BMI's Executive Summary

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Jordan's pharmaceutical market is small as a result of having a population of just 6mn people who spend sparingly on drugs (per capita drug spending should be US$55 by the end of 2007). The market was estimated to be worth US$335.5mn at year end 2007 and is forecast to grow to US$540.3mn by 2012. Drivers of growth will be an expanding population and a strong healthcare platform.

The domestic pharmaceutical industry is strong, as demonstrated by Jordanian drugmakers taking the top three places in terms of market share. However, the local manufacturing sector is highly fragmented and most drugmakers are limited to the manufacture of basic generics. Partly as a result of the small local market, many drugmakers have looked abroad to boost sales. Hikma Pharmaceutical, the largest local player, but with a market share of only 7.1% in Jordan, is a prime example. Worldwide, Hikma's revenue was US$317mn in 2006, but only around 7.5% of sales were generated in Jordan.

Meanwhile, in October 2007, Hikma made a bid for local rival, Arab Pharmaceutical Manufacturing Company (AMP). Should AMP shareholder and local regulators approve the acquisition of Jordan's third largest drugmaker by the largest, Hikma would achieve a market share of around 15%, more than twice that of the nearest rival Dar Al Dawa.

For Q108, BMI has overhauled our Business Environment Rating methodology. Under the new system, Jordan is ranked equal eighth out of 14 Middle East and Africa (MEA) markets surveyed. Despite a strong regulatory environment and attractive country structure in regional terms, a tiny drug market of US$335.5mn, with a strong generics bias, serves as a deterrent to firms entering the market. Having said this, greater co-operation within the Arab region should go someway to negating the problem of a small domestic market in the medium term.

Jordan is the only country in the Middle East to post a positive pharmaceutical trade balance, providing further evidence of the strength of local manufacturing. However, it remains heavily reliant on Europe for patented drugs and there are signs that Asian generics exporters are looking to Jordan in increasing numbers. One of Bangladesh's top five export players, Beximco Pharmaceuticals began shipments to Jordan in October 2007, while Pakistan's Indus Pharma is set to follow suit after recently being granted a licence. Although it is not a member of the Gulf Co-operation Council (GCC), Jordan can boast membership of the Greater Arab Free Trade Area (GAFTA), which provides regional export potential for Asian exporters looking to use the relatively small domestic market as a base for wider regional trade.

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: