Industry Trend Analysis - Underdeveloped Pharmaceutical Market Will Stem Drugmaker Interest - DEC 2017

BMI View : The Angolan pharmaceuticals and healthcare market will continue to perpetuate a high-risk environment for multinational drugmakers, with limited commercial rewards for those firms producing patented medicines. Opportunities exist for manufacturers willing to invest in a small yet unexploited market, yet the difficult operating environment and lack of clear regulation will ensure that generic drugmakers dominate the competitive landscape - the majority of which opt to export medicines into the market.

Angola's potential as a key player in the Sub-Saharan Africa (SSA) pharmaceuticals market will continue to be undermined by weak regulatory standards and the dominance of regional markets such as South Africa. The commercial incentives for foreign drugmakers are largely limited to generic medicines as the country's undeveloped pharmaceutical market and low spending power weakens the markets attractiveness for innovative medicine launches. We note that Angola certainly has the potential to improve its pharmaceutical manufacturing base and medicine supply through international collaboration - with favourable demographics and a rising chronic disease burden supporting a more positive longer term growth outlook.

Limited Drugmaker Rewards: Small Market, Low Affordability Levels

Angola's Is Positioned Unfavourably In SSA
2016: Pharmaceutical Market Size (USDbn, RHS) and Per Capita Medicine Expenditure (USD, LHS) In Select African Countries
Note: Red line represents SSA average; Numbers refer to regional ranking. f = BMI forecast. Source: BMI, UN Comtrade

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