BMI's Executive Summary

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The Iranian pharmaceutical market is characterised by its relatively strong domestic industry, which meets the bulk of local demand in volume terms. Multinationals are present through imports, although improved intellectual property and regulatory conditions may attract some investment in local facilities. However, although basic care is widely accessible, the patchy quality of primary care coverage continues to reduce patients' access to drugs and thus negatively affects the overall drug market's value and volume. In the meantime, patented and prescription drugs will continue to dominate the marketplace for as long as hospitals remain the primary access points to healthcare.

By 2012, the overall drug market is expected to be valued at US$2.62bn, up from an estimated US$1.79bn in 2007. Generics will gain a couple of percentage points in terms of market share, with new patented drugs continuing to be sidelined by restrictive reimbursement policies. Nevertheless, Iran's large and rapidly growing population will be instrumental in driving the expansion of the pharmaceutical market as a whole, as will be the likely increase in drug prices, which are presently among the lowest in the region. Additionally, if the government cuts fuel subsidies, domestic producers may face higher operating costs, which could stimulate a round of price increases.

Iran occupies tenth position in BMI's Business Environment Rankings for the Middle East and Africa (MEA) region, which has been substantially redesigned. Despite low per capita consumption of medicines and the large rural population, the sheer number of Iran's inhabitants represent a substantial commercial opportunities for companies willing to risk exposure to biased regulatory policies and inappropriate intellectual property (IP) environment. The dominance of the local industry in meeting the domestic demand will represent another drawback to foreign investment and involvement in the country.

In the meantime, the strong position of domestic firms will continue to stimulate the country's pharmaceutical exports, especially in the area of herbal medicines, which are making a mark on the international scene. Exports will receive government encouragement and investment in production facilities, with former Soviet Union and North African states being the prime export destinations. On the other hand, although some multinationals are planning on setting up local manufacturing plants, Iran's unsettled political climate will remain a major deterrent to such ventures.

Contents

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Chapter 1 - Executive Summary

Iran Pharmaceuticals & Healthcare Industry SWOT

Iran Economic Industry SWOT

Iran Business Environment SWOT

Chapter 2 - Iran: Business Environment Ranking

Table: Business Environment Ranking: Middle East And Africa

Business Environment Ranking

Chapter 3 - Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property

Pricing And Reimbursement

Chapter 5 - Industry Developments

Healthcare Sector

Epidemiological Trends

Pharmaceutical Industry

International Co-operation

Company Activity

Drug Development

Chapter 6 - Industry Forecast Scenario

Key Growth Factors - Pharmaceutical Sector

Overall Market Forecast

Table: Iran Drug Expenditure Forecasts

Table: Economic Activity

Prescription And OTC Market Forecast

Table: OTC Market Forecasts

Table: Prescription Market Forecasts

Generics Market Forecast

Table: Generics Market Forecasts

Import/Export Market Forecast

Other Healthcare Data Forecasts

Table: Iran Healthcare Forecasts

Chapter 7 - Country Snapshot: Iran Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Table: Wages Per Year

Chapter 8 - Competitive Landscape

Chapter 9 - Company Profiles

Darou Pakhsh

Iran Pharmaceutical Development & Investment Company (IPDIC)

Pars Darou

Pharmieco

Chapter 10 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Pharmaceutical Industry

Sources

Chapter 11 - Appendix: Regional Demographic Data

Table: The Long View: Data Over The Economic Cycle (2000-2007)

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn

Competitive Landscape for Middle East & Africa Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Middle Eastern and African Pharmaceutical & Healthcare Sources

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BMI's Middle Eastern & African Pharmaceutical & Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceutical & healthcare industry associations, chambers of commerce and company reports. Information sources include: