Industry Trend Analysis - A Challenging Yet Commercially Lucrative Region For Drugmakers - APR 2018

BMI View: The MENA pharmaceuticals market will remain key for drugmakers in the region, though the lasting headwinds of recent years will continue to challenge market growth and company performance. The region's long-term picture remains bright as the expansion of healthcare coverage mirrors a stronger demand for, and uptake of, medicines throughout the wider region - providing ample opportunities for innovative and generic drugmakers to expand their operations through new product launches and manufacturing agreements.

The Middle East and North Africa (MENA)'s USD31.8bn (EUR28.1bn) drug market is forecast to expand through to 2022, reaching USD41.5bn (EUR35.5bn) with a 6.9% compound annual growth rate (CAGR) at constant exchange rates (CER). The MENA region is made up of the sub-regions of North Africa and the Middle East. The USD8.8bn (EUR7.8bn) North Africa region will post a 7.9% CAGR through to 2022. The Middle East's USD23.0bn (EUR20.3bn) drug market will post a 6.5% CAGR over the same time period. MENA's pharmaceutical market will post a five-year CAGR of 5.5% in USD terms and 4.8% in euro terms.

Healthcare privatisation and greater public-private health partnerships (PPPs) should provide momentum for drug sales in the MENA region. Multinationals can be seen to be pursuing strategies of cooperation with domestic companies as well as setting up local manufacturing facilities across the region. The global volatility in oil prices remains a threat to our outlook, as governments are expected to be increasingly strict with regards to spending on pharmaceuticals, and generic substitution is likely to be heavily encouraged - challenging multinational drugmaker revenues.

Opportunities For Drugmakers Abundant Across Region
MENA: Pharmaceutical Market Forecast (USDbn)
f = BMI forecast. Source: BMI

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