production, consumption and trade · pharmaceutical industry in oic - i • local production and...
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Pharmaceutical Industry in OIC Member Countries Production, Consumption and Trade
STATISTICAL, ECONOMIC AND SOCIAL RESEARCH AND TRAINING CENTRE FOR ISLAMIC COUNTRIES
O R G A N I Z A T I O N O F I S L A M I C C O O P E R A T I O N
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.
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Pharmaceutical Production and Consumption
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• One of the largest and rapidly
growing global industries
– valued at US$ 942 billion
with a growth rate of 5.1%
over the previous year.
• Both in terms of production
and consumption, it is highly
concentrated in the developed
regions.
– North America (37%),
Europe (27%) and Japan
(12%) accounted for
nearly 76% of global
market
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400
600
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1000
2006 2007 2008 2009 2010 2011
Percent Billion US$
Total World Market Growth Over previous Year
North America 37%
Europe 27%
Japan 12%
Asia Australia
Africa 17%
Latin America 7%
Source: IMS Health Market Prognosis, May 2012.
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| …with19 licensed
manufacturer…. satisfying only 20% of demand (2011).
– Egypt: one of the major flourishing markets| US$2.7 billion | ...with 119
licensed companies… satisfying more than 90% of demand (2011).
– Jordan: 16 licensed manufacturers …. satisfying 50 % of demand (2010).
– UAE: 8 manufacturing units…. satisfying 10 % of demand (2008).
– Morocco: 40 licensed manufacturers……satisfying 70% of demand (2010).
– Tunisia: 47 licensed manufacturers……satisfying 45% of demand (2011).
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Pharmaceutical Industry in OIC - II
Asia:
Turkey: ..largest OIC market| over 9 billion US$| ...ranked 7th 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 $1.25 billion | …with 478 licensed manufacturers…satisfying
47% demand (2009).
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Pharmaceutical Industry in OIC - III
Sub-Saharan Africa:
– Nigeria: ...second lead ing producer in SSA | US$ 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).
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Pharmaceutical Trade
• Pharma exports increased from US$
1.6 billion to US$ 2.4 billion.
– share in world exports remained
constant at about 1%.
– share in developing countries
exports remained stable at 7%.
• Pharma imports increased from US$
13 billion to US$16 billion.
– share in world imports declined
from 4.4% to 3.4%.
– share in developing countries
imports decreased from 24% to
14%.
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1.5
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2006 2007 2008 2009 2010 2011
Pe
rce
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Bil
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n U
S$
Exports
Total Exports Share in DCs Total Share in World Total
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7
14
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28
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25
2006 2007 2008 2009 2010 2011
Pe
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Bil
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S$
Imports
Total Imports Share in DCs Total Share in World Total
Trade balance deficit increased from US$ 11 billion to over US$13 billion 7
Intra-OIC Pharmaceutical Trade
• Intra-OIC pharma exports increased
from US$ 727 million to US$ 880
million.
– share in OIC total exports
decreased from 45% to 36%.
• Intra-OIC pharma imports increased
from US$ 886 million to US$ 1399 in
2010 before declining to US$ 697
million in 2011.
– share in OIC total imports
decreased from 6.5% to 4%.
15 19 23 27 31 35 39 43 47 51
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2006 2007 2008 2009 2010 2011
Pe
rce
nt
Mil
lio
n U
S$
Exports
Intra-OIC Exports OIC-Non OIC Exports
Share of Intra-OIC in OIC Total Exports
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24000
2006 2007 2008 2009 2010 2011
Pe
rce
nt
Mil
lio
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S$
Imports
Intra-OIC Imports OIC-Non OIC Imports
Share of Intra-OIC in OIC Total Imports
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This underlines the fact that member countries rely heavily on non-OIC
countries to satisfy their domestic demand.
Exports of Vaccines for Human Use
• OIC countries are still accounting for less than 1% of the total world vaccine exports.
– OIC exports of vaccine recorded
only 131 million USD.
• Intra-OIC exports of vaccine accounted for 36% of total vaccine exports of OIC countries in 2009, but it decreased to only 12% in 2010
0.36
0.61 0.62
0.26
0.65
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2006 2007 2008 2009 2010
Percent Share of OIC in Total World Vaccine Export
49
131
18 16
0
20
40
60
80
100
120
140
2009 2010
Million USD
Th
ou
san
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OIC's export to world Intra-OIC exports
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Imports of Vaccines for Human Use
• OIC countries accounted for 8% in total world vaccine imports in 2008 and this ratio remained above 7% in the following two years.
– OIC imports of vaccine recorded over 1 billion for the first time in 2009 and reached to almost 1.4 billion in 2010, which is 10 times higher than their exports.
• Intra-OIC imports of vaccine accounted for 1.8% of total OIC import in 2009, but decreased to only 1% in 2010.
6.13 6.46
8.01
7.19 7.46
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2006 2007 2008 2009 2010
Percent
Share of OIC in Total World Vaccine Import
1,114
1,397
20 15 0
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2009 2010
Million USD OIC's import from world Intra-OIC imports
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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 d isciplines 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.
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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
d isciplines 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.
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