Unlocking the Hidden Potential of Traditional Knowledge:Building Up a Phytopharmaka Market

Muscat, February 13 and 14, 2005

Intellectual Property and Economic Development Division

Roya Ghafele, e-mail: roya.ghafele@wipo.int

Phytopharmaka Market,

Chart 2 EXECUTIVE SUMMARY Tradition Medicine is a source of prosperity proper to Oman. However this intellectual asset

has so far not been fully exploited, mainly because Omani are not yet fully aware of the value of the wealth they own.

The market in Phytopharmaka and alternative medical treatment is globally boosting. Countries like China, India, Sri Lanka and Indonesia are fully profiting from this trend. There is no reason why Oman should not also benefit from this emerging market.

Adequate market development strategies need to integrate the IP dimension, but also look at issues related to benefit sharing. The three steps to develop the market in Oman consists of unlocking hidden assets, defining and understanding the market and positioning Omani products globally.

Practical next steps include developing government commitment, mobilizing funding, identifying relevant stakeholders, bringing them together to interact and starting to standardize healing practices to guarantee patients’ safety. Oman may also consider to study closer Asian success stories.

Source:Roya Ghafele

Phytopharmaka Market,

Chart 3

The Omani Context

Alternative Medicine: A growing Market

You can do it too!

AGENDA

Phytopharmaka Market,

Chart 4

The Omani Government Encourages the Use of Traditional Values

Source:Roya Ghafele, WIPO/ECTK/SOF01/3.6, Oman National Drug Policy 2000

“The Omani people have, with God’s grace, managed to combine the good elements of tradition and the good elements of modern times…Oman joins tradition to modernization.”

“The objective of the National Drug Policy is to develop within the resources of the country, the potential that drugs have to control common diseases and alleviate poverty.”

“The National Drug Policy seeks to ensure that the traditional medicines of Oman and the imported traditional remedies are safe and effective.”

Phytopharmaka Market,

Chart 5

Pharmaceutical Market Size: Selected Middle Eastern Countries

Source:Roya Ghafele, oeronline.com

Saudi Arabia

United Arab Emirates

QatarKuwait BahrainOman

160

Market Size:In US Dollar Million

80

1000

350

60 30

Phytopharmaka Market,

Chart 6

Traditional Medicine: An unlocked Asset in Oman

Source:Roya Ghafele

Insufficientlyresearched

Negative stigmaamong educated,used by uneducated &rural poor

Over prescriptionof antibiotics

Totalmarket sizeunknown

Few studies onhealth impactor use by patients

Lack ofawarenessof the valueof traditionalmedicine

Phytopharmaka Market,

Chart 7

The Omani Context

Alternative Medicine: A growing Market

You can do it too!

AGENDA

Phytopharmaka Market,

Chart 8 Global Trend: Back to Nature

Source:Roya Ghafele, CBD Secretariat Report 2000

9

China

Western Europe

6.6

321

21.4Other

U.S.A.Canada Japan

Estimated Total Market Size: 43 Billion Dollar

Phytopharmaka Market,

Chart 9 Indonesia’s Context

Source:Roya Ghafele, Badaon Pom Indonesia

Case Example Indonesia:

Vision: “To optimize the utilization of IndonesianHerbal Medicine for the maintenance & promotionof health of the community as well as to prevent & treat diseases”

40 % of population uses herbal medicine:popular & locally available

Market Potential:200 million DollarGrowth expected: 20%

400 000 species 90 000 used as medicine 400 used as Phytopharmaka

Phytopharmaka Market,

Chart 10 Addressing the Challenges

Source:Roya Ghafele

Case Example Indonesia:

Envisaged Solutions

Government Commitment

Standardization throughout the value chain

Quality control of independent institutions, clinical trials

Patents on new ingredients, isolationsCertification Marks guarantee product safety

Further training & R&D

Public Private Partnerships

• Lack of data on product/services quality, safety, efficacy

• Fragmented information

• Limited research

• Lack of IP protection in Phytopharmaka

• Low acceptance in conventional health care systems

• Lack of qualified practitioners

Strategic Issues

Phytopharmaka Market,

Chart 11 Government Strategic Policy

Source:Roya Ghafele, National Food and Drug Control Agency Indonesia

Case Example Indonesia

Inventory,mapping ofexistingmedicinalplants

Foster R&Don herbalmedicinefrom cultivation,post harvest, production to final product

Developstandards in production, plant material,

Verify productsafety, efficiencythrough independentbody

EnsureIP protection:trademarks,patents

Create market opportunities

Reposition Phytopharmakato become globallycompetitive

Phytopharmaka Market,

Chart 12

The Omani Context

Alternative Medicine: A growing Market

You can do it too!

AGENDA

Phytopharmaka Market,

Chart 13

Changing the Course: Unlocking Hidden Assets

Source:Roya Ghafele

Traditional Medicine,a shadow market mainly for the poor & uneducatedassociated with backwardness

RepositioningTraditional Medicine,a source of wealthfor patients &the Omani economy

Used as alternativeapproach across allclasses globally

Phytopharmaka Market,

Chart 14

Developing an Early Stage Market in Oman

Source:Roya Ghafele

Improve health care forpatients in Oman &

worldwide, whileexpanding a profitable

market for Oman

UnlockAssets

Developa

Market

Position ProductsGlobally

What? Why?How?

Marketing

Technology

Organization

• Raise Awareness

• Research & assesshealing methods

• Bring research & industry together

• Define yourmarket

• Understandcompetition

• Assess profits/costs

• Brand products

• Raise patients’awareness

• Find international alliances

Phytopharmaka Market,

Chart 15 Next Steps

Source:Roya Ghafele

• Develop government commitment

• Mobilize funding

• Identify relevant researchers, traditional healers, industry interested in developing the market

• Bring relevant stakeholders together to interact and build up a network

• Seek to standardize healing practices; e.g. issue a university degree on traditional healing