Egyptian Pharmaceutical Market 2022-2027
Egyptian Pharmaceutical Market 2022-2027
Pharmaceutical
Market Research
2022-2027
Pharmaconex Market Research 1
Table of Contents
Part. 1
Egypt General Overview
Egypt General Overview Pharmaconex Market Research 3
Location
Egypt is located in the northeast of Africa and the west of Asia. It is located in the transportation
hub of the three continents of Europe, Asia and Africa. It is the country with the largest population
in North Africa and Arab countries and a powerful country in economy, science and technology.
Civilization
One of the world’s earliest and greatest civilizations, with a unified kingdom first
surfacing around 7000 years B.C.
People Habits
• Egyptians are religious people, with more than 90% Muslims, 10% Christians.
• Famous profusions as Engineering, Medical field and agricultures.
Pharmaceutical Market
• Egypt has a strong manufacturing industry and is the largest producer
and consumer of pharmaceuticals in the MENA region.
• Behind only Saudi Arabia (USD 8.5 billion) within MEA, Egypt’s pharma
market has consolidated its position as the prime destination outside of
the Gulf with USD 6.3 billion in value in 2021.
Egypt General Overview - Population Pharmaconex Market Research 4
Source: Worldometer
Egypt General Overview - Diseases Pharmaconex Market Research 5
Diseases
One of the main drivers of the growth of the Egyptian pharmaceutical market
is the aging population and chronic diseases. The emergence of respiratory
diseases, heart diseases and cardiovascular diseases, especially in promoting the
development of high-value prescription drugs in Egypt.
Part. 2
Egyptian Pharmaceutical Market Overview
Egyptian Pharmaceutical Market Overview - Market Position in MEA Pharmaconex Market Research 9
APIs Market Egypt APIs Market Size and Growth Rate (2017-2022)
Export Status
However, the government encourages
360M
exports and reduces the trade deficit.
340M
Therefore, although the export base is low, the
320M export growth is expected to be faster than
300M that of Egyptian drug imports. Most exports will
continue to target other Middle East and North
280M
African markets, with a focus on Saudi Arabia,
260M the United Arab Emirates, Iraq, Sudan and
240M Jordan.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The Minister of health of Egypt announced
Source: COMTRADE
that many pharmaceutical production plants
Egypt Exports of pharmaceutical products was US are still under construction, many of which
$312.63 Million during 2021, according to the United will be built in industrial areas throughout the
Nations COMTRADE database on international trade. country. Exporting generic drugs is the main
Egypt Exports of pharmaceutical products - data, way for Egyptian companies to earn long-term
historical chart and statistics - was last updated on profits, especially in maintaining low prices,
August of 2022. which is very competitive.
Egyptian Pharmaceutical Market Overview - Drugs Pharmaconex Market Research 12
Drugs
Source: Bepac
Egyptian Pharmaceutical Market Overview - Medical Expenditure Pharmaconex Market Research 13
Medical Expenditure
Health care expenditure (percentage of GDP) 4.7 %
Per capita medical expenditure (PPP) 582 international dollars
General government expenditure on health as a share of current health expenditure 27.8 %
Percentage of total government medical expenditure to total government expenditure 4.7 %
Out of pocket expenditure as a share of current health expenditure 62.7 %
Total health care expenditure 12,357 million US dollars
Social health insurance as a share of current health expenditure 7%
Voluntary health insurance as a share of current health expenditure 6.9 %
Per capita expenditure on government health care 36 US dollars
Per capita expenditure on general health administration at purchasing power parity (NCU/ USD) 176 US dollars
Private health care expenditure (the percentage) 71.2 %
Egyptian Pharmaceutical Market Overview Pharmaconex Market Research 14
Egypt has a strong domestic pharmaceutical industry, with about 200 pharmaceutical
companies, of which less than 10 are multinational companies with local production
bases.
Egypt has the largest drug manufacturing base in the Middle East & North Africa,
accounting for nearly 30% of the regional market.
The drugs produced in Egypt can meet nearly 93% of its local demand for
medicine, with 7% consisting of highly specialized pharmaceuticals that are
not locally produced.
5% of domestic drugs are exported to the Arab region, Africa and some
European countries.
Multinational corporations account for nearly 40% of local sales
through domestic manufacturing, and about 35% through licensing
agreements, while the remaining percentage represents generic
medicines produced by local companies.
In Egypt, the hospital channel is carrying the load and accounts
for 40% of the country’s sales.
Egyptian Pharmaceutical Market Overview - Supply & Demand Pharmaconex Market Research 15
Egypt spends a lot on medicine. 56% of health spending. Drug purchases at pharmacies
account for nearly half of out-of-pocket payments. Drug prices are administered by the
Ministry of Health’s Central Agency for Pharmaceutical Affairs (CAPA), which sets mandatory
retail prices for drugs.
Almost all raw materials for local manufacturing need to be imported. Egypt imports
about $600 million in finished medicines and $1.8 billion in active ingredients annually.
Multinational companies set up factories locally, but 15-20% of medicines are imported
and 80-85% are produced locally. In Egypt, about 70% of medicines are generic and
domestically produced.
Given the lack of a comprehensive health-insurance system in Egypt, the
pharmaceuticalsales are based on out-of-pocket expenditures as consumers
find self-medicating to be the cheapest form of treatment. Pharmaceutical
sales are divided into prescription drugs and over-the-counter (OTC) drugs.
Sales of patented drugs will outgrow that of generic drugs due to the
domestic industry’s heavy reliance on importing raw materials, which
have surged in the past year. It should be noted, however, that the
market could eventually shift favour towards generics, given their
cheaper price tags, and the government’s willingness to maintain
cost-containment measures.
Market Segmentation
Classification of
Pharmaceutical Enterprises
85
90
80
11% 70
70
60
7%
50
40
30
82% 30
20
10 8
0
Private Company Public Corporation
Private Company Public Corporation Joint Venture Regional Agent Market Share
Egyptian Pharmaceutical Market Overview - Sales Channel Pharmaconex Market Research 17
Sales Channel
Drug Distribution Pharmaceutical Retail
There are two channels for the sale of drugs Pharmacies deal with foreign companies, state-
in Egypt: Consignment and self-supporting. The owned enterprises and wholesalers. Although there
main channel is the sale of drugs through the sales are a few chain stores, most pharmacies are public.
network of drug distribution companies. For example, El-Ezaby, which was founded in 1975
and belongs to Multipharma group, aims to become
At present, the largest drug distribution company a leading pharmacy chain in the Middle East.
in Egypt is Egydrug, a state owned Egyptian drug
company, and UCP, a private joint distribution Other chain stores include Misr Pharmaceuticals
company. and Seif Pharmaceuticals, which are part of the Seif
Group and mainly target high-income people.
Egydrug has the largest sales network in China,
with sales points all over the country. And the
company pays the manufacturer in cash, while
private companies generally need to sell on credit.
Although the agency fee charged by the state is
higher than that charged by the private sector,
many companies prefer to use Egydrug as an agent.
Egyptian Pharmaceutical Market Overview - Pharmaceutical Companies Pharmaconex Market Research 18
Pharmaceutical Companies
Domestic: leading local manufacturers include Eipico, Amoun
Pharma, Pharco, MUP and Sedico. Few local pharmaceutical
manufacturers in Egypt are completely state-owned, while the
rest are partially or completely privatized. Public production is
represented by HoldiPharma.
Source: Bepac
Egyptian Pharmaceutical Market Overview - Local Manufacturers Pharmaconex Market Research 19
Local Manufacturers
Pharco Pharmaceuticals is the founder of the corporation and is the second private Egyptian shareholding
pharmaceutical company established in 1984. It started production in 1987 formulating, producing and
marketing about 450 brands, generics, branded generics and licensed products to date.
Pharco Pharmaceuticals has scientific offices; KSA, Yemen, UAE, Bahrain, Lebanon, Libya and Romania and
exports to 50+ countries. Throughout the years Pharco Pharmaceuticals has created several brands which have
become market leaders in both local and international markets; Gratisovir 400mg, Rani effervescent, Fawar
Fruit, Ciprofar 500 MG tablets, Spasmo Digestin, Delcophen amp, Royal jelly, Uricol effervescent, Urinex caps,
Bilichol caps, Mirazid and Baby Drink. Currently a major cardiovascular line is up to date.
EVA Pharma has been established since 1997. It is one of the leading
pharmaceutical Egyptians companies in MENA region that is built on
the heritage of Les Laboratories Delta, the second oldest pharmaceutical
Egyptian company. Recently, EVA Pharma becomes one of the leading
branded generic pharmaceutical manufacturers in the MENA region with
a CAGR (Compound Annual Growth Rate) of 22.5% over the last three years
enabling EVA Pharma to be one of the fastest-growing pharmaceutical
companies in the region.
Egyptian Pharmaceutical Market Overview - Local Manufacturers Pharmaconex Market Research 21
Manapharma, is considered one of the top and oldest companies in Egypt working as
agent and exclusively representing many international API companies from the US,
Europe and Asia over the past 35 years. In this regards, Manapharma supports and
supply the majority of local pharmaceutical finished products manufacturers in Egypt
with APIs and Excipients.
Part. 3
Regulatory Bodies in Egyptian Pharmaceutical Market
Regulatory Bodies in Egyptian Pharmaceutical Market Pharmaconex Market Research 24
Regulatory Bodies
The regulatory framework leading
the pharmaceutical industry in
Egypt has been entirely restructured
according to the Egyptian Law
No. 151 of 2019, which declared the
establishment of the Egyptian Drug
Authority (EDA) as its own entity and
the Egyptian Authority for Unified
Procurement, Medical Supply and
Technology Management as a
separate economic unit , aiming for
conceptualizing, developing, and
strengthening the healthcare system
and pharmaceutical industry in Egypt.
EDA
• The Egyptian Drug Authority (EDA) is established as a public service authority affiliated to the Prime Minister to be responsible
for all drug related matter.
• EDA will be the regulatory authority responsible solely for the registration, licensing, inspection and supervision of all
pharmaceutical and cosmetic products, medical equipment and raw materials used in their manufacturing.
The main responsibilities of EDA will be, among others, the following:
Issuance of the necessary licenses for all pharmaceutical entities.
Issuance of the operation licenses for factories of pharmaceutical products and
medical equipment.
Licensing private laboratories that are working in the pharmaceutical field.
Examination of all pharmaceutical, biological products like medicines, cosmetics,
insecticides, vaccines, serums, pharmaceutical devices, tools, medical lenses,
diagnostic indicators in order to insure their quality, safety, effectiveness and
compliance with the approved.
Setting the rules and procedures for importation, exportation and pricing of all
pharmaceutical products and medical equipment.
Customs release of all imported pharmaceutical products and medical equipment.
Licensing locally manufactured products and equipment.
Issuance of the Egyptian Pharmacopeia.
Inspection of all pharmaceutical entities and their officers and taking necessary
legal actions against violations.
Pharmaconex Market Research 27
Part. 4
Egyptian Pharmaceutical Market Dynamics
Egyptian Pharmaceutical Market Dynamics - Opportunities Pharmaconex Market Research 28
Opportunities
1 Rapid population growth and urbanization. From 1986
to 2022, the population of Egypt more than doubled, from 48
million to 106 million, ranking 14th in the world. The expanding
market demand created opportunities for pharmaceutical
companies.
Risks
• Insufficient product innovation and lack of international
qualification certification.
Part. 5
Egyptian APIs Market Forecast
Egyptian APIs Market Forecast - Revenue and Growth Rate Pharmaconex Market Research 32
Egypt APIs Revenue and Growth Rate (2022-2027) The Egypt APIs revenue will be
steadily increase in the future, and it
3500.00 3116.11 3252.76 7.00% is estimated to reach 3252.76 million
2723.73 2858.25 2999.72 USD in 2027. The growth rate has
3000.00 2602.73 6.00%
reached a peak in 2022, and it will
2500.00 5.00% gradually slow down in the next few
years.
2000.00 4.00%
1500.00 3.00%
1000.00 2.00%
500.00 1.00%
0.00 0.00%
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