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Tunisia to boost pharmaceutical & biotechnological industry

Wednesday, 13 January 2010 14:37

Tunisia_to_boost_pharmaceuticals_sector_and_develop_biotechnological_industry

Tunisia's pharmaceuticals sector is receiving increased attention from the government, with plans to boost exports and develop a biotechnological industry.

The Tunisian government would like the pharmaceutical industry to have a bigger weight in the economy, as well as in the country's exports. At a cabinet meeting last week, local media reported, it discussed plans on how to increase production and exports of locally made products to an increasing array of external markets. The government also aims to have 60% of local medicine needs covered by the country's production, local media reported.

"It's an ambitious goal, but the country wants to increase pharmaceuticals exports five-fold in the next five years," Maher Kamoun, the president-director of Général at Sociéte des Industries Pharmaceutiques de Tunisie and the president of Chambre Nationale de L'Industrie Pharmaceutique, told OBG.

So far, Tunisia's pharmaceuticals sector has not suffered any negative consequences from the current recession. "We had a crisis before the crisis, because of the heavy increase of a lot of our raw materials and the sudden surge in energy costs," Kamoun told OBG. "Other than that, there hasn't really been an impact in the current economic situation, because pharmaceuticals are generally a priority for people."

According to the Ministry of Health, Tunisia produces TD360m (€190m) of pharmaceuticals, which represent 45% of the total pharmaceutical market in the country. The government wants to reach TD730m (€385.8m) in national production terms by 2016 and increase the market share of locally manufactured products to 60%. Current exports are at TD30m (€15.8m) and the country also hopes to export TD160m (€84.5m) of pharmaceuticals by 2016.

The main export markets for Tunisian pharmaceuticals are mostly within the Middle East and North Africa region. The country's biggest markets are in neighboring Libya, Algeria and Morocco, but also in other countries such as Mauritania, Senegal, Jordan, Yemen and Saudi Arabia. Yet in order to grow the business, companies will need to get a better foothold on the European markets. Tunisian companies already export to France, and are aiming for a stronger grip on the continent by increasing revenues in the more sophisticated markets.

Stringent regulation will help. Tunisian authorities have placed the bar very high in terms of quality and safety standards of the products, and many companies are certified to export to the EU. But there is still some brand-building work to be done, say some experts. "The goal now is to work on the image of Tunisian medicines and convey our quality, in order to develop exportation," states Hatem Hachicha, Pfizer's general manager for Tunisia and Libya.

Even regarding the local market, there is enormous potential for the future, considering the still relatively low expenditure per-capita rates and the country's large middle-income class that is becoming more health-aware. Furthermore, increased government subsidising of medicines related to chronic disease means that more people are now able to keep up with regular treatment.

"In developed countries, the expenditure per citizen on pharmaceutical products is between TD600 (€315) and TD800 (€420)," Hachicha told OBG. "Here in Tunisia, the average expenditure is about TD60 (€31). Add to this rising life expectancy and living standards, and you can understand that the market cannot but grow."

The country also wants to develop the biotechnology and research and development side of the industry. The Tunisian health care sector is well regarded abroad, and citizens of neighboring Algeria and Libya, as well as European countries, often visit to receive medical treatment. Currently, over 150.000 health tourists visit Tunisia annually. Nonetheless, the country needs to better sell its image and become more visible on the international stage in order to attract further investment and become known as a knowledge centre for the biotechnology sector.

Global Arab Network

This article is published in partnership with Oxford Business Group

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