Summary
The pharmaceutical market in Egypt was valued at about US$1.14bn in 2005, with healthcare and pharmaceutical expenditure accounting for 3.7% and 1.5% of GDP, respectively. However, as BMI cautions in its recently released Egypt Pharmaceuticals & Healthcare Report, stringent government pricing controls that fail to compensate for inflation will restrict future market growth. This is especially damaging, as the country is reliant on imports of raw materials. Currency fluctuations in the past have resulted in steep cost increases, although the Egyptian pound has been more stable of late against the US dollar.
About 7,600 drugs are manufactured locally, which accounts for about 93% of the domestic consumption. Egypt is the largest producer of pharmaceutical products in the region, with output estimated at some US$900mn. Research-based drugmakers account for approximately 65% of the total drug output in the country, of which 30% is through direct production, while sub-licensing to local companies accounts for 35%.
The drug registration system in Egypt has traditionally been convoluted and bureaucratic, although this is set to become a thing of the past with the authorities seeking to streamline the process. Currently, foreign drugmakers can wait up to three years to gain marketing approval for a drug. By speeding up the registration system, it is hoped that legitimate drugs will gain a greater share of the market, with the trade in fake and sub-standard products subsequently falling.
BMI's adjusted Business Environment Rankings for the Middle East reveal that Egypt is in 10th place ahead only of Lebanon Iran, Nigeria. This is primarily due to forecasts of sluggish market growth, coupled with the country's poor intellectual property regime. Egypt's large domestic manufacturing industry also acts as a barrier for investment, although the sheer size of the market, in regional terms, does offer some incentive.
Key Benefits of Report
- Rely On Our Independent 5-Year Forecasts As A Benchmark
to test other views - a key input for successful budgetary and strategic business planning.
- Target Business Opportunities & Risks
through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments
- Exploit Latest Competitive Intelligence & Company SWOTS
on your competitors and peers through company rankings by sales, market share and ownership structure – includes multinational and national companies.
Scope of Report
Executive Summary & Industry SWOT
An at-a-glance perspective on latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The SWOT outlines strategic factors which affect BMI’s forecast analysis, and taken together with BMI’s Economic and Business Environment SWOTS, give a complete overview of market climate.
Market Summary
Outline of market characteristics, growth factors, leading therapeutic segments and a competitivness of the market.
Regulatory Regime
Guide to and analysis of country intellectual property developments and pricing & reimbursement issues, which constitute the regulatory make-up of the market.
Industry Developments
Focus on government healthcare reforms, epidemiological trends, company M&As, product launches, market entries, FDI activity, R&D and patent legislation.
5-Year Industry Forecast
5-Year Forecasts to end-2010 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
- Drug market expenditure (US$bn); drug expenditure per capita (US$); as % of gdp
- Prescription drug market (US$bn)/as % of total market; sales by alimentary tract/metabolism; antibiotics, cardiovascular, central nervous system, oncology, musculoskeletal and respiratory system
- OTC market (US$bn)/as % of total market (sales by analgesic, cough and cold, digestives, skin treatments, vitamins and minerals)
- Generics market (US$bn)/ as % of total market
- Health expenditure (US$bn, % of gdp and per capita); public sector health expenditure as % of total; number of hospitals; beds, hospital admissions, doctors, births and deaths per 000 population
Forecasts based on bespoke BMI economic modelling, using historical data sets of macroeconomic and industry variables to derive rigorous statistical relationships, anchored in advanced linear regression techniques.
5-Year Macroeconomic Forecasts
BMI forecasts for all headline macroeconomic indicators, including:
Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against US$, government expenditure, external debt
Competitive Landscape & Profiles
Intelligence on the market position of major MNC power houses and indigenous companies. BMI profiles key research-based companies. Company SWOTS are provided for all key strategic players, complete with a company activity overview, its leading products and analysis of business opportunities.
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