Entry Strategy of the Indian Pharmaceutical Companies in Africa, CIS and the Middle East
50 Pages Posted: 18 Oct 2012 Last revised: 12 Jun 2014
Date Written: September 14, 2012
The social, economic and demographic context, in which the global pharmaceutical industry functions, is altering. The already developed economies, with escalation in healthcare expenses are looking to rein in healthcare disbursements.
In developing economies as Africa, CIS & Middle-East the pharmaceutical industries are also undergoing a phase of dynamic change. The changes are brought about by revolutionary initiatives taken by the government of the constituent nations and the world around. Rising health consciousness, prevalence of diseases, and healthcare expenditure will help the MENA (Middle-East & North Africa) pharma market to grow at a CAGR of approx. 9.5% during 2011-2013. The pharma market in this region will continue to grow due to the high demand of drugs, even though there are multitudes of political issues in the region, which can potentially harm the industry. It is found that Saudi Arabia, South Africa, Africa, Algeria, & Egypt are the main defining markets in the region, and they will continue to dominate the market in future also. However, other countries, such as the UAE, Nigeria, CIS, and Israel have a lot of untapped potential, which can be utilized by the pharma companies.
To capitalize on the opportunities in the Middle East & Africa pharma market, the multinational companies are looking to penetrate the market through individual or collaborative efforts. Joint ventures and other distribution agreements with the local companies will provide multinationals the advantage of having a better understanding of the market and its demands.
Emerging economies as India & China certainly, propose a beam of optimism for the global pharmaceutical industry. The product development skills and scientific talent in India are being increasingly sought after by the pharmaceutical MNCs to confront the trials of growth and innovation. Indian pharmaceutical companies are also watching to move ahead in the value chain and alter the perception of India as a low-priced manufacture base to that of a unpretentious intellectual contributor. Various policies being introduced are related to the strengthening of the IPR protection laws, providing incentives, and tax exemptions to the foreign and domestic companies, and improving the marketing & distribution channels as well.
Keywords: Indian pharmaceutical, MENA, CIS, Middle-East, entry strategy
Suggested Citation: Suggested Citation