Egyptian pharmaceuticals market set to expand at 7.3% CAGR in local currencies to 2014

In the first quarter 2010 Business Environment Ratings table for the 17 countries in the Middle East and Africa (MEA) region from Business Monitor International, Egypt has retained ninth position in the matrix above Morocco and Iran, but below Jordan and Oman. Key drawbacks of the Egyptian pharmaceuticals and health care market include low per-capita spending on drugs, as well as poor drug pricing and reimbursement conditions. Public sector health expenditure reached a value of 19.2 billion Egyptian £ ($3.5 billion) in 2008, accounting for 41.7% of total health expenditure.

BMI's analyst calculates Egypt's pharmaceutical expenditure to have been EG£12.7 billion in 2008, and expects drug expenditure to have reached a value of EG£13.8 billion for 2009. By 2014, the total amount spent on prescription and over-the-counter (OTC) medicines is forecast to have reached EG£19.6 billion, equating to a 2009-2014 compound annual growth rate (CAGR) of 7.3% in local currency terms and 11.5% in US dollars.