Pharmaceutical Giants Remain Wary of Iranian Market

Iran's pharmaceutical market is still heavily influenced by the country's more general economic, political and social issues. In the wake of the election victory of Iran's religious conservatives last year, prospects for progressive development in terms of closer relations with the West and multinational investment remain limited.

Aside from its poor relations with the West, other problems make the Iranian pharmaceutical market an unstable one for development. Firstly, despite attempts to develop other industries, Iran's fortunes remain closely tied to oil. Secondly, the Iranian economy is dominated by a sprawling, inefficient state, with private enterprise largely limited to small trading and service businesses.

Overall, the operating conditions and prospects for increased foreign company activity remain poor, and as result, large pharmaceuticals multinationals will continue to steer clear of any connection with the country.