MANUFACTURERS UNDETERRED BY POOR EGYPTIAN HEALTHCARE

Egypt's healthcare spending has risen rapidly in recent years, reaching EGP5.6bn (US$900mn) in 2004, but the system is still widely reported to be in poor condition. Nevertheless, the country's promise as a gateway to Middle Eastern and African markets has not deterred major international drugmakers from starting local manufacturing operations.

In February, Egyptian authorities reported that 73 companies had pending applications to manufacture drugs in the country. Although copies account for a significant share of the market, several leading research-based multinationals already produce drugs under license from local manufacturers such as EIPICO.

While it is possible that Egyptian pharmaceutical exports could gain a substantial boost from trade harmonisation across the wider Middle East region, at home the government's cost-conscious priorities may be falling out of step with multinationals. Notably, one leading research-based manufacturer recently opened a facility in nearby Algeria, which enacted a major patent law reform in 2003.