The document provides information on the pharmaceutical market and industry in Jordan. It notes that Jordan's pharmaceutical market size is close to $0.9 billion annually and the industry exports 80% of its production, mainly to other Arab countries. While medical equipment accounts for most imports, the local pharmaceutical manufacturing industry has been growing and consolidating. Major players in the domestic market include both multinational and local companies. The industry faces competition and a small local market but benefits from Jordan's strategic location and skilled workforce.

1. Jordan
Nawal Ragit
Business In
Pharmaceuticals

3. JORDAN MAP

4. Demographics
Population 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.)

5. Demographics
Major 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

6. Jordan-Market
 Total Exports $ 8.3 Billion
Jordan's main exports are textiles, potassium, phosphates, fertilizers, vegetabl
pharmaceutical products. Jordan's main export partners are Iraq, the United S
India, Saudi Arabia and Syria.

7. 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 partn
are Saudi Arabia, China, Germany, the United States and Italy.

8. 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

9. 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.

10. Pharmaceutical Products- Export & Domestic
Use
Pharma
Export
80%
Domestic
20%
Pharmaceutical Products- Export & Domestic
use
90% to
Arab
Countries
Domestic 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 countrie
and 90% of the exports are going to Arab countries (which is 849 Million $).
Jordan pharmaceutical companies have joint ventures and subsidiary companie
in 8 Arab and foreign countries.

11. Pharmaceutical Import
Medical
equipment
69%
Pharmaceutic
al
28%
Other
Medical
Products
3%
% Share
Imports of medical equipment and pharmaceuticals 0.6 Billion $ .
0.4 Billion $- Medical Equipment
0.17 Billion $ - Pharmaceutical Medicines
0.018 Billion $- Other

12. Total Demand Of Pharmaceutical Produc
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 Approx
Total Demand Medical Equipment : $0.5 Billion Approx
Total Import Medical Equipment $0.4 Billion Approx (80% import)
Total Demand Pharmaceutical medicines $0.45 Billion Approx
Local Manufacturer $0.28 Billion Approx
Pharmaceutical Medicine Import $0.16 Billion Approx

13. Market Share
50%50%
Market Share
MNCs Local Manufacturer

14. 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 group
Middle East
Pharmaceutical and
Chemical Industries
(MPHA),
Arab Center for
Pharmaceutical and
Chemical Industries
Company (APHC).

15. 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.

16. Major Disease
 Jordanians 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.

17. 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.

18. 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 ANALYSIS
Jordan Market

19. Local Companies
 Al-Razi Pharmaceutical Industries Co
 Amman Pharmaceutical Industries Co.
(API)
 Arab Pharmaceutical Manufacturers
(APM)
 Dar Al-Dawa (DAD)
 Hayat Pharmaceuticals Industries (HPI)
 Hikma Pharmaceuticals
 Jordan Pharmaceuticals Manufacturing
 Midpharrma
 United Pharmaceutical Manufacturing

20. MNC
 Leo Pharma,
 Novo Nordisk, and
 Lundbeck

21. 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.

22. 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)

23. 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

24. Registration Process
In 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

25. Pricing differential
Generics
Locally
Manufactured
Local Market
Price is set to
compete
With equivalents
available in the
market
For Export
Price 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

26. 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.

27. 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.