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Competitive intelligence on Egypt's pharmaceuticals and healthcare industry

Published on December 30, 2009 at 3:21 AM · No Comments

Research and Markets (http://www.researchandmarkets.com/research/26a7c7/egypt_pharmaceutic) has announced the addition of the "Egypt Pharmaceuticals and Healthcare Report Q1 2010" report to their offering.

“Egypt Pharmaceuticals and Healthcare Report Q1 2010”

In the Q110 Business Environment Ratings table for the 17 countries in the Middle East and Africa (MEA) region, Egypt has retained 9th position in the matrix above Morocco and Iran, but below Jordan and Oman. Key drawbacks of the Egyptian pharmaceuticals and healthcare market include low per-capita spending on drugs, as well as poor drug pricing and reimbursement conditions. Public sector health expenditure reached a value of EGP19.2bn (US$3.5bn) in 2008, accounting for 41.7% of total health expenditure.

The analyst calculates Egypt's pharmaceutical expenditure to have been EGP12.7bn (US$2.34n) in 2008. We expect drug expenditure to reach a value of EGP13.8bn (US$2.47bn) in 2009. By 2014, we expect the total amount spent on prescription and over-the-counter (OTC) medicines to have reached EGP19.6bn (US$4.3bn), equating to a 2009-2014 CAGR of 7.3% in local currency terms and 11.5% in US dollar terms. As part of BMI's forecasting development initiative, we have extended the forecast period for our Drug Expenditure Forecast Model from 5 years to 10 years. The 10-year forecast model projects that Egyptian drug expenditure will reach a value of EGP27.6bn (US$6.0bn) by 2019, representing a 2009-2019 CAGR of 7.2% in local currency terms and 9.3% in US dollar terms. As a proportion of GDP, drug expenditure is expected to decline over the 10 years, from 1.30% in 2009 to 1.20% by 2014, and to 1.14% by 2019. The drop-off is anticipated due to stringent cost-containment measures by the government, including a greater use of generic medicines and strict price controls.

Despite the government's focus on cost-containment, BMI calculates that the its contribution to the country's healthcare sector as a proportion of the total health expenditure is set to increase over the 2009- 2014 forecast period. In 2009, government spending on health expenditure is expected to reach EGP20.7bn (US$3.7bn), accounting for 43.6% of total health expenditure. By 2014, it is expected that the government's contribution to healthcare will increase to 47.2% of total health expenditure, reaching EGP27.6bn (US$6.0bn) - a 2009-2014 CAGR of 5.9% in local currency terms and 10.1% in US dollar terms. BMI welcomes the increasing government investment in Egypt's healthcare sector, as according to our Burden of Disease Database (BoDD) the number of disability-adjusted life years (DALYs) lost to disease is set to increase.

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