Pharmaceutical Industry in OIC Member Countries Production, - PowerPoint PPT Presentation

Pharmaceutical Industry in OIC Member Countries Production, Consumption and Trade STATISTICAL, ECONOMIC AND SOCIAL RESEARCH AND TRAINING CENTRE FOR ISLAMIC COUNTRIES ORGAN IZA T I O N OF ISLAMIC COOPE RA T I O N 1

Pharmaceutical Industry • An indispensable part of health care system. • …develops, produces, and markets drugs…for use as medications. • innovation…….almost all epidemics and chronic diseases are curable today. Despite all progress….. • On average, 30% of the world population lacks access to life-saving medicines. – whereas, in some countries of Asia and Africa, the number may be as high as 50% . • …. the share of medicines in out-of-pocket health payments is ranging between 40 to 60% in majority of LDCs. 2

Pharmaceutical Production and Consumption Percent • Billion US$ One of the largest and rapidly 1000 10 growing global industries 800 8 – valued at US$ 942 billion 600 6 with a growth rate of 5.1% 400 4 over the previous year. 200 2 0 0 2006 2007 2008 2009 2010 2011 Total World Market Growth Over previous Year • Asia Both in terms of production Australia Latin America and consumption, it is highly Africa 7% 17% Japan concentrated in the developed 12% regions . North America 37% – North America (37%), Europe 27% Europe (27%) and Japan (12%) accounted for nearly 76% of global market Source: IMS Health Market Prognosis, May 2012. 3

Pharmaceutical Industry in OIC - I • Local production and consumption data is largely unavailable. • In member countries with data, local production satisfying a tiny share of demand. MENA : – Saudi Arabia : … biggest market| US$ 3.4 billion| …with 19 licensed manufacturer …. satisfying only 20% of demand (2011). – Egypt : one of the major flourishing markets| US$2.7 billion | ...with 119 licensed companies… satisfying more than 90% of demand (2011). – Jordan : 16 licensed manufacturers …. satisfying 50 % of demand (2010). – UAE: 8 manufacturing units…. satisfying 10 % of demand (2008). – Morocco: 40 licensed manufacturers……satisfying 70% of demand (2010) . – Tunisia: 47 licensed manufacturers……satisfying 45% of demand (2011) . 4

Pharmaceutical Industry in OIC - II Asia :  Turkey: .. largest OIC market| over 9 billion US$| ...ranked 7 th in Europe and 16th in world ... 134 licensed companies… satisfying 90% of demand (2011) .  Kyrgyzstan: 42 licensed manufacturers…satisfying 4% demand (2011) .  Malaysia: one of the fastest growing pharmaceutical market | valued over 1 billion US$| ... with 250 licensed manufacturers...satisfying 25-30% of domestic demand (2011) .  Indonesia: …a growing market| over US$ 2 billion| …with 204 domestic manufacturers ...satisfying 80% of demand (2010) .  Pakistan: | US $1.25 billion | …with 478 licensed manufacturers…satisfying 47% demand (2009) . 5

Pharmaceutical Industry in OIC - III Sub-Saharan Africa: – Nigeria: ...second leading producer in SSA | US$ 2.5 Billion market| … 146 licensed manufacturers...satisfying 25% of demand (2011) . – Senegal: 5 licensed manufacturers…satisfying 15% of demand (2011). – Côte d’Ivoire: 8 licensed manufacturers...satisfying 10% of demand (2011) . – Cameroon: 13 licensed manufacturers...satisfying 4% of demand (2010). 6

Pharmaceutical Trade • Pharma exports increased from US$ Exports 3.5 8 1.6 billion to US$ 2.4 billion. 7 3.0 6 2.5 – share in world exports remained 5 Billion US$ 2.0 Percent constant at about 1% . 4 1.5 3 1.0 – 2 share in developing countries 0.5 1 exports remained stable at 7% . 0.0 0 2006 2007 2008 2009 2010 2011 Total Exports Share in DCs Total Share in World Total Imports 25 28 • Pharma imports increased from US$ 20 13 billion to US$16 billion. 21 Billion US$ Percent 15 – share in world imports declined 14 10 from 4.4% to 3.4% . 7 5 – share in developing countries 0 0 imports decreased from 24% to 2006 2007 2008 2009 2010 2011 14% . Total Imports Share in DCs Total Share in World Total Trade balance deficit increased from US$ 11 billion to over US$13 billion 7

Intra-OIC Pharmaceutical Trade Exports • Intra-OIC pharma exports increased 2400 51 47 2100 from US$ 727 million to US$ 880 43 1800 39 1500 million. Million US$ 35 1200 Percent 31 900 – 27 share in OIC total exports 600 23 300 19 decreased from 45% to 36%. 0 15 2006 2007 2008 2009 2010 2011 Intra-OIC Exports OIC-Non OIC Exports Share of Intra-OIC in OIC Total Exports • Intra-OIC pharma imports increased Imports 24000 9 from US$ 886 million to US$ 1399 in 20000 2010 before declining to US$ 697 7 16000 million in 2011. 12000 5 Million US$ Percent 8000 – share in OIC total imports 3 4000 decreased from 6.5% to 4%. 0 1 2006 2007 2008 2009 2010 2011 Intra-OIC Imports OIC-Non OIC Imports Share of Intra-OIC in OIC Total Imports This underlines the fact that member countries rely heavily on non-OIC countries to satisfy their domestic demand. 8

Exports of Vaccines for Human Use • OIC countries are still accounting Share of OIC in Total World Vaccine Export Percent 0.7 0.65 for less than 1% of the total world 0.62 0.61 0.6 vaccine export s . 0.5 – OIC export s of vaccine recorded 0.36 0.4 only 131 million USD. 0.26 0.3 0.2 0.1 0 2006 2007 2008 2009 2010 • Intra-OIC export s of vaccine OIC's export to world Intra-OIC exports Million USD accounted for 36% of total vaccine 131 140 Thousands exports of OIC countries in 2009, 120 but it decreased to only 12% in 2010 100 80 60 49 40 18 16 20 0 2009 2010 9

Imports of Vaccines for Human Use • Share of OIC in Total World Vaccine Import OIC countries accounted for 8% in Percent total world vaccine import s in 2008 9 8.01 7.46 and this ratio remained above 7% 8 7.19 6.46 7 6.13 in the following two years. 6 5 – OIC import s of vaccine recorded 4 over 1 billion for the first time in 3 2009 and reached to almost 1.4 2 1 billion in 2010, which is 10 times 0 higher than their exports. 2006 2007 2008 2009 2010 OIC's import from world Intra-OIC imports • Intra-OIC import s of vaccine Million USD 1600 accounted for 1.8% of total OIC 1,397 1400 import in 2009, but decreased to 1,114 1200 only 1% in 2010. 1000 800 600 400 200 20 15 0 2009 2010 10

Policy Recommendations - I • Pharmaceutical production requires skilled human resources like scientists, pharmacists, biologists and lab technicians. – Member Countries should encourage and empower their education system to impart quality knowledge in academic disciplines like Chemistry, Biology, Medicines and other natural sciences. • Member Countries should also give due attention to convert the brain drain of highly skilled people into brain gain – by facilitating the national Diaspora to return to their countries. • Pharmaceutical industry is a research intensive industry . – proper R&D facilities should be built and – provide necessary financial resources to develop an innovative pharmaceutical industry in the member economies. 11

Policy Recommendations - II • At the intra-OIC level: – Member Countries should collaborate with each other by sharing expertise for the development of pharmaceutical industry. – Students mainly from LDCs can be enrolled in pharmaceutical related academic disciplines in member countries with substantial pharmaceutical base [like Turkey, Egypt, Jordan and Malaysia] to equip them with necessary knowledge and expertise in this field. • At the international level : – Member Countries should collaborate with the international agencies like WHO, UNCTAD and World Bank to benefit from their expertise and financial resources to build their domestic pharmaceutical industry. 12

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