Egypt's pharma market set for 11.4% CAGR to 2014, helped by drug pricing reform that will boost generics

Egypt's total pharmaceutical spending has been on a steady rise, reaching a calculated $2.48 billion by the end of 2009 and forecast to rise to $4.24 billion by 2014 at an 11.4% compound annual growth rate (CAGR), according to the latest report from Business Monitor International.

Growth in the next five years will be driven by the drug pricing reform, which should make all drugs more affordable, but in general will make generics a more attractive option for substitution. BMI's long-term outlook to 2019 is for drug spending to reach $5.99 billion, with a slower CAGR of 9.2% from 2014 onwards.

BMI believes that Egypt's pharmaceutical sector has more potential in terms of growth and expansion prospects over the next five years than its regional peers Algeria and Morocco. Its view is based largely on the high market value of drug sales in Egypt, as well as the strengthening domestic drug manufacturing sector, which should help alleviate the pharmaceutical trade deficit.