This presentations provides an overview about the pharmaceutical business in Middle East Africa Region as well as practical guidance about business operation for excellence

1. The recipe for excellence
Spotlight on MENA
PharmaSynergy, Rome, March 22nd 2018
Moustafa Magdy
Regional Marketing Manager
Allergan

2. The place and the entity
The customer
The product
How to do it?

3. The Place

4. Population
437M 3.1T
GDP Growth
3.3%
Health
expenditure
16.4B
GDP
756
646 654
403
349 358
KSA UAE
USD
2.7
3.3
1.7
3.0
Global MENA KSA UAE
%.
431
1,147
1,611
350
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
MENA KSA
UAE Iran
Healthcare
expenditure split 40%
60%
MENA KSA UAE IRAN
% of total healthcare
Health Exp
per Capita
GDP growth
MENA
25%
75%
22%
78%
59%
41% Private
Public
Source: The World Bank – Data Bank (Health Nutrition and Population Statistics) July 2017
M USD

5. Business environment in MENA How economies in MENA rank on the
ease of doing business?
Source: A World Bank Group Flagship report, 14th edition,
Doing Business 2017, Regional profile MENA
Source: MENARA working paper No. 3, 2017

6. The Pharma
Market

7. MEA Pharma Market… 22 Bn USD
• Jordan – Lebanon – Palestine- Iraq- Syria
• Population: 75.6 M
• GDP: 273 Bn$ (without Syria)
• Pharma market: 1.1 Bn$ (Only Lebanon and Jordan)
LEVANT
• Population: 21.7 M
• GDP: 654 Bn$
• Pharma market: 7.1 Bn$
SAUDI ARABIA
• UAE–Kuwait–Oman– Bahrain–Qatar-Yemen
• Population: 21.7 M
• GDP: 715 Bn$
• Pharma market: - UAE: 1.9 Bn$
- Kuwait: 0.9 Bn$
GCC Others
• Population: 80.2 M
• GDP: 419 Bn$ (without Syria)
• Est. Pharma market: 2 Bn$
IRAN
• Population: 95.7 M
• GDP: 332.8 Bn$
• Pharma market: 2.8 Bn$
EGYPT
• Morocco- Algeria- Tunisia
• Population: 87.2 M
• GDP: 304.7 Bn$
• Pharma market: 3.9 Bn$
• (Algeria 2.3 Bn, Morocco 1Bn, Tunisia 0.6 Bn)
NORTH AFRICA
Total Pharma Market size: 4.2 Bn$
• South Africa: 3.2 Bn$
• French West Africa: 1 Bn$
South Africa FWA
Sources:
- The World Bank – Data Bank (Health Nutrition and Population Statistics) July 2017
- IQVIA Pharmaceutical Market Insights Report – February 2018- Data: MAT Sept. 2017
Markets with Political unstability
MEA Pharma Market 2017
22.3 Bn$, 8% CAGR
KSA
7.1 B
SA
3.2 B
Egy
2.8 B
Alg
2.3 B
UAE
1.9 B
MENA Market: 18.1 Bn$

8. Market facts and trends
- Local/Regional companies have grown fast
mainly in Algeria and Egypt, growing by 18%
and 38% respectively.
- Top 10 Corporations have 39% Market share,
8.6 Bn$.
- Egypt is the largest volume contributor with
44% share.
3
0.8
0.8
0.7
1.5
Egypt Algeria KSA SA Others
• Local/Regional
manufacturers are
showing steady growth
in Market share YOY
7%
8%
-1%
4%
Source: IQVIA Pharmaceutical Market Insights Report – February 2018- Data: MAT Sept. 2017

9. Therapeutic classes
• Alimentary tract and
Anti-infective
therapeutic classes
contribute to 34% of
total pharma
business in MEA.
• Oncology products
leads the growth
both YoY and CAGR.
Source: IQVIA Pharmaceutical Market Insights Report – February 2018- Data: MAT Sept. 2017

10. Distribution per product type
• Branded generics business will continue to grow in emerging markets
• Generic competition is led by local and regional manufacturers.
• This is more evident in price sensitive markets (ex. Egypt)
Egypt top corporations
Saudi top corporations
Source: IMS MAT Q3 2017

11. 11Medical Korea 2017-ME Preread-Claudia Palme-Nov2017
Feasibility check Pharma: Type of product, approval type and localization option will
determine feasibility of access
Type of
product
Original/
IP-protected
Generic/OTC
• Some countries require localization of products suited for local
production – import might be impossible
• In general, the more specialized the product and form, the
better the potential (e.g. Injectibles, biologics, diagnostics)
Approval
type
No US or
European
approval
FDA/EMEA
approval /
respective GMP
• In principle, required for approval in all GCC markets –
however, ability for local production might severely
hinder approval times
Localization
approach Willing to
localize
No localization
possible
• Depending on country, different levels
of localization can enable approval as a
local product – secondary packaging
usually no more sufficient
For undifferentiated generic and/or non-
US/Europe-approved products, there
might not be any access without
localization
 

Original branded product
Specialty
Original branded product
Traditional
Branded Generic product
Differentiated
Branded Generic product
Undifferentiated
Only through localization

12. 12Medical Korea 2017-ME Preread-Claudia Palme-Nov2017
The place and the entity
The customer
The product
How to do it?

13. Different countries… Different cultures
Sz Gr
USA UK Italy ME MX
Swz Gr
USA
UK Italy &
Spain
ME
India ME UK USA
USA UK ME
China &
Japan
Holland,
GBR, Swz USA UK ME
Structured Time Flexible Time
Rule Relationship
Who you are What you do
Individual Group
Direct Indirect
The customer
Author: Umberto La Magna, General Manager – Regional Head Central South East Europe at Baxter International Inc.
Amended by: Wesam Nehad, Co-founder, Operation Director at MenaMark Midle East FZ-LLC

14. Healthcare Professionals
• Young Majority, Well Educated.
• Passionate about science and eager to learn.
• Willing to try new treatment and management
approaches.
• Appreciates interpersonal relationships.
• Well oriented about different roles and structures
within pharmaceutical companies.
• In GCC and Saudi, expat HCPs dominates the
private practice and are also present in the
governmental sector.

15. The place and the entity
The customer
The product
How to do it?

16. The recipe for excellence

17. 02
01
03
04
Innovative Product
Innovative communication
Innovative indications
Innovative agreements
Doing something NEW, Different…
and Useful

18. Affiliation
Maintaining strong business relationship with target customers
Source: The Importance of Business Relationships in the Middle East, https://www.commisceo-global.com/blog/the-importance-of-business-relationships-in-the-middle-east
Invest time
•Building
relationships
takes time
Small talk
•Never jump
straight into
business at a
meeting
Get
Personal
Use
networks
Keep your
word
Continuity
•Maintain the
relationship
continuity

19. Product Related education
(interventional products, innovative
dosage forms)
Continued Medical Education
(Credit hours needed for license renewal)
Therapy area education
(Specialized branded generic companies,
portfolio approach)
Soft skills education
(Presentation skills and TTT for KOLs)