Jordan

Nawal Ragit

Business In Pharmaceuticals

JORDAN MAP

DemographicsPopulation 7,930,491 (July 2014 est.)Age structure 0-14 years: 35.8% (male 1,457,174/female 1,385,604) 

15-24 years: 20.4% (male 826,482/female 788,950) 25-54 years: 35.7% (male 1,421,634/female 1,412,888) 55-64 years: 4.2% (male 160,224/female 169,965) 65 years and over: 3.9% (male 145,515/female 162,055) (2014 est.)

Dependency ratios total dependency ratio: 59.4 % youth dependency ratio: 53.7 % elderly dependency ratio: 5.7 % potential support ratio: 17.4 (2014 est.)

Median age total: 21.8 years male: 21.5 years female: 22.1 years (2014 est.)

Population growth rate 3.86% (2014 est.)Birth rate 25.23 births/1,000 population (2014 est.)Death rate 3.8 deaths/1,000 population (2014 est.)Net migration rate 17.22 migrant(s)/1,000 population (2014 est.)Urbanization urban population: 82.7% of total population (2011) 

rate of urbanization: 2.17% annual rate of change (2010-15 est.)

DemographicsMajor cities - population AMMAN (capital) 1.179 million (2011)Sex ratio at birth: 1.06 male(s)/female 

0-14 years: 1.05 male(s)/female 15-24 years: 1.05 male(s)/female 25-54 years: 1.01 male(s)/female 55-64 years: 1.02 male(s)/female 65 years and over: 0.95 male(s)/female total population: 1.03 male(s)/female (2014 est.)

Nationality noun: Jordanian(s) adjective: Jordanian

Ethnic groups Arab 98%, Circassian 1%, Armenian 1%Religions Muslim 97.2% (official; predominantly Sunni), Christian 2.2% (majority

Greek Orthodox, but some Greek and Roman Catholics, Syrian Orthodox, Coptic Orthodox, Armenian Orthodox, and Protestant denominations), Buddhist 0.4%, Hindu 0.1%, Jewish <.1, folk religion <.1, unaffiliated <.1, other <.1 (2010 est.)

Languages Arabic (official), English (widely understood among upper and middle classes)

Literacy definition: age 15 and over can read and write total population: 95.9% male: 97.7% female: 93.9% (2011 est.)

Health expenditures 10% of GDP

Jordan-Market

Total Exports $ 8.3 Billion

Jordan's main exports are textiles, potassium, phosphates, fertilizers, vegetables and pharmaceutical products. Jordan's main export partners are Iraq, the United States, India, Saudi Arabia and Syria.

Jordan-Market

Total Imports $22.7 Billion Jordan's main imports are machinery and transport equipment, fuels, food, manufactured chemicals and electrical machines. Jordan's main import partners are Saudi Arabia, China, Germany, the United States and Italy.

Free Trade agreements Jordan has Free Trade agreements with the

following countries and blocs:◦ United States(United States-Jordan Free Trade

Agreement)◦ The European Free Trade Association◦ The European Union◦ Canada◦ Singapore◦ Malaysia◦ Tunisia◦ Algeria◦ Libya◦ Turkey and ◦ Syria

Pharmaceutical Market Jordan current Pharma Market size is close to 0.9 Billion $.

Jordan is hoping its exports of the pharmaceutical industry would generate US $1 billion by the end of 2015. 

Jordan imported pharmaceutical products valued at US$0.6 billion approx in 2014

Switzerland and the UK were the leading suppliers.

Imports of medical equipment and pharmaceuticals exceeded $450 million in the year 2013 and are expected to grow to $615 million by the end of 2016.

Currently, 16 local pharmaceutical plants, having a market value exceeding US $1.18 billion are engaged in the production of medicines in Jordan. 

The majority of pharmaceutical exports were destined for other countries in the Middle East & Africa region.

Pharmaceutical Products- Export & Domestic Use

Pharma Export80%

Domestic 20%

Pharmaceutical Products- Export & Domestic use

90% to Arab

CountriesDomestic Production- US $1.18 billion

Pharmaceutical industry in Jordan is a pioneer exporting sector due to its high quality and excellent reputation. Therefore 80% of production is exported to foreign markets(944 Million $).Jordan pharmaceuticals are now distributed worldwide in more than 65 countries and 90% of the exports are going to Arab countries (which is 849 Million $). Jordan pharmaceutical companies have joint ventures and subsidiary companies in 8 Arab and foreign countries.

Pharmaceutical Import

Medical equip-ment69%

Phar-maceu-

tical28%

Other Medical Products

3%

% Share

Imports of medical equipment and pharmaceuticals 0.6 Billion $ . 0.4 Billion $- Medical Equipment0.17 Billion $ - Pharmaceutical Medicines0.018 Billion $- Other

Total Demand Of Pharmaceutical Products

Pharmaceutical Products

Consumption (Domestic)= $0.9

Billion Approx

Medical Equipment $0.4 Billion Approx

Pharmaceutical medicines $0.45

Billion Approx

Local Manufacturer $0.28 Billion

Approx

Pharmaceutical Medicine Import

$0.16 Billion Approx

Other $0.05 Billion Approx

Total Demand Pharma Products : $0.9 Billion ApproxTotal Demand Medical Equipment : $0.5 Billion ApproxTotal Import Medical Equipment $0.4 Billion Approx (80% import)Total Demand Pharmaceutical medicines $0.45 Billion ApproxLocal Manufacturer $0.28 Billion ApproxPharmaceutical Medicine Import $0.16 Billion Approx

Market Share

50%50%

Market ShareMNCs Local Manufacturer

Consolidation in the Domestic Market

The domestic pharmaceutical industry in Jordan is quite fragmented with no single player accounting for even 10% market share

The fragmented nature of the industry has led to a good deal of consolidation in last few years. Arab

Pharmaceutical Manufacturing

(APHA)

Advanced Pharmaceutical

Industries (ADPH) Arab Pharmaceutical

Manufacturing Company (APMC)

Jordanian Pharmaceutical Manufacturing

Company (JPHM)

Al Razi Pharmaceutical

Industries Company

Jordanian Pharmaceutical Manufacturing

Medical Equipment Co. Ltd.

Tantash groupMiddle East

Pharmaceutical and Chemical Industries

(MPHA),

Arab Center for Pharmaceutical and Chemical Industries Company (APHC).

Expenditure Projections

Pharmaceuticals: JOD643mn (USD905mn) in 2014 to JOD683mn (USD962mn) in 2015; +6.3% in local currency terms and US dollar terms.

Healthcare: JOD1.85bn (USD2.61bn) in 2014 to JOD1.97bn (USD2.77bn) in 2015; +6.2% in local currency terms and US dollar terms. 

Major DiseaseJordanians increasingly suffer from

◦ Asthma; ◦ Cancer; ◦ Diabetes; ◦ Obesity; ◦ Heart stroke, ◦ Vascular disease; ◦ Osteoarthritis, ◦ Rheumatoid arthritis; and ◦ Osteoporosis.

Opportunities exist for technologies that avert or reduce disability because of these diseases.

Facts & Figures Jordan is a regional leader in Medical Tourism: The World Bank

ranked Jordan the leader in the Arab region and the fifth in the world as a medical tourism hub.

Medical tourism generates over $1billion in revenues annually. Jordan expects to reach 300,000 medical tourists in 2015, bringing revenues of US$1.5 billion.

Jordan’s rate of healthcare expenditure is the third highest in the region and is growing at an annual expenditure rate of about 7%. 104 hospitals serve Jordan’s population and 250,000 patients from neighboring countries annually.

The number of Arab and foreign patients who received treatment in Jordan increased by 10% in 2014.

Imports of medical equipment and pharmaceuticals exceeded $450 million in the year 2013 and are expected to grow to $615 million by the end of 2016.

10% of Jordan’s GDP goes toward healthcare Imports supply approximately 80 percent of Jordan’s demand

for medical equipment. 

Strength Strengths of the Jordanian market include:• strategic geographical location –

gateway between the east and the west

• Well educated and highly skilled workforce

• A favorable business environment• Competitive costs of doing business

Threat Doing business in Jordan comes with a few challenges.•Changes of parliament tend to take place every couple of years which leads to changing ministers who will often alter policy and amend regulations. It is advisable to always ask for the latest version of laws and regulations.

•Companies setting up in Jordan should be aware of the risks of getting established with the wrong partner. It can be very difficult and expensive to part ways and Jordanian courts will usually come down on the side of the local partner. Going to arbitration can take months and will also prove costly.

•Companies should also be aware of delays in payment.

Weakness•The competition in this sector is high due to many private companies in this sector.

•Jordan is a small market leading to low local market demand.

•Brand promotion is extremely difficult, making marketing of locally-produced medications weak.

•Labor cost is considered high relative to the competing markets like India

•Lack of government support in regards to R&D and the availability of funds to support it

Opportunity•Economic growth-Growth of 3.1% in Gross Domestic Product (GDP) and 2.9% inflation is forecast for 2015.

•Jordan economy is among the most open in the Middle East. The authorities have implemented structural reforms to develop the private sector.

•Priority sectors for economic development include healthcare

SWOT ANALYSISJordan Market

Local CompaniesAl-Razi Pharmaceutical Industries CoAmman Pharmaceutical Industries Co. (API)Arab Pharmaceutical Manufacturers (APM)Dar Al-Dawa (DAD)Hayat Pharmaceuticals Industries (HPI)Hikma PharmaceuticalsJordan Pharmaceuticals ManufacturingMidpharrmaUnited Pharmaceutical Manufacturing Ltd

MNCLeo Pharma, Novo Nordisk, and Lundbeck

The companies source their raw materials (APIs) mainly from Asian suppliers, mainly in India and China, on account of their low cost while keeping the quality intact. The excipients are sourced mainly from Europe.

Public-listed pharmaceutical companies in Jordan

There are seven public-listed pharmaceutical companies in Jordan. These are

Hikma Pharmaceuticals Dar Al Dawa Development and Investment Company

(DADI) Arab Pharmaceutical Manufacturing Company (APMC) Jordanian Pharmaceutical Manufacturing Company

(JPHM) Middle East Pharmaceutical and Chemical Industries

(MPHA) Hayat Pharmaceutical Industries (HPIC) Arab Center for Pharmaceutical and Chemical

Industries Company (APHC)

Non-listed pharmaceutical companies Among the non-listed pharmaceutical

companies, prominent players are Amman Pharmaceutical Industries Co. Jordan River Pharmaceutical Industries Jordan Sweden Medical and

Sterilization Co. Pharma International Co. Ram Pharmaceutical Industries Co. Ltd. United Pharmaceutical Manufacturing

Co. Ltd

Registration ProcessIn Jordan, the Jordan Food and Drug Administration is responsible for product registration, including assessment of clinical trials, bioequivalence studies, pricing, accreditation of pharmaceutical manufacturers, promotion of rational drug use, and post-marketing surveillance.

The approval process for new products takes approximately 12 months.A fast-track application may be requested for vital and highly required medication. This process may take 6 months.

Most Jordanian patients are insured in public hospitals. In order for public hospitals to acquire fast-tracked medication, the drug must be listed in the Rational Drug List of Jordan, a process that may take 1-2 years.

Registration Guidelines

Pricing differential

Generics

Locally Manufactured

Local MarketPrice is set to

compete With equivalents available in the

market

For ExportPrice is set to the

Maximum to provide a high reference price

Imported

The ceiling is either the

Price in the country of

Origin * or 80% of the originator Price

whichever is less

Distributor List Munir Sukhtian group Taj Pharma IBN SINA PHARMACY LEO Pharma Hayat Pharmaceutical Industries (HPI) TERUMO MEDICAL CORPORATION Al-Mutanabee Drug Store Local Distributor: Nairoukh Drug Store AL-Hokama Drug Store AL-Noor Drug Store Diraya Company Kutkut Drug Store Local Drug Store Mizar Drug Store N-EL-Taher Corporation New Jersy International Trading Co.

CONCLUSION

Jordan Pharmaceutical Market is Good to do Business But not Great.

Due to its low Local Demand.

But for Medical Equipment Industries it’s a great opportunity to

tap.