Amsterdam, 29 May 2018: A new report by CPhI forecasts sizable changes ahead for the pharma markets in the Middle East and Africa over the next few years. It highlights recent regulatory changes, coupled with increased geopolitical stability and rising generics consumption as key drivers in transforming the prospects of pharma manufacturers in the region.
The CPhI Middle East and Africa report – released ahead of the inaugural edition of CPhI MEA (03-05 September 2018, Abu Dhabi) – has identified significant opportunities for a region that is often overlooked by much of international pharma. The event will attract leaders and key decision makers of the pharma industry from the Middle East and Africa, bringing the expertise and reach of the CPhI brand to the heart of this new pharma hub. Running alongside the exhibition, there will be content sessions on the latest trends, keynote addresses, and numerous networking opportunities.
Manufacturers in India look very well placed to capitalise thanks to the recent free trade deal with the GCC – amultinational partnership consisting of Bahrain, Oman, Saudi Arabia, Kuwait, the UAE and Qatar – which has significantly reduced trade barriers. Additionally, the GCC has also set in place a drug price harmonisation strategy in order to standardise drug prices within the region. The net result is an overall decrease in pricing across the region with generics consumption rising quickly. Reductions across multiple therapeutic areas are to be expected, and the process could even potentially impact drug prices of other non-GCC markets that refer to GCC prices.
The report notes that, with a stabilised political situation and gentrifying populations, there are sizable opportunities for manufacturers and CMOs in North Africa to potentially become licensed manufacturers of products. This will enable international companies to penetrate the regional market whilst reducing risk. Stringent registration and packaging requirements also increase the likelihood of local international partnerships rather than the direct import of generics.
One final trend, is that in light of the new opportunities, foreign direct investment by large pharma and generics companies is increasing with the goal of acquiring local manufacturing facilities – Sanofi’s recent entry in Saudi Arabia is just one notable example.
However, the report authors conclude it is by no means a simple task for internationals to enter this market. This is due to a variety of drag factors, such as vastly differing spending powers amongst its constituent nations, the lack of a centralised pharmaceutical regulator, and varying preferences for branded products versus generics. In order to achieve success, entry into the MENA market must be thoroughly planned and local insight sought.
