Pharmaceutical Sector in Jordan


  Full Report - PDF File  النسخة العربية
 

Executive Summary

·   The Jordanian pharmaceutical sector is considered to be advanced and one step ahead of regional competitors due to the sector’s various strengths which include qualified local human resources and a favorable business environment

·   Despite the sector’s positive performance, there is room for expansion given growth in the regional market and advantageous government support

Key Findings

The report provides an overview of the sector’s structure, regulatory framework, market indicators in addition to reviewing the financials of the five publically quoted Jordanian pharmaceutical companies. This summary provides an overview of the findings.

 

·   Jordan’s pharmaceutical sector is regulated by the Ministry of Health (MoH), supervised by the Jordanian Food and Drug Association (JFDA) and governed by local regulations and standards that are compatible with international standards

·   Most of the Jordanian manufacturers are generics manufacturers

·   A significant portion of the local demand is still imported despite a strong local manufacturing industry

·   Studies demonstrate that the sector plays an important role in resolving the country’s unemployment problem with over 5,000 direct jobs and 8,000 indirect jobs in 2008

·   The perceived strengths and opportunities for the sector include:

o   The sector has qualified local human resources

o   Jordan has an open international market with free trade agreements with different countries leading to tax and customs exemptions. These include Jordan-US Free Trade Agreement, Jordan-EU Association Agreement

o   The ownership structure of assets in Jordan is very flexible compared to regional neighboring countries

o   70% of the sector’s sales are of exports thus positioning the sector among the highest exporters in Jordan. Sales are concentrated in KSA and Algeria

o   The sector has a good track record in addition to The Investment Promotion Law that is creating a great deal of investment benefits

·   Despite being advanced, the pharmaceutical sector in Jordan is facing a number of challenges:

o   Jordan has a small pharmaceutical market leading to low local market demand

o   Labor cost is considered high

o   Public perception that the quality of medication is low with a preference for foreign medication

o   Brand promotion is difficult making marketing of locally-produced medication weak

o   There is high domestic competition with the presence of many family and private companies

o   Lack of government support in regards to R&D and the availability of funds to support it in addition to the absence of an Intellectual Property Law in the region

·   Despite manufacturers’progression in Jordan, there is room for expansion given growth in the regional market where an increasing number of manufacturers are performing well despite their new entrance to market due to government support in terms of reduced costs and closing the market to local production

·   Five out of the 17 pharmaceutical companies in Jordan are publically quoted companies with four on the Amman Stock Exchange and one on the London Stock Exchange

·   The financial performance of producers was affected in 2008 and 2009 on the back of weak growth rates and losses realized from financial portfolios

Recommended Initiatives/Actions

This report does not provide recommendations. The analysis is focused on the status of performance of the sector.

 

Report Name

Date

Timeline

Pharmaceutical Sector in Jordan

2010

Not Relevant

Author

Supporting Donor

AMWAL Invest

None

Sector

Lead Ministry

Healthcare & Pharmaceuticals

Not available

Key Topics

Exports – Human Resources –Industry Players – Jobs – Local Demand – R&D – Regulatory Framework – Market Overview – Listed Companies – Financial Analysis – Trade Agreements

 

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