MUSCAT, JUNE 3 - The emergence of a strong generics sector is accelerating growth in the Middle East and Africa’s pharmaceutical industry, according to participants in the first Advisory Board meeting for the inaugural CPhI Middle East & Africa, which takes place in Abu Dhabi during September 3-5, 2018. Highlighting the government-driven opportunities for new players in the market, Claudia Palme, Advisory Board Member and Managing Director, 55east said: “The countries that have traditionally driven development in the past, such as Saudi Arabia, Algeria and the other Gulf States have agendas to further fuel access to healthcare and balance financial demands, while providing a high-level standard of care.
The less affluent countries in the region are looking to find solid, high-quality affordable specialty generics to upgrade their health care systems.”
Regional governments’ spending on pharmaceuticals is concentrated on addressing diabetes, heart disease and cancer caused by rising obesity rates, which have almost tripled since 1975.
Elsewhere, ageing populations — a result of better medical care earlier in life — require the introduction of new treatments and medicines and the region is also focused on reducing the number of stillbirths and introducing new vaccination programmes.
“Receiving a direct boost from government policy and the emergence of new age manufacturing facilities, the region’s generics sector has performed well over recent years. Domestic production accounts for approximately 45 per cent of drug consumption in the Middle East, with generics in the GCC alone valued at $1.55 billion in 2016, following CAGR of 15 per cent between 2009 and 2016,” commented Cara Turner, Brand Manager — Pharma, UBM.
In Africa, generics is one of the most vibrant sectors of the pharmaceutical market, worth $4 billion and expected to reach values of $18 billion by 2020, following annual growth of 22 per cent.
Further comparisons drawn from a new report from MarketLine predicts that the global generics market will achieve double-digit growth through 2021, following its 2016 market valuation of $318 billion.
MEA government incentives have actively encouraged local and regional manufacturers to scale up operations, resulting in larger product portfolios to fulfil national needs and reduce overall manufacturing overheads. Capitalising on the trend, US and EU firms are now entering the market with greater ease through contract manufacturing.
With an eye on growth markets, developers and researchers from outside the region are leveraging the MEA’s modern facilities to ease market access and reduce costs, compared to manufacturing in the EU.
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