Industry Trend Analysis - Regulatory Risks Highlight Challenges For Innovative Drugmakers - MAR 2018

BMI View : Regulatory inefficiencies are characteristic of Algeria ' s pharmaceutical market and will continue to challenge innovative drugmakers ' revenue earning potential. Slow progress in revising pricing regulations and import restrictions will hinder multinational investment, with reforms expected to take time to materialise. Despite this, Algeria remains one of the more attractive markets in the wider Middle East and Africa region, bolstered by its strategic geographical position, large market size, and favourable demographics.

Despite the slow progress in addressing several shortcomings in Algeria's regulatory and market access environment, it will remain a key pharmaceutical market for multinational drugmakers in the North Africa region. Underpinning its attractiveness to foreign drugmakers, Algeria's total medicine expenditure was valued at DZD434.0bn (USD3.85bn) in 2017, which positions itself as the second-largest in the Middle East and Africa (MEA) region behind Saudi Arabia.

Regulatory Uncertainty Creates Investment Risk

Algeria Fundamentals Are Attractive For Patented Drugmakers
2017: Pharmaceutical Market Expenditure (LHS, USDbn) and Per Capita Medicine Spend (RHS, USD)
Note: Largest ten pharmaceutical markets in value terms shown, Algeria in red. Source: UN Comtrade Database, BMI

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