Syria: National Diamond for Pharmaceutical Industry

Submitted to: Dr. Archana Pillai Submitted By: Harshal Gandhi Nishant Rao

At the end of the 80ies, the pharmaceutical industry in Syria was very poor, covering only 6% of the national needs. In less than 20 years, with the government support in terms of legal frame and strategic political engagement, the Syrian pharmaceutical industry finally covered almost 92% of the national needs, in terms of drugs, and exported drugs in around 56 markets worldwide, mostly Arab and African nations and some Asian countries, with exports to European Union member states beginning more recently. Beyond covering the local market, the main added values of this huge development consisted in exporting drugs in amount of 150 million dollars per year. The number of pharmaceutical factories in Syria has reached 63, producing 5700 types of products and offering jobs to about 17000 workers, out of which around 85% are women. Syria has the largest number of pharmaceutical companies compared with any other Arab market, even though its domestic market size is smaller than many others. Private capital inflows have increased significantly in the last decade thanks to the involvement of several major industrial and trading groups in the drug industry. The two largest cities in the country, Aleppo and Damascus host the largest industrial firms. The Syrian pharmaceutical industry is producing good quality medicine based on international standards. The provision of safe and effective medicines is based on the essential medicine list. The government goal is monitoring the pharmaceuticals to ensure quality control. The results of quality control have been very good; however, the application of the national medicine policy and the rational use of medicines should be enforced. Factor Condition 63 manufacturing plants Due to the intensive ongoing training and rehabilitation programs, there are a large number of qualified workers with very high level of efficiency in the Pharmaceutical industry in Syria; over 25% of them are university graduates. Also the learning level is in initial level so the government helps people to learn them outside the country. And after getting the proper knowledge, they come back and serve their own country. Also, The Medical City is to be built in the West Mazzeh area of Damascus. The project is estimated to be around $112 million.

Syria: National Diamond for Pharmaceutical Industry

Demand conditions The signing of an association agreement with the EU in 2010 is expected to further expand the pharmaceutical market, which has become an increasingly vital export earner for the country. Production has reached almost 600 million dollars; the local market consumes more than 400 million dollars and the rest is sent for export. The industry has been stimulated by the special attention given to healthcare provision which has been offered as a free service to Syrian citizens. Public spending on health has run at around 4.5% of GDP. Also, a plan is being promoted for the production of generic drugs for cancer treatment, medicines related to blood diseases, vaccines, etc., and to cover 98 99% of the Syrian health sector needs is being implemented. According to this plan, the abovementioned products will be manufactured locally. Related and supporting industries The firms are importing the major raw material. So the opportunity exists in the production of the raw material for pharmaceutical product. Disadvantages of this system might be the development and growth of the pharmaceutical industry is done more horizontally than vertically; lack of attention to the production of the raw materials, which are still imported from abroad; weak cooperation between Syrian pharmaceutical companies and weakness in the pricing mechanisms. Firm strategy, structure and rivalry The industry has become more competitive gradually after 1980. Before that only 2 national firms were present. But now the picture has changed. Already more than 63 firms are there and new competitors are coming. The challenge is reviewing the medicines pricing base in accordance with the international specifications and within the moderate price range, elimination of foreign medicine, which are very expensive and helping producers to continue producing. The pharmaceutical industry is really very concentrated.