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Algeria Pharmaceuticals and Healthcare Report Q3 2009

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An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

£330.00

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Market

Healthcare and Medical

Report Type

Market Research

Country

Algeria

Published

17 June 2009

Number of Pages

59

Report Delivery

Download

Delivery Lead Time

Immediate

Publisher

Business Monitor International

In the Q309 Business Environment Rankings matrix for the 17 key countries of the Middle East and Africa (MEA) region, Algeria places 14th, above three other, much poorer African markets. While its population size, privatisation status and the rising healthcare investment provide solid growth opportunities, Algeria’s attractiveness as an investment target suffers from deficient regulatory and intellectual property (IP) regimes. To this effect, among the 71 countries that the surveys globally for their enforcement of IP frameworks, Algeria places a lowly 65th, with the government standing accused of showing blatant preference for locally made and generic products.

Indeed, in the 2009 version of its Special 301 Submission, the Association of Pharmaceutical Research and Manufacturers of America (PhRMA) ranks Algeria among the ‘Priority Watch List’ countries.

Previously listed on the ‘Watch List,’ Algeria is now criticised for additional market access barriers, with the government enforcing a ban on imports of medicines that can be made locally from the start of 2009.

In 2008, companies’ import plans had to be revised downward by as much as 50%, following the move by the local authorities, as the country seeks to increase self-reliance in drug production. Other unresolved issues concern the lack of data exclusivity and patent protection, restrictive and opaque reimbursement decisions, and approval delays for foreign drugs.

Consequently, the development of the Algeria’s pharmaceutical market over the next five years is likely to be stifled. From the value of DZD159bn (US$2.35bn) at consumer prices in 2008, the market is expected to grow at a modest compound annual growth rate (CAGR) of 5.76% in local currency terms, to reach DZD210bn (US$2.96bn) in 2013. In combination with IP and regulatory deficiencies, the lack of comprehensive local production will result in inevitable shortages of medicines, as had happened in previous years. While some local companies, namely the leading domestic player Saidal, are expanding their production facilities, others will not be able to source adequate funding. Moreover, Algeria’s desire to join the World Trade Organisation (WTO) will increase the burden on local manufacturers, although the recent IP developments may well cause membership negotiations to stall.

While we are forecasting that Algeria will post a global trend-busting 5.7% real GDP expansion in 2009, much of the population is still poor and lacks proper access to medicines. The animosity caused between the foreign industry and the government by the enforcement of cost-containment and import-restricting measures could also hamper donations of essential medicines. Nevertheless, Algeria continues to forge closer ties with other Arab nations, officially becoming a member of the Greater Arab Free Trade Zone (now numbering 18 countries) at the start of 2009, and also finalising a preferential trade agreement with Tunisia. Algeria already stipulated that 45% of all imports must be generics, with such trade – on a regional basis - therefore likely to be facilitated and stimulated by economic cooperation.

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Select License Type

Electronic License

Electronic License

An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

£330.00

Change Currency

GBP EURO USD

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