Industry Trend Analysis - High-Risk Market To Shape Drugmaker Opportunities - AUG 2017
BMI View: The business environment in Iran will remain decidedly difficult, limiting the incentive for multinational drugmakers to invest in the country. As a consequence, we expect the country's competitive landscape to evolve, with domestic firms capturing a larger share over a multi-year horizon, as the reliance on pharmaceutical imports falls gradually.
Multinational company activity will remain limited in Iran's high risk pharmaceutical market. Underpinned by a lack of patent respect, high levels of corruptive practices, and entrenched bureaucracy, these factors will limit any large-scale uptick to foreign investment into Iran's pharmaceutical sector over the coming years. Novo Nordisk is the only major multinational company to announce an interest to produce locally in Iran's pharmaceutical market since the removal of sanctions in 2016.
Elevated Risk Profile Undermines Rewards
|A High Risk Market In MENA|
|MENA: BMI's Innovative Pharmaceutical Risk/Reward Index|
|Note: Scores out of 100; higher score = higher reward/lower risk. Source: BMI's Innovative Risk/Reward Index|