Lebanon pharmaceuticals market set for 3.9% CAGR; slow growth for generics

Total drug spending in Lebanon is expected  to increase from under $500 million in 2008 to $605 million in 2013, a compound annual growth rate (CAGR) of 3.9% in US dollar terms, with 1.75% of Gross Domestic Product dedicated to pharmaceutical expenditure by 2013, according to a new report added to Research and Markets' offering.

Lebanon's Minister of Health, Mohammad Jawad Khalifeh, has held the position since 2005 and has dramatically reformed drug pricing in the country, highlighting the fact that other countries in the region with similar economies were paying significantly less for medicines than Lebanon. Following a lengthy period of pressure, the government finally reduced average pharmaceutical prices by 5%, with the momentum and support gained in the process providing the impetus for other regulatory changes, including the introduction of transparency guidelines.

Public sector health provisions have been scrutinized and challenged by Mr Khalifeh in light of high unmet demand for subsidized services. He said the budget for the Ministry of Public Health in 2005 was only 3.5% of GDP and, subsequently, the department ran into deficit every year. 'While a small population will restrict growth, we believe government subsidization will do much to boost the drug market. More affordable prices and access to hospitals will allow people to spend more on medicines instead of forgoing treatment altogether,' says the report.

Lack of transparency/registration for copy medicines