Drive to Increase Local Production of Drugs Presents Vast Opportunities for Ethiopian Pharmaceuticals

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1 Drive to Increase Local Production of Drugs Presents Vast Opportunities for Ethiopian Pharmaceuticals Research PREVIEW for Analysis of the Ethiopian Pharmaceutical Market

2 Key Highlights The Government of Ethiopia is encouraging growth of the pharmaceutical market through several initiatives. Evident growth in share of generic medication, increased production by manufacturing plants in Ethiopia and supply from foreign manufacturers, as well as the high demand and low cost of generic medication support this price-oriented market. The Government is expected to raise pharmaceutical production, improve quality and strengthen national medicine regulatory system. It offers tax incentives to manufacturers that intend to set up or revamp existing production facilities in the country. The market is expected to have a compound annual growth rate of approximately 10.49% and reach $1 billion by Source: Frost & Sullivan analysis.

3 Market Restraints Market Drivers Drivers and Restraints Total Pharmaceutical Market: Key Market Restraints, Ethiopia, years 3-5 years 6-10 years Accelerating Ethiopian economy drives availability of funds for improved healthcare. On-going requirement of anti-infective drugs drives demand for more effective, affordable treatment. Increasing incidences of non communicable diseases offers opportunities for the growth of the pharmaceutical industry and it is expected to fuel demand for chronic care medication. Shortage of FOREX with National Bank encourages use of black market for trading in international currencies. Reliance on high out-of-pocket spending restricts growth of pharmaceutical market, as it lowers expenditure by payers. Deficiency of resources in medical institutions hampers quality of workforce, thereby limiting growth of specialty therapeutic segments and administration of specialised drugs. Impact: High Medium Low Source: Frost & Sullivan analysis.

4 Key Companies to Watch GlaxoSmithKline Cadila Julphar GlaxoSmithKline or GSK is a British pharmaceutical manufacturer that has been operational in Ethiopia for the past 30 years. It has invested approximately 20% of its profits in the capacity building of health extension workers. It finalized its plans to partner with Addis Ababa University to set up a pharmaceutical plant in the country; in order to position Ethiopia as a Pharmaceutical Hub (for East Africa), in the coming years. Indian company offering branded & branded-generic drugs, since 2007 as Indo- Ethiopian joint venture with Almeta Impex (an Ethiopian importer of pharmaceutical drugs). Only Indian company in Ethiopia with a manufacturing plant. In 2011, became the first pharmaceutical company in Ethiopia to receive a cgmp certificate from WHO. Julphar is a well known pharmaceutical company from UAE and a prominent market participant in Ethiopia. In January 2013, it established a GMP certified plant in association with Medtech (an Ethiopian importer of pharmaceutical drugs). It has recently decalered its plans of constructing another plant in Ethiopia, which will produce injectable medicine. Source: Frost & Sullivan

5 Executive Summary CEO s Perspective 1 The pharmaceutical market of Ethiopia is expected to experience continuous, robust growth in short, medium and long term. 2 This growth is primarily fueled by the support of the Government, which has initiated several plans and policies for the industry. 3 The market is dominated by generic drugs due to their low cost. 4 Included in full research access. Source: Frost & Sullivan

6 The Full Analysis Features the Following Content Section Slide Number Executive Summary 05 Key Findings 06 Market Overview 13 Competitive Playbook 27 Driver, Restraints, and Trends Total Pharmaceutical Market 31 Forecasts and Trends Total Market 35 Competitive Environment 43 Key Companies to Watch 46 The Last Word 55 Appendix 61 List of Exhibits 71

7 Key Questions the Analysis Answers Is the pharmaceutical market in Ethiopia growing, how long will it continue to grow and at what rate? What are the fastest growing product and therapeutic segments of the market? How is the Government contributing towards the growth of the market? What are the key drivers and restraints affecting the growth of the market? What are the key challenges that may be faced in the near future and the long term? Are the pharmaceutical drugs offered today meeting the needs of the patients in Ethiopia or is there a need for additional development? How is the market segmented in Ethiopia? Of the types of medicines and various therapeutic areas, which ones will grow in the near future and long term? Source: Frost & Sullivan

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9 Global Perspective 40+ Offices Monitoring for Opportunities and Challenges

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