GENERICS
Opportunities & Challenges
in the MENA Region
Secretary General JAPM
Arab German Health Forum
Hamburg 20- 21 October, 2009
Hanan Sboul
Maisa Saket General Director JPDAND
Pharmaceutical market overview
Jordanian Pharmaceutical Industry
Challenges
Opportunities
OUTLINE
2
Pharmaceutical market in MENA region
Total Pharmaceutical Market exceeds US$ 12.0 billion
2% of the world’s pharmaceutical market
Total Population 340 million
Total GDP 1.911 US$ Trillion (2008)
Approx. 3% of the world’s GDP
3
280 pharmaceutical manufacturers producing mainly generics in different therapeutic categories
Antibiotics are the leading therapeutic class
followed by NSAID’s
Demand for pharmaceuticals is largely covered
by imports
Governments are the major health care provider
4
Pharmaceutical market in MENA region
Total Pharmaceutical Market2008*
Country Total Market
(US$)Share % No. of Manufacturers
KSA 2,420,000,000 20.06% 17
Egypt 1,980,000,000 16.41% 68
Iraq 1,300,000,000 10.77% 10
GCC 1,198,000,000 9.93% 7
Algeria 1,020,000,000 8.45% 17
Morocco 920,000,000 7.62% 23
Syria 710,000,000 5.88% 60
Tunisia 519,000,000 4.30% 27
Yemen 500,000,000 4.14% 6
Libya 430,000,000 3.56% 1
Lebanon 375,000,000 3.11% 6
Sudan 302,000,000 2.50% 16
Jordan 202,554,500 1.68% 16
Palestine 190,000,000 1.57% 6
Total 12,066,554,500 280
5* Source: AUPAM
MENA Pharmaceutical Markets
$2,420
$1,980
$1,300$1,198
$1,020 $920$710
$519 $500 $430 $375 $302 $325$190
KS
A
Egypt
Iraq
GC
C
Alg
eria
Moro
cco
Syria
Tunis
ia
Yem
en
Lib
ya
Lebanon
Sudan
Jord
an
Pale
stine
MENA markets by value (US$ million)*
6
* Source: AUPAM
$18 $20 $21 $22$23
$25 $27 $28$30 $31
$34
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Average consumption per capita in the MENA Countries *
* Source: AUPAM
Average Consumption per Capita in MENA
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$450
$235 $229
$114$88
$34 $38$19 $13
North America Japan Western
Europe
Israel Australia Central and
Eastern
Europe
Latin America MENA
Countries
China /
Eastern Asia
Indian sub
continent
Africa
(southern)
$911 $808 Average consumption per capita in the world (2007) *
Average Consumption Per Capita in the world
8
* Source: AUPAM
MENA pharmaceutical exports are almost US $1 billion. Jordan is the leader with projected exports of $ 480 millions in 2009
Going forward, Jordanian pharmaceuticals due to are widely accept due to
– Quality and Value
– Good prices
– Manpower, direct sales operations in export markets
MENA Pharma Exports
Jordan leading the MENA pharmaceutical exports
$359
$300
$110
$80
$210
$15
Jordan Egypt Saudi UAE Syria Lebanon
Value of exports 2007 (US$ million) *
* Source: AUPAM
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Jordanian Pharmaceutical Industry
Started in 1962
16 companies, 17 branches outside Jordan
Export oriented; to 66 export markets. Major export markets
are Saudi Arabia, Algeria, Iraq, Libya & the Gulf
Local market share; 50% in volume & 28% in value
Essential for Jordan economy; employment & export
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Jordanian Pharmaceutical Industry
Employment
5310 employees & 3000 in supporting industry
99% Jordanians
39% are females
31% hold degrees
Investment
$400m in Jordan & $200m outside
Branches in 17 countries
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Jordanian Pharmaceutical Industry
Exportation
75% for export
Around 60 countries
$490 m in 2008
20% annual increase
8% of Jordan exports
Positive trade balance
12
13
Pharmaceutical exports, million $
0
50
100
150
200
250
300
350
400
450
500
2000 2002 2004 2006 2008
180200
235200
250280
300
432
490
Target 1 bn USD in 2011
14 10/17/2009 14
Export markets for Jordanian
Pharmaceuticals 2008
15 10/17/2009 15
Strategic alliances with international firms
Manufacturing costs
Cost of compliance
Strong competition
Emerging local industries
Price control and price erosions
Fragmented regulatory regimes
Challenges
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Population growth- higher than average (2.7% ) Growing economies, high purchasing power Focus on healthcare and increased spending on healthcare
facilities by governments Mandatory health insurance schemes Demographic trends: increase in life expectancy, literacy rates
and prevalence of life style related diseases like diabetes & cardiovascular, diseases which constitute around 18-22 percent of total pharmaceutical volume.
Opportunities – I
Growth Drivers in MENA
17
Opportunities – II
Access to markets through licensing arrangements, joint ventures and partnerships with local firm, with
Skilled labor, relatively lower wages
Lower manufacturing costs compared to US & EU
High standards manufacturing sites; GMP compliant
Accumulated regulatory and marketing expertise
18
o Biotechnology products
o Hormones
o Injectables
Opportunities – III
New therapeutic areas are key growth drivers, such as
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Thank You
The Jordanian Association of Pharmaceutical Manufacturers www.japm.com