Algeria Pharmaceuticals and Healthcare Report Q4 2008

Summary

Algeria remains a key market in Africa, despite dropping to equal 12th place with Nigeria. It is the secondlargest African country by territory, and is modernising its healthcare system through oil and gas revenues, which have risen considerably in recent years. Despite this increase in revenues the standard of healthcare provision across the country is uneven.

The main attractions of the Algerian market are it's relatively large and young population (Algeria's population is in excess of 34mn), its high dependence on imported medicines and steady forecast growth are key attractions.

BMI forecasts that the value of the Algerian market will be US$5.39bn. Generics will continue to represent the bulk of consumption in terms of volumes. This is especially likely since the Ministry of Health and Population has implemented measures that mean that as a condition of receiving an import licence, medicine importers must pledge that 45% of their imports will be generics. However, with aims for World Trade Organisation (WTO) accession, it is likely that conditions for multinationals will improve and gradually result in the further erosion of their market value share by patented drugs.

Algeria was been included in BMI's Business Environment Ranking table for Q308 for the first time. It shares 12th place with Nigeria. Algeria is found above other African markets in the table, namely Kenya and Zimbabwe; however, it is far behind the continent's most developed market South Africa. Algeria's score for risks to potential returns is negatively impacted by the government's strong progenerics stance and shortcomings of the country's intellectual property rights (IPR) regime. The country's excessive red tape and corruption are also viewed with concern, as are certain macroeconomic indicators. On a positive note, the forecast pharmaceutical value growth and rising numbers of urban dwellers are factors in favour of local investment, as is the fact that the country is making progress towards WTO membership.

Pharmaceutical market growth over the next five years will be stimulated by the continuation of the US$2bn healthcare modernisation 20052009 programme, which envisages the building of numerous hospitals and clinics. Authorities are aiming to improve healthcare access. Adequate provision of health services is a challenging proposition, given the vast inhospitable areas of the country. The World Bank has warned that projects should be implemented gradually and that the government should return to the viable level of spending for the longer term.

Illustrating the above situation, local press in October 2007 revealed that French pharmaceutical major SanofiAventis is considering creating a local manufacturing facility in Algeria, which would be engaged in the production of generic medicines.

Contents

• Executive Summary
• Algeria Pharmaceuticals And Healthcare Industry SWOT
• Pharmaceutical Business Environment Ratings
• Limits Of Potential Returns
• Risks To Realisation Of Returns
• Algeria Market Summary
• Regulatory Regime
• Trade Agreements
• Intellectual Property Environment
• Intellectual Property Shortcomings
• Pricing And Reimbursement Environment
• Industry Trends And Developments
• Epidemiology
• Healthcare Sector
• Domestic Pharmaceutical Sector
• Pharmaceutical Retail
• Foreign Pharmaceutical Sector
• Biotechnology And Research
• Medical Devices
• Industry Forecast Scenario
• Overall Market Forecast
• Key Growth Factors Industry
• Key Growth Factors Macroeconomic
• It's Oil Or Nothing
• Enjoying The Gold Rush
• Steady Public Sector
• Risks To Outlook
• Patented Drug Market Forecast
• Generics Market Forecasts
• OTC Market Forecast
• Export And Import Forecasts
• Other Healthcare Data Forecasts
• Key Risks To BMI's Forecast Scenario
• Competitive Landscape
• Company Profiles
• Leading Multinationals
• SanofiAventis
• GlaxoSmithKline (GSK)
• Pfizer
• Novartis
• Merck & Co
• Leading Indigenous Manufacturer
• Groupe Saidal
• BMI Forecast Modelling
• How We Generate Our Pharmaceutical Industry Forecasts
• Pharmaceutical Business Environment Ratings Methodology
• Ratings Overview
• Weighting
• Sources
• List of Tables
  • Table: Middle East And North Africa Pharmaceutical Business Environment Ratings
  • Table Algeria Top 10 Causes Of Death For All Ages (2
  • Table: Algeria's Drug Expenditure And Prescription Market Indicators, 20062012 (DZDmn unless otherwise stated)
  • Table: Algeria's Health Expenditure, 20032012 (US$mn unless otherwise stated)
  • Table: Algeria Economic Activity
  • Table: Algeria's Patented Drug Market, 20032012
  • Table: Algeria's Generics Market Indicators, 20032012
  • Table: Algeria's OTC Market Indicators, 20032012 (DZDmn unless otherwise stated)
  • Table: Algeria's Pharmaceutical Trade Indicators, 20032012 (US$mn)
  • Table: Algeria Other Healthcare Data And Forecasts, 20032012
  • Table Leading Pharmaceutical Companies in Algeria
  • Table: Pharmaceutical Business Environment Indicators
  • Table: Weighting Of Components