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Pharmaceutical Sector Developments
in Egypt 
An overview of the pharmaceutical sector in Egypt and
recent challenges to higher sector growth and catalysts
for sustainable development.
(December 2006)
Members: LE250, Non-members: LE350, Int'l Price: $350
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(Summary in PDF)
(Sample Pages in PDF)
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Summary
Egypt's pharmaceutical sector holds the largest domestic
drug-manufacturing base in the MENA region, supplying
30% of the total market. The market is controlled by
private sector companies in terms of sales value. Most
multinationals are active in the local market. Not all,
however, have a direct manufacturing presence. GlaxoSmithKline
(GSK) is the largest producer in the local pharmaceutical
sector in Egypt while EIPICO is the largest Arab pharmaceutical
company in the MENA region.
The Egyptian pharmaceutical market is "factor-driven",
gaining its competitive edge from low labor and infrastructure
costs, which implies that pharmaceutical companies operating
in Egypt can produce low-priced products for mass consumption,
including export markets.
The market should attract sizable investments since
current consumption levels are low and growth potential
is high. Key drivers in achieving higher sector growth
and sustainability include pricing and regulatory reform,
public sector restructuring, export promotion and higher
healthcare expenditure.
The government still controls drug prices to ensure
that medication is affordable to the public. Nonetheless,
it is continuously working to improve the business environment
and make it more attractive to investors.
The development of many laws and regulations in the
economy in relation to the pharmaceutical sector has
allowed it to move further towards liberalization and
global integration. Data exclusivity is included in
the new IPR law as well as the TRIPS agreement.
Egypt is also implementing a reform program to modernize
its health system in partnership with international
organizations. The new system will aim to provide universal
coverage, with high-income sections of the population
subsidizing the remainder.
Continued sector modernization coupled with domestic
legislation increasingly coming into line with international
norms, should act as a catalyst for local market growth
in the future. The country also acts as a gateway to
other less penetrable emerging markets in the Middle
East, Asia and Africa.
SECTOR HIGHLIGHTS
- Egypt's pharmaceutical sector holds the largest
domestic drug manufacturing base in the MENA region,
supplying 30% of the total market." Egypt's pharmaceutical
sector holds the largest domestic drug manufacturing
base in the MENA region, supplying 30% of the total
market.
- Private sector sales constitute 92.4% of the pharmaceutical
market.
- EIPICO is the largest Arab pharmaceutical company
in the MENA region.
- Most multinationals are active in the local market.
- There are eight public sector drug producers operating
in the market.
- The local pharmaceutical market is dominated by
research-based products traded mainly by MNCs.
- Only three therapeutic groups constitute 54% of
total unit sales in the local market.
- The primary materials for liver therapy and amino
acids are manufactured in Egypt.
- The US is the second largest foreign investor in
Egypt's pharmaceutical sector.
- There are 20 pharmaceutical companies listed on
the stock exchange, nine of which are actively traded.
- The government still controls drug prices to ensure
that medication is affordable by the public.
- Data exclusivity is included in the IPR law as
well as the TRIPS agreement.
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