Smaller Indian Drugmakers Protest UAE Entry Barriers

Indian low-cost drug producers are lamenting their restricted access to the UAE's drugs market, citing the traditional dominance of branded ethical products in the local sector. The country's adherence to international standards of regulation has also made it difficult for smaller generic makers to penetrate the market, where the segment accounts for only 5% of overall spending.

Nevertheless, some Indian bulk active ingredients producers report partial success, as in the case of Bal Pharma, which exports its diabetes therapy Gliclazide to the UAE, and recently entered the local OTC market with a calcium supplement and an antiseptic cream. Notably, Indian statins producer Biocon also has a strategic alliance with local manufacturer Neopharma. However, less sophisticated rivals note the UAE's continued insistence on European Union approval for generic drugs, as well as a preference for a significant price differential in relation to branded equivalents.

As the country's traditionally wealthy consumers generally report lifestyle-related conditions, with demand for anti-diabetes products growing at some 22% per year and cardiovascular therapies rising by up to 15%, Indian drugmakers' eagerness to enter the market is understandable. However, the UAE's recent free trade agreement with the US, as well as Western-style regulation and a small but sophisticated manufacturing sector, are unlikely to open the market to India's more basic medicines producers in the short term.