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