8.01

7.19 7.46

0

1

2

3

4

5

6

7

8

9

2006 2007 2008 2009 2010

Percent

Share of OIC in Total World Vaccine Import

1,114

1,397

20 15 0

200

400

600

800

1000

1200

1400

1600

2009 2010

Million USD OIC's import from world Intra-OIC imports

10

Policy Recommendations - I

• Pharmaceutical production requires skilled human resources like

scientists, pharmacists, biologists and lab technicians.

– Member Countries should encourage and empower their education system to

impart quality knowledge in academic d isciplines like Chemistry, Biology,

Medicines and other natural sciences.

• Member Countries should also give due attention to convert the brain

drain of highly skilled people into brain gain

– by facilitating the national Diaspora to return to their countries.

• Pharmaceutical industry is a research intensive industry.

– proper R&D facilities should be built and

– provide necessary financial resources to develop an innovative pharmaceutical

industry in the member economies.

11

Policy Recommendations - II

• At the intra-OIC level:

– Member Countries should collaborate with each other by sharing expertise for

the development of pharmaceutical industry.

– Students mainly from LDCs can be enrolled in pharmaceutical related academic

d isciplines in member countries with substantial pharmaceutical base [like

Turkey, Egypt, Jordan and Malaysia] to equip them with necessary knowledge

and expertise in this field .

• At the international level:

– Member Countries should collaborate with the international agencies like WHO,

UNCTAD and World Bank to benefit from their expertise and financial resources

to build their domestic pharmaceutical industry.

12

13

T H A N K YO U . . !

M A Z H A R H U S S A I N

R E S E A R C H E R

S E S R I C

m h u s s a i n @ s e s r i c . o r g

w w w . s e s r i c . o r g