GENERICS

Opportunities & Challenges

in the MENA Region

Secretary General JAPM

Arab German Health Forum

Hamburg 20- 21 October, 2009

Hanan Sboul

Maisa Saket General Director JPDAND

Pharmaceutical market overview

Jordanian Pharmaceutical Industry

Challenges

Opportunities

OUTLINE

2

Pharmaceutical market in MENA region

Total Pharmaceutical Market exceeds US$ 12.0 billion

2% of the world’s pharmaceutical market

Total Population 340 million

Total GDP 1.911 US$ Trillion (2008)

Approx. 3% of the world’s GDP

3

280 pharmaceutical manufacturers producing mainly generics in different therapeutic categories

Antibiotics are the leading therapeutic class

followed by NSAID’s

Demand for pharmaceuticals is largely covered

by imports

Governments are the major health care provider

4

Pharmaceutical market in MENA region

Total Pharmaceutical Market2008*

Country Total Market

(US$)Share % No. of Manufacturers

KSA 2,420,000,000 20.06% 17

Egypt 1,980,000,000 16.41% 68

Iraq 1,300,000,000 10.77% 10

GCC 1,198,000,000 9.93% 7

Algeria 1,020,000,000 8.45% 17

Morocco 920,000,000 7.62% 23

Syria 710,000,000 5.88% 60

Tunisia 519,000,000 4.30% 27

Yemen 500,000,000 4.14% 6

Libya 430,000,000 3.56% 1

Lebanon 375,000,000 3.11% 6

Sudan 302,000,000 2.50% 16

Jordan 202,554,500 1.68% 16

Palestine 190,000,000 1.57% 6

Total 12,066,554,500 280

5* Source: AUPAM

MENA Pharmaceutical Markets

$2,420

$1,980

$1,300$1,198

$1,020 $920$710

$519 $500 $430 $375 $302 $325$190

KS

A

Egypt

Iraq

GC

C

Alg

eria

Moro

cco

Syria

Tunis

ia

Yem

en

Lib

ya

Lebanon

Sudan

Jord

an

Pale

stine

MENA markets by value (US$ million)*

6

* Source: AUPAM

$18 $20 $21 $22$23

$25 $27 $28$30 $31

$34

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Average consumption per capita in the MENA Countries *

* Source: AUPAM

Average Consumption per Capita in MENA

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$450

$235 $229

$114$88

$34 $38$19 $13

North America Japan Western

Europe

Israel Australia Central and

Eastern

Europe

Latin America MENA

Countries

China /

Eastern Asia

Indian sub

continent

Africa

(southern)

$911 $808 Average consumption per capita in the world (2007) *

Average Consumption Per Capita in the world

8

* Source: AUPAM

MENA pharmaceutical exports are almost US $1 billion. Jordan is the leader with projected exports of $ 480 millions in 2009

Going forward, Jordanian pharmaceuticals due to are widely accept due to

– Quality and Value

– Good prices

– Manpower, direct sales operations in export markets

MENA Pharma Exports

Jordan leading the MENA pharmaceutical exports

$359

$300

$110

$80

$210

$15

Jordan Egypt Saudi UAE Syria Lebanon

Value of exports 2007 (US$ million) *

* Source: AUPAM

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Jordanian Pharmaceutical Industry

Started in 1962

16 companies, 17 branches outside Jordan

Export oriented; to 66 export markets. Major export markets

are Saudi Arabia, Algeria, Iraq, Libya & the Gulf

Local market share; 50% in volume & 28% in value

Essential for Jordan economy; employment & export

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Jordanian Pharmaceutical Industry

Employment

5310 employees & 3000 in supporting industry

99% Jordanians

39% are females

31% hold degrees

Investment

$400m in Jordan & $200m outside

Branches in 17 countries

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Jordanian Pharmaceutical Industry

Exportation

75% for export

Around 60 countries

$490 m in 2008

20% annual increase

8% of Jordan exports

Positive trade balance

12

13

Pharmaceutical exports, million $

0

50

100

150

200

250

300

350

400

450

500

2000 2002 2004 2006 2008

180200

235200

250280

300

432

490

Target 1 bn USD in 2011

14 10/17/2009 14

Export markets for Jordanian

Pharmaceuticals 2008

15 10/17/2009 15

Strategic alliances with international firms

Manufacturing costs

Cost of compliance

Strong competition

Emerging local industries

Price control and price erosions

Fragmented regulatory regimes

Challenges

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Population growth- higher than average (2.7% ) Growing economies, high purchasing power Focus on healthcare and increased spending on healthcare

facilities by governments Mandatory health insurance schemes Demographic trends: increase in life expectancy, literacy rates

and prevalence of life style related diseases like diabetes & cardiovascular, diseases which constitute around 18-22 percent of total pharmaceutical volume.

Opportunities – I

Growth Drivers in MENA

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Opportunities – II

Access to markets through licensing arrangements, joint ventures and partnerships with local firm, with

Skilled labor, relatively lower wages

Lower manufacturing costs compared to US & EU

High standards manufacturing sites; GMP compliant

Accumulated regulatory and marketing expertise

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o Biotechnology products

o Hormones

o Injectables

Opportunities – III

New therapeutic areas are key growth drivers, such as

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Thank You

The Jordanian Association of Pharmaceutical Manufacturers www.japm.com

info@japm.com