Dubai – Masaader News
Saudi tops ME&A pharma market value at $9.1 billion
The rapid growth of South Africa’s pharmaceutical market is set to continue according to participants in the first Advisory Board meeting for the inaugural CPhI Middle East & Africa, which takes place at the Abu Dhabi National Exhibition Centre (ADNEC) on 3-5 September 2018.
South Africa’s pharmaceutical market, which will be worth $7 billion by 2020, is the largest in sub-Saharan Africa, growing at a Compound Annual Growth Rate (CAGR) 0f 7.4% since 2014 and is set to continue its trajectory following a government commitment to spend $3 billion on national health programmes alone in its 2018 budget.
Underpinned by the country’s National Department of Health Performance Plan, South Africa is working to achieve a number of landmark targets by 2030. These include raising life expectancy from 57 years currently, to 70 years; improving TB prevention and cure; reducing maternal, infant and child mortality; reducing the prevalence of non-communicable diseases; and health system reform.
Highlighting the business opportunities, major multinationals already operate and manufacture in South Africa and the government is actively courting more through tax exemptions, reduced land prices, and other incentives. Furthermore, the ongoing implementation of National Health Insurance (NHI), is due to be complete by 2025.
Claudia Palme, CPhI Advisory Board Member and Managing Director, of management consultancy, 55east said: “In general terms, growth is measured by percentage each year, and in that there is no other place with growth that matches Sub-Saharan Africa. South Africa) has developed rapidly over the last two decades and population growth has soared.
“Any pharmaceutical firm a taking sustainable, responsible and practical approach to the South African market can enjoy this massive growth dynamic. The time to move into this high growth market is now in order to establish and position to reap the benefits, in absolute value terms, in five to ten years’ time,” she added.
Palme is joined on the CPhI Advisory Board by Manel Chikh, Board Member and Co-Founder and CEO of Zaphyr Pharmaceuticals; AbdelFattah Irsheid, Area Manager Middle East, Laboratorios Ordesa; Firas Nabulsi, Business Development Director – MENA, Aspen Healthcare; Mustafa Rasheed, Head of Professional Services, Client Education, Clarivate Analytics; and Jerome Carle, General Manager, Julphar.
Across the wider Sub-Saharan region, research firm Frost & Sullivan predicts business opportunities will be worth $45 billion by 2020, primarily driven by the unique health and medical challenges present across the continent, including high incidences of parasitic illnesses and lifestyle diseases, as well as malaria, cholera, yellow fever and tetanus. Malaria and AIDs are on course to account for 40% of total pharmaceutical revenues to 2020.
However, in the Middle East region, it will be Saudi Arabia recording the highest value of annual pharmaceutical sales by the end of this decade, at over $9.1 billion according to Frost & Sullivan. Egypt is on track to follow, with sales of $8.4 billion forecasted and South Africa third with estimated sales of over $7 billion within less than three years.
“South Africa faces a number of unique health and medical challenges. However, growing affluence and the wider adoption of westernised lifestyles is compounding the problems and bringing a rise in cases of obesity, diabetes and cardiovascular disease. This has resulted in increased demand for chronic prescription drugs,” commented Cara Turner, Brand Manager – Pharma, UBM.
“While the country has made several commitments to preventative medicine a range of new drugs and therapies will be required to combat the effects of these diseases in the interim,” she added.
CPhI Middle East & Africa, which is supported by the Abu Dhabi Chamber of Commerce and Industry, Dubai Science Park, ExpoLink, the National Committee for Pharmaceutical Industries and the SAARPE Association, is the region’s leading platform bringing together pharma product manufacturers, suppliers and buyers from every step of the pharma supply chain, including drug research and discovery to finished dosage.
Over 250 local, regional and international exhibitors from more than 30 countries are expected to attend, indeed demand has been so robust that an additional 300 square metres (6%) of space has been added to the exhibition floor – 4,000 pharma professionals are expected to participate in the three-day show, around half of which will come from the MEA region.
CPhI Middle East & Africa takes place from 3-5 September 2018, at ADNEC in Abu Dhabi, with its co-located events ICSE, P-MEC, InnoPack and FDF.