Industry Trend Analysis - Regional Challenges Dictate Strategic Alignment - MAY 2017


BMI View : Pharmaceutical firms in MENA will continue to be challenged by macroeconomic difficulties. As highlighted in recent quarterly financial earnings, tough economic conditions as well as unfavourable currency scenarios in key markets threaten to weigh on pharmaceutical market growth. Mechanisms to control healthcare expenditure will add to the challenges facing pharmaceutical firms. Despite this, the region's commercial potential remains significant and presents an alluring opportunity for companies shifting their focus onto emerging market growth strategies. Strategic product launches, enhanced partnerships with local authorities, and diversified therapeutic development are key strategies being employed in MENA.

The Middle East and North Africa (MENA) region will remain a challenging, yet commercially attractive environment for multinational firms over the coming years. In evidence of a distinctly difficult business environment, the lasting effects of weak economic growth and low oil prices is having a visible effect on drugmakers' performance in the region.

Key Market Challenges

MENA: Subdued Growth In Key Markets
Hikma's FY Revenue By Region (USDmn)
Source: Hikma Pharmaceuticals, BMI

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