Industry Trend Analysis - Attractiveness For Drugmakers Marred By Small Market Expenditure - NOV 2017

BMI View : Tunisia's pharmaceutical market will continue to be met with challenges that ensure multinational drugmakers remain wary of significant investment plans. A progressively improving business climate is having a notable impact on developments within the pharmaceutical sector and wider economy ; however , the actual benefits will take time to materialise. Crucially, higher growth opportunities will present themselves within the generic medicines sector, whil e the high industry-associated risk profile will deter any significant investment by multinational firms.

The Tunisian government's efforts to boost the country's attractiveness to international investors is a positive step for Tunisia's economic outlook and will have wider ramifications extending to the pharmaceutical sector. To this end, reducing regulatory barriers, simplifying procedures for foreign direct investment and tax exemptions on profits for major projects have each been implemented under the Tunisian government's new investment code (adopted in H117). While these steps represent important considerations among multinational drugmakers, we do not expect a significant rise in company interest subsequent to these changes. There has, however, been some appetite from international firms and it certainly highlights the longer-term potential held by Tunisia's pharmaceutical market.

Small But Fast-Growing

Large Regional Players Weaken Tunisia's Potential
f = BMI forecast. Source: UN Comtrade Database (DESA/UNSD), BMI

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