TradeministerMeetingatAddisAbaba,Ethiopia.

Reports On: 1) Algeria 2) Burumdi 3) Chad 4)Egypt 5) Ethiopia 6)Equotorial Guinea 7)Kenya 8) Namibia 9) Nigeria 10) Malawi 11) Senegal 12) South Africa 13) Swaziland Pages 2 to 7. Pages 8 to 10 Pages 11 to 13 Pages 14 to 18 Pages 19 to 24 Pages 25 to 26 Pages 27 to 31 Pages 32 to 35 Pages 36 to 40 Pages 41 to 44 Pages 45 to 47 Pages 48 to 52 Pages 53 to 55

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Report on ALGERIA

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13th May 2011 To Manoj Kumar Section Officer- Ft(Africa), Department of commerce, Ministry of Commerce & Industry, Udyog Bhavan, New Delhi- 110107. Dear sir, Sub: TradeministerMeetingatAddisAbaba,Ethiopia. Ref: No 12/2/2011-FT(AF)-PT.File dated 4th May 2011 With reference to your above cited letter we have the following to submit. The demographic Statistics of Algeria is as follows
SL.No 1 2 3 4 5 Region Country Capital Population Populationgrowthrate(%) Parameter Africa ALGERIA Algiers 34,178,188 1.96% Description

6 7

GDP(purchasingpowerparity) GDPrealgrowthrate(%)

$233.5billion(2008 est.) 3.5%(2008 est.)

8 9 10 11

GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

$6,900(2008 est.) 63.25dinars/USDollar 23%(2006 est.) 014years:25.4 % 1564years:69.4% 65yearsandover:5.1%

Source:CIAWorldFactBookupdatedtojuly2010

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Algerian Pharma Market: This country has imported roughly USD 1826 million worth of Pharmaceuticals of all kind. Algeria is above average market amongst the region and stands 48th world wide as per BMI survey.

the government remains accused of giving preferential treatment to generics products and the domestic industry, while the country's wider intellectual property rights (IPRs) environment is also a cause for concern to multinationals operating there. As Generics dominate the market India has a lot of advantage in this market but may have to operate through nearby hub like Dubai or Saudi Arabia. The animosity caused between the foreign industry and the government by the enforcement of cost-containment and import-restricting measures could also hamper donations of essential medicines. Nevertheless, Algeria continues to forge closer ties with other Arab nations, officially becoming a member of the Greater Arab Free Trade Zone (now numbering 18 countries) at the start of 2009, and also finalising a preferential trade agreement with Tunisia. Algeria already stipulated that 45% of all imports must be generics, with such trade - on a regional basis therefore likely to be facilitated and stimulated by economic cooperation.. The incidence of diabetes (especially type II) is on the rise in Algeria as both affluence and urbanisation increase. Official figures estimate that around 8% of Algerians suffer from the condition. In addition, around 40,000 new cases of cancer are registered each year, although the country only has four specialist oncology centres. In response to mounting criticism about the lack of adequate treatment facilities, plans have been announced to increase the number of cancer treatment centres in Algeria from four to 17, as well as to build a National Cancer Care Institute in Oran. The Minister of Health, Djamel Ould Abbas, has also pledged to purchase more equipment.

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Following is the bilateral trade between Algeria and India Table-Algeria-1

Fig:1 India's Pharmaceuticals Trade with Algeria(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 6.69 19.78 26.95 79.41 0 INRCr USD mn 4.57 26.57 0.02 21.10 122.08 0.0785 INRCr USD mn 9.57 22.6 0.03 45.30 107.18 0.1438 20 % Formulation Herbal 7% 16% 0.66 0.95 0.02 0.09 0.76 7 30% INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn INR Cr USD mn 0.06 0.25 INRCr USD mn 0.25 INR Cr 1.17 200910 CAGR (200709) %
USD

IN R

Source CMIE/DGCIs /Pharmexcil research

Algeria ranks 13th amongst Indias pharmaceutical exports to Africa region. Table-Algeria-2
ToptencountriesexportingformulationstoAlgeria(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare YOY% 1 France 581.1704 750.5608 651.4597 37.34 37.34 13.20 2 Switzerland 164.0307 111.8371 150.7507 8.64 45.97 34.79 3 Spain 72.24151 124.37 121.4606 6.96 52.94 2.34 4 Denmark 42.11297 71.42018 118.7066 6.80 59.74 66.21 5 Germany 69.87242 112.8368 108.4558 6.22 65.95 3.88 6 Jordan 83.33102 109.8565 91.0052 5.22 71.17 17.16 7 Italy 79.89294 110.047 86.94265 4.98 76.15 21.00 8 UnitedKingdom 94.59426 87.64682 61.32582 3.51 79.67 30.03 9 India 29.19189 43.57667 46.03068 2.64 82.31 5.63 10 USA 26.94901 43.14218 41.08838 2.35 84.66 4.76 Algeria'stotalimports 1449.363 1850.083 1744.895 100.00 5.69 Source:UNComtrade

CAGR 6% 4% 30% 68% 25% 5% 4% 19% 26% 23% 10%

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India is ranked as 9th amongst the formulations exporting countries to Algeria. In 2009 India has grown by5.63% while Algerias total imports have grown negatively by 5.69%. Thus india has improved its market share in Algerian imports of formulations.

Table-Algeria-3
ToptencountriesexportingBulkDrugstoAlgeria(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare 1 France 7.13 12.12 14.61 38.25 38.25 2 China 2.62 5.63 9.75 25.54 63.79 3 India 4.00 3.92 4.45 11.66 75.45 4 Italy 1.66 1.92 2.00 5.22 80.67 5 Ireland 1.89 1.37 1.67 4.37 85.04 6 Spain 1.10 0.72 1.24 3.26 88.29 7 8 9 10 Germany CzechRep. UnitedKingdom USA Algeria'stotalimports 0.84 0.61 0.41 1.39 1.17 0.28 0.97 0.63 0.50 2.54 1.65 1.31 1.02 100.00 90.83 92.48 93.79 94.81

0.13 0.45 0.39 22.33615 31.8301 38.18978 SOURCE:UNCOMMTRADE

YOY% 20.51 73.22 13.66 3.68 21.36 71.56 30.38 45.90 76.00 12.81 19.98

CAGR 43% 93% 6% 10% 6% 6% 7% 2% 11% 74% 31%

Exports of Bulk drugs to Algeria have grown by 13.66% in 2009 after a negative marginal growth in 2008. Indias growth has been slower than the Algerian total imports. China s exports have grown considerably during the same time and china has improved its market share by 150% between 2007-2009, while Indias share remained static during the same period.

Algeria is a part of MENA(Middle east and North Africa) Region. The recent changes in regulatory laws has made the market attractive many MNCs. The recent laws similar to USFDA and UKMHRA. In Algeria the registration activity is very strict and they follow US FDA norms. Page | 6

They accept products from US FDA approved plants and at the same time they want Common Technical Document (CTD) format dossier, with Drug Master Files (DMF) grade raw materials. Registration is a very long process and hence it is advisable to tie up with local manufacturers for co-branding registration.

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Report on BURUNDI

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BURUNDI: The demographic Statistics of Burundi is as follows: SL.No 1 2 3 4 5 6 7 Region Country Capital Population Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) Parameter Africa BURUNDI Bujumbura 10,216,190(July2010est) 3.462% $3.418(2010est.) 3.9%(2010est.) Description

8 9 10 11

GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

$300(2010est.) 1,250.75 Burundi Francis/US Dollar 68%(2003est.) 014years:46% 1564years:51.6% 65yearsandover:2.5%

Source:CIAWorldFactBookupdatedtojuly2010

Following is the bilateral trade between Burundi and India

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Burundi Table-1
Fig:1 India's Pharmaceuticals Trade with Burundi(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 0.07 5.11 0.2822 20.617 9 Herbal 0 INRCr USD mn 0.42 8.19 1.9812 37.617 7 0 INRCr USD mn 0.56 6.75 2.6683 37.617 7 0 183 % Formulation 15 % 35% 0.01 0.04 207% INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn INR Cr USD mn INRCr USD mn INR Cr 200910 CAGR (200709) %
USD

IN R

Source CMIE/DGCIs /Pharmexcil research

Burundi ranks 29th amongst Indias pharmaceutical exports destination countries to African region. Burundi is a part of COMESA (Common Market for Eastern and Southern Africa) and has common drug regulatory laws. Burundi Table-2
ToptencountriesexportingformulationstoBurundi(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare 1 India 10.83 6.77 9.91 33.53 33.53 2 Belgium 0.01 14.94 6.87 23.25 56.78 3 Kenya 0.93 4.70 15.90 72.68 4 France 0.03 2.17 2.83 9.58 82.26 5 Denmark 0.27 0.90 1.60 5.42 87.68 6 China 0.68 1.40 4.74 92.42 7 Dem.Rep.oftheCongo 0.24 0.55 1.88 94.30 8 Netherlands 0.01 1.71 0.54 1.83 96.12 9 Switzerland 0.51 0.32 0.48 1.62 97.74 10 Italy 1.10 0.01 0.21 0.70 98.44 Burundi'stotalimports 25.86 32.02 29.55 100.00 Source:UNComtrade

YOY% 46.40 54.02 404.15 30.62 78.20 106.95 135.09 68.44 48.77 1376.27 7.71

CAGR 0.04 25.89 9.49 1.45 5.63 0.03 0.57

India tops the list of formulation exporters to Burundi with 47% year on Year growth in 2009, but has a negative CAGR calculated over three years (2007-2009). China which has just entered the market is beginning to make a dent. UN comtrade has no records of Burundis import of Bulk drugs. Page | 10

Report on CHAD

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CHAD: The Demographic statistics is as follows:

SL. No 1 2 3 4 5 6 7 8 9 Region Country Capital Population

Parameter CentralAfrica Chad NDjamena

Description

10,758,945(July2011est.) 2.009%(2011est.) $18.56billion(2010est.) 2%(2010est.) $1,800(2010est.) 1 $ = 495.28(XAF)co operation financiere en afriquecentralefrancs(2010est.) 80%(2001est.) 014years:46% 1564years:51% 65yearsandover:2.9%(2011est.)

Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

10 11

Source: CIA World Fact Book updated to April 2011

Following is the bilateral statistics between India-Chad.

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Fig:1 India's Pharmaceuticals Trade with Chad(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 0.19 0.7269 INRCr USD mn 0.05 0.2511 INRCr USD mn 0 0.0047 100 % Formulation 4.24 17.014 4 Herbal 2.36 10.846 1 4.42 21.027 1 2% 11% 92% INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn 0.19 INR Cr 0.76 USD mn INRCr USD mn INR Cr 200910 CAGR (200709) %
USD

IN R

Source CMIE/DGCIs /Pharmexcil research

There are no trade records of Chad with UN COMTRADE.

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Report on EGYPT

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EGYPT: Following is the demographic statistics of Egypt SL.No 1 2 3 4 5 6 7 Region Country Capital Population Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) Parameter Africa EGYPT Cairo 83,082,869(July2009est) 1.642% $444.8billion(2008est.) 7.2%(2008est.) Description

8 9 10 11

GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

$5,800(2008est.) 54EgyptianPounds/USDollar 20%(2005est.) 014years:31.4% 1564years:63.8% 65yearsandover:4.8%

Source:CIAWorldFactBookupdatedtojuly2010 Egypt is a member of COMESA and also of MENA.

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Regulatory requirement: MENA regulatory environment is characterised by tough entry barriers largely to protect local industry, restrictive price controls and strict factory audits. The patents production, novel drug discovery and strong influence of Western world keeps alive the interest of MNC's in the MENA market. The regulated market remains high and MNCs have been enjoying monopoly with very high pricing. Indian pharma companies operating in these regions found that doing business here is more time consuming due to mandatory plant inspection and other stalwarts of the regulated market. There is also a preference for US FDA or UK MHRA labelled principle. As per the current norms, pricing is based on the price determined by the emerging country in the absence of a formal price regulating authority, which is another advantage enjoyed by MNCs. and require a manufacturing unit to show compliance on parameters like bio equivalence and bio availability for plant approvals. Egypt Pharma Market A recently released report from IMS, Pharmerging Shake-up: New Imperatives in a Redefined World, has formally inaugurated Egypt as a tier 3 pharmerging country. The report comments that: Egypt, too, while long overdue for increased healthcare investment and tighter IP regulations, offers rising potential with a fast-growing population, widespread access to healthcare, significant growth in the dominant retail market, and a relatively quick drug approval process. Even with the global economic downturn, the Egyptian pharma market is posting astonishing double-digit growth15% YTD as of June 2010. In October 2009, the MOH issued a new pricing decree in Egypt In essence, this allows the tariff pricing of new products in reference to their prices in 36 countries (lowest minus 10%). In spite of the obvious drawback of this decree, this step was seen by the industry as a positive development. Tariff pricing of pharmaceutical products in Egypt was considered an opaque process that had no rules. Consequently, pricing is a major entry barrier for new products in Egypt. (See Egypt: Emerging pharma market, part 2.) Meanwhile, the MOH has surprised everybody with an obligatory decrease of prices for almost 100 key products! This decrease is fully effective in July 2010. The Minister of Health is also saying that more cuts are coming! Egypt as a pharma market is becoming more visible within the corporate world as having growth potential, and thus the expectations have risen. Page | 16

On the negative side, the environmentespecially dealing with government and regulatory bodiesis not getting better, at least for the time being. This can impose painful setbacksdelays in the introduction of new products, unexpected price cuts. Considering opportunities beyond BRIC pharmaceutical markets, Egypt is becoming a very attractive market for multinational pharmaceutical companies focused on emerging markets. Egypt Statistics: Following are the details of India-Egypt bilateral trade. Egypt Table-1
Fig:1 India's Pharmaceuticals Trade with Egypt(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 45.28 13.97 182.25 56.41 INRCr USD mn 41.6 33.07 191.00 151.88 INRCr USD mn 49.92 8.72 236.79 41.39 5% 21 % Herbal 0.29 1.14 0.28 1.31 0.36 1.69 11 % Source CMIE/DGCIs /Pharmexcil research 21% 14% 14% INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn 2.85 0.72 INR Cr 11.45 2.93 USD mn 1.16 0.6 5.33 2.68 INRCr USD mn 2.38 0.08 INR Cr 11. 19 0.36 9% 67% 1% 65% 200910 CAGR (200709) %
USD

INR

Formulation

Following are the imports of Egypt:

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Egypt Table-2
ToptencountriesexportingformulationstoEgypt Rank Exportingcountry 2007 2008 2009 %share 1 Switzerland 20.59 206.30 18.91 2 Germany 145.59 159.50 14.62 3 France 38.24 93.07 8.53 4 Belgium 23.81 71.50 6.56 5 USA 31.09 67.07 6.15 6 Denmark 3.21 49.84 4.57 7 Ireland 5.61 47.81 4.38 8 Netherlands 17.05 44.24 4.06 9 UnitedKingdom 15.18 41.40 3.80 10 SaudiArabia 12.62 33.94 3.11 11 India 2.11 26.96 2.47 Egypt'stotalimports 434.22 1090.67 100.00 SOURCE:UNCOMTRADE NorecordswithUNComtrade

Cumshare 18.91 33.54 42.07 48.63 54.78 59.35 63.73 67.79 71.58 74.69 77.17

YOY% 901.91 9.55 143.40 200.24 115.72 1450.82 752.42 159.51 172.79 168.94 1179.29 151.18

Egypt Table-3
ToptencountriesexportingBulkdrugstoEgypt(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare 1 China 15.00 29.36 16.81 16.81 2 Germany 28.59 28.61 16.38 33.19 3 India 4.93 18.99 10.87 44.07 4 France 8.36 18.39 10.53 54.59 5 Italy 6.27 15.99 9.15 63.75 6 UnitedKingdom 6.77 12.06 6.90 70.65 7 USA 3.61 9.57 5.48 76.13 8 Spain 4.57 7.72 4.42 80.55 9 Switzerland 1.70 7.47 4.28 84.83 10 Ireland 7.35 6.81 3.90 88.73 Egypt'stotalimports 94.11 174.64 100.00 188.73 SOURCE:UNCOMTRADE NorecordswithUNComtrade

YOY% 95.73 0.08 285.12 119.86 155.16 78.13 165.30 68.70 339.46 7.33 85.58

Recent regulatory changes in Egypt seem to have affected Indian Exports to that country. Our bulk drug exports are on a healthy growth. Our formulations exports show a negartive growth of over 60% during 2009-10(Refer Egypt Table-1) though CAGR as shown is only -14%. As we are not having the details of total imports of Egypt during the calendar year 2009, the analysis could not have been more substantial. Page | 18

Report on ETHIOPIA

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ETHIOPIA : Following are the demographic statistics of Ethiopia.

SL. No 1 2 3 4 5 6 7 8 9 10 11 Region Country Capital Population

Parameter Africa ETHIOPIA AddisAbaba

Description

90,873,739(July2011est) 3.194%(2011est.) $84.02(2010est.) 7%(2010est.) $1000(2010est.) 1$=14.4Birr(2010est.) 38.7%(FY05/06est.) 014years:46.3% 1564years:51% 65yearsandover:2.7%(2011est.)

Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

Source: CIA World Fact Book updated to july 2010 Ethiopia is a member of COMESA and has regulatory laws pertaining to the Group.

Ethiopia does not have a highly developed drug-manufacturing sector. Domestic market is highly dependent on imports as the local manufacturing units cover only a small portion of the requirement for domestic needs. The Ethiopian pharmaceutical manufacturing is the oldest and the only pharmaceutical manufacturing unit owned by the Government, the rest being in the private sector. It is estimated that the Ethiopian market is around US$ 200 million, in the year n 2008 which can be divided as under: Page | 20

(i)

Purchases/Imports through tenders by Ministry of Health and NGOs (TB, HIV and malaria drugs) : US$ 100 million

(ii)

Purchases/Imports through tenders by PHARMID, Government owned company (general medicines): US$ 30 million

(iii)

Purchases/Imports by Trade market (general medicines) : US$ 70 million

Most major international companies have presence in Ethiopian market. These include Glaxo, Pfizer, Ranbaxy, Cadila, Novartis, etc. The market is growing at about 8-10% per annum. Of this, 75-80% demand is met through imports and the balance by local manufacturers. There are no local manufacturers to produce TB and HIV medicines and these are totally imported. None of the local manufacturers presently comply with the cGMP practices. The Ethiopian Pharmaceutical and Medical Supplies Manufacturers Association noted that at the moment the staggering and young industries in the sector are being hit hard by the extremely high tariff rates imposed on their import of raw materials making it hard for them to remain competitive in the market. According to the President of Ethiopian Pharmaceutical and Medical Supplies Manufacturers Association, finished medical products that are imported to the country are taxed only five per cent rate while more than thirty percent taxation is levied on the imported raw materials. So far four companies are temporarily out of production. The Association is pursusing for zero tariffs on raw materials.

East African Pharmaceuticals PLC is a joint venture company of nationals from Sudan and UK, which manufactures human, and veterinary medicines and drugs.

v Sunshine Pharmaceuticals is a joint venture between Jianxi Corporation, a Chinese state company, and an Ethiopian investor. The plant will manufacture 39 different types of medical products, with focus on third-generation medicines and anti-viral capsules and tablets. A second plant will manufacture penicillin. This would make it the second penicillin manufacturing company in Ethiopia after the state-owned Ethiopian Pharmaceutical manufacturing Company. Cadila Pharmaceuticals Ethiopia PLC Page | 21

A joint venture between Indias Cadila Pharmaceuticals, (the majority share holder) and an Ethiopian firm, Almeta IMPEX, started production at a new, Birr 100 million (US$11.4 million) facility in Akaki town, Ethiopia on September 22, 2007. The plant has the capacity to manufacture 390 million tablets, 165 million capsules and 1.44 million liters of liquid medicines annually. Cadila Pharmaceuticals Ethiopia PLC (CPEL) mainly focuses on therapeutic areas such as Cardiovascular, Anti Diabetes, gastroenterology (anti-acids, anti-ulcerative), AntiInfective, Anti-Depressants, Anti Fungal, Anti-TB, Anti Malarial, Anti Retroviral, AntiAmoebic, Haematinics, Anti Allergic, Pain killers, Multi vitamins, etc. Indias export in this sector mainly consists of finished products and raw materials. Major drugs and pharmaceutical items exported by India to Ethiopia include vaccines, antibiotics, penicillin, medicaments of alkaloids or derivatives, medicaments of other hormones, vitamins, anesthetics medicaments of mixed/unmixed products, Adhesive dressings, wadding, gauze, first-aid kits, etc. India is the major exporter of Bulk and formulations to Ethiopia Following are the statistics of pharmaceutical trade.

Ethiopia Table-1
Fig:1 India's Pharmaceuticals Trade with Ethiopia(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug Formulation Herbal 1.7 33.17 6.8 133 INRCr USD mn 0.89 47.45 4.0 217 INRCr USD mn 1.83 34.36 8.66 162 3 1.3 12 10 INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn INR Cr USD mn INRCr USD mn INR Cr 200910 CAGR (200709) %
USD

IN R

Source CMIE/DGCIs /Pharmexcil research

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Ethiopia Table-2

ImportsofEthiopia'sBulkinUSDmillion Country 2007 2008 2009 %share China 2.01 2.49 4.05 33.97 Oman 2.53 3.18 26.66 India 4.46 3.68 3.14 26.42 Denmark 0 0.10 0.38 3.19 USA 0.01 0.0 0.3 2.56 Germany 0.07 0.01 0.24 2.04 SouthAfrica 0.08 0.30 0.24 2.00 UnitedKingdom 0.05 0.01 0.24 1.99 Grandtotal 6.99 9.43 11.91 100.00 SourceUNCOMTRADE

YOY%
62.72 25.78 14.7

CAGR 42% 424% 16% >>>% 81% 68% 117% 31%

>>>
1674.98 21.29 2120.36 26.29

Ethiopia Table-3
ImportsofEthiopiasFormulationsinUSDmillion Country 2007 2008 2009 %share YOY% India 35.08 70.25 75.62 23.40 7.64 USA 37.16 13.42 57.19 17.70 326.31 Rep.ofKorea 29.26 31.55 29.12 9.01 7.71 Italy 6.51 2.23 54.26 16.79 2327.84 Netherlands 21.54 11.53 31.14 9.64 170.01 Denmark 15.48 14.29 14.78 4.57 3.42 Belgium 31.92 4.20 6.80 2.10 61.68 China 3.53 8.46 8.17 2.53 3.38 Germany 5.83 7.65 5.11 1.58 33.23 Switzerland 2.84 4.59 6.73 2.08 46.68 Grandtotal 216.01 213.12 323.14 100.00 51.62 SourceUNCOMTRADE

CAGR 47% 24% 0% 189% 20% 2% 54% 52% 6% 54% 22%

India has lost its market share both in bulk and formulation sector though marginally in case of formulations. In bulk drug sector china has grown considerably at 62.72 Year on year while we have grown negatively by almost 15%( Refer Ethiopia Table-2). India has been pushed down to 3 rd position as an exporter of APIs to Ethiopia. China has cornered most of our business.

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Report on Equatorial Guinea

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Equotorial Guinea: Following is the demographic statistics of the nation.

Following is the bilateral Trade statistics Between India-Equatorial Guinea. SL. No 1 2 3 4 5 6 7 8 9 Region Country Capital Population Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%) Parameter WesternAfrica EquatorialGuinea Malabo 668,225(July2011est.) 2.64%(2011est.) $24.4billion(2010est.) 0.9%(2010est.) $37,900(2010est.) 1USdollar=495.28CooperationFinanciere enAfriqueCentraleFrancs 10 11 N/A 014years:41.5% 1564years:54.4% 65yearsandover:4.1% Source: CIA World Fact Book updated to April 2011 Description

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Following is the bilateral trade statistics between India Equatorial Guinea

Fig:1 India's Pharmaceuticals Trade with Equatorial Guinea(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 0 0.028 0.0018 1.1578 INRCr USD mn 0 0.34 0.002 1.5771 INRCr USD mn 0.05 0.25 0.2369 1.184 6% Herbal 1047 % Formulation 1% INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn INR Cr USD mn 0.01 0.03 INRCr USD mn INR Cr 200910 CAGR (200709) %
USD

IN R

Source CMIE/DGCIs /Pharmexcil research

Equatorial Guinea ranks 44th amongst 51 African destination countries of Indian exports. UN comtrade does not have records pertaining to this country

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Report on KENYA

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KENYA: Following are the demographic statistics of Kenya.

SL. No 1 2 3 4 5 6 7 8 9 Region Country Capital Population

Parameter

Description (CIS)EasternAfrica Kenya Nairobi 41,070,934(July2011est.) 2.462%(2010est.) US$65.95billion(2010est.) 4%(2010est.) $1,600(2010est.) 79.217Kenya shellings(KES)/US Dollar (2010 est.) 50%by2000 014years:42.2% 1564years:55.1% 65yearsandover:2.7%

Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

10 11

Source: CIA World Fact Book updated to July 2010

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Pharma market of Kenya: During 2009 Pharma market size in Kenya was USD 352 million with a Year on year growth of 4.5%. the market is expected to touch USD 898 Million by 2014 with a double digit growth rate as the economy is looking up. During 2009 Kenya has also exported over 100 million USD worth of pharmaceuticals and it is difficult to asses the actual exports of Kenya (exports of its own production) as Kenya is a landlocked state and is a trading nation thus a large component consists of re exports. This geographical location of Kenya is a possible attraction to many companies to setup manufacturing units there to cater to the needs of most of East Africa. A report from the Ministry of Public Health and Sanitation said that it was anticipating a rise in the numbers of multi-drug resistant tuberculosis cases in 2010 to nearly 400, up from the 112 confirmed cases in 2009. Subsequently, in March 2010, the Kenyan government announced that it would be the sole procurer of all tuberculosis medicines to be consumed in the country therefore assuming the role as the sole supplier of drugs for public and private drug outlets, including chemists. The motivation behind the government's decision is the revelation that there is no uniformity in tuberculosis treatment prescriptions. In some cases patients are prescribed the wrong medication, resulting in the resistance to drugs - a factor that works against disease control efforts. There are more than 30 manufacturing companies in Kenya. Following are the bilateral statistics between India-Kenya followed by The Kenyas import statistics Kenya Table-1
Table-1 India's Pharmaceuticals Trade with Kenya(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 10.5 INRCr USD mn 15.74 INRCr 72.3 USD mn 16.1 76.84 24 35 INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn 0 INR Cr 0.019 USD mn 0.26 1.1599 INRCr USD mn 0.14 INR Cr 0.657 200910 CAGR (200709) %
USD

IN R

42.13
323.46

Formulation

80.3

102.6

471.31

100.3

475.59

12

21

0.04

0.166

0.22

1.002

0.00

Source CMIE/DGCIs /Pharmexcil research

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Within the African region Kenya is the third largest destination country of Indias Pharmaceutical exports. The trade in 2009-10 has been below the average growth of Indian exports, however during the year total imports of Kenya has experienced a negative growth of almost 8%. Most of the market analysts feel that Kenyas market is likely to expand and grow over 12% in the next decade and is a good investment for manufacturers. Kenyas imports: Kenya Table-2
TopTenCountriesexportingFormulationstoKenya(inUSDMn) Country India SouthAfrica Uganda Switzerland UnitedRep.ofTanzania USA Denmark UnitedKingdom France China KenyaTotalimports 2007 68.09 13.93 18.08 21.88 19.52 4.08 3.71 20.13 11.18 12.03 2008 113.34 16.63 16.89 25.31 33.37 10.78 13.51 16.27 11.55 11.22 2009 95.42 24.51 21.17 20.50 18.31 16.69 16.65 15.54 11.79 11.35 352.73 %share Cagr 27.05 6.95 6.00 5.81 5.19 4.73 4.72 4.41 3.34 3.22 18.38 32.68 8.20 3.20 3.15 102.23 111.77 YOY2009 15.81 47.37 25.36 19.00 45.13 54.74 23.31 Rank 1 2 3 4 5 6 7 8 9 10

12.14 4.47 2.72 2.88 2.14 1.13 8.99

291.31 387.55

100.00 10.04

Source:UNComtrade/Pharmexcilresearch

Page | 30

Kenya Table-3
TopTenCountriesexportingFormulationstoKenya(inUSDMn) Country India SouthAfrica Uganda Switzerland UnitedRep.ofTanzania USA Denmark UnitedKingdom China France Kenya 2007 72.81 14.46 18.43 23.05 19.53 4.11 3.84 20.71 14.19 11.20 2008 118.21 17.36 17.50 25.68 33.39 10.86 13.91 16.69 13.07 11.59 2009 101.10 25.20 21.63 20.78 18.38 16.87 16.74 15.89 14.11 11.81 366.22 %share Cagr 27.61 6.88 5.91 5.68 5.02 4.61 4.57 4.34 3.85 3.22 17.84 31.99 8.33 5.03 2.99 102.58 108.71 YOY2009 14.47 45.12 23.59 19.05 44.96 55.40 20.36 Rank 1 2 3 4 5 6 7 8 9 10

12.39 4.74 0.28 2.70 7.96 1.93 8.76

308.68 401.37

Source:UNComtrade/Pharmexcilresearch

Kenyas imports both APIs and formulations almost in same proportions. India ranks the highiest among their importers both the categories (Bulk drugs & formulations). Table-2 shows that Kenyas imports of bulk drugs is growing negatively by almost 9%, during the same period Indias exports to Kenya has also grown negatively but by a larger percentage of 15.81% and loosing a market share of nearly 2.5%. Most of this has been gained by South Africa. Table-3 shows even formulation imports of Kenya has grown negatively by again by 9% and india too repeated its performance of bulk drugs trade in this sector too loosing market share by 2.5% and grew negatively by 14.5%.Even in This sector it is South Africa which has gained most of our market share with a Year on year(YOY) of 45 % and its market share went up from 4.3 to 6.88 and almost 8 USD million incremental sale in 2009.

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Report on NAMIBIA

Page | 32

NAMIBIA Following is the demographic statistics of Namibia. SL.No 1 2 3 4 5 6 7 Region Country Capital Population Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) Parameter Africa NAMIBIA Windhoek 2,147,585(July2011est) 0.873% $14.64(2010est.) 4.1%(2009est.) Description

8 9 10 11

GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

$6,900(2010est.) /USDollar 55.8%(2005est.) 014years:34.2% 1564years:61.7% 65yearsandover:4.1%

Source:CIAWorldFactBookupdatedtojuly2010

Page | 33

Namibia is one of the few economies in Africa that is not completely reliant on financial aid to develop its healthcare system. A large pool of resources is being allotted to the healthcare industry to improve the primary healthcare structure and manage the massive HIV/AIDS disease burden. Impressive public health initiatives are underway in the treatment of HIV/AIDS, opening up abundant opportunities in the healthcare industry. The increased budget allocation by the Ministry of Health and Social Services (MoHSS) for the HIV/AIDS treatment program has given a huge thrust to the sales of pharmaceutical products. There are adequate funds for both existing and new health initiatives. As basic public healthcare services expand, companies stand to gain by working with the Government. Such conducive conditions have helped pharmaceuticals to widen their product reach. For instance, from a few hundred patients in 2003, antiretroviral (ARV) is being rolled out for 66,000 patients in 2008. Subsequent demand for ARV supply has increased substantially and constitutes a significant portion of the central medical stores (CMS) pharmaceutical purchases, notes the analyst. At current capacity, 1,300 new patients are enrolled every month for this therapy. Namibia Table-1
Fig:1 India's Pharmaceuticals Trade with Namibia(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 0.68 6.24 2.7494 25.149 INRCr USD mn 0.26 12.71 1.1746 58.40 INRCr USD mn 1.89 12.02 8.9348 56.97 67 % Formulation 39 % Herbal 51% 80% INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn INR Cr USD mn INRCr USD mn INR Cr 200910 CAGR (200709) %
USD

IN R

Source CMIE/DGCIs /Pharmexcil research

Namibia is 21 st largest destinations in the African region. India because of its wide range of ARVs being approved by WHO is in the most advantageous position to bag lions share of ARV business.

Page | 34

Imports of Namibia Namibia Table-2

ToptencountriesexportingformulationstoNamibia(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare YOY% 1 SouthAfrica 88.898029 87.35221 73.65 73.65 1.74 2 India 7.289836 24.80925 20.92 94.57 240.33 3 Botswana 0.64472 0.734762 0.62 95.19 13.97 4 USA 0.274807 0.696506 0.59 95.77 153.45 5 Denmark 0.686879 0.64576 0.54 96.32 5.99 6 Netherlands 0.975707 0.600058 0.51 96.82 38.50 7 China 0.024403 0.562268 0.47 97.30 2204.09 8 Angola 0.780904 0.523444 0.44 97.74 32.97 9 Zambia 0.001987 0.462255 0.39 98.13 23163.97 10 Zimbabwe 0.005161 0.415931 0.35 98.48 7959.12 Namibiatotalimports 101.224717 118.6061 100.00 198.48 17.17 SOURCE:UNCOMTRADE

Namibia-Table-3

ToptencountriesexportingBulkdrugstoNamibia(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare 1 SouthAfrica 1.886022 1.625939 92.52 92.52 2 Angola 0.078568 0.04398 2.50 95.02 3 India 0.000027 0.027846 1.58 96.61 4 Cyprus 0.022018 1.25 97.86 5 Netherlands 0.501797 0.01483 0.84 98.71 6 USA 0.190817 0.008553 0.49 99.19 7 Indonesia 0.002413 0.003212 0.18 99.38 8 Germany 0.009401 0.002593 0.15 99.52 9 Botswana 0.000161 0.00247 0.14 99.66 10 Ethiopia 0.002446 0.14 99.80 Namibiatotalimports 2.857586 1.757357 100.00 SOURCE:UNCOMTRADE NorecordswithUNComtrade

NorecordswithUNComtrade

YOY% 13.79 44.02 >>>> 97.04 95.52 33.11 72.42 >>>> 38.50

Namibias regulations are based on cGMP certificates issued by WHO and the formats are not complicated.

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Report on NIGERIA

Page | 36

NIGERIA: Following are the demographic statistics of Nigeria.

SL.No 1 2 3 4 5 6 7 Region Country Capital

Parameter Africa Nigeria

Description

Bangkok 155,215,573 1.94% $369.8billion(2009est.) 6.8%(2009est.)

Population Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%)

8 9 10 11

GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

$2,400(2009est.) 30.77bhat/USDollar 70%(2003est.) 014years:40.9% 1564years:55.9% 65yearsandover:3.1%

Source:CIAWorldFactBookupdatedtojuly2010

Page | 37

Market of Nigeria

In 2009, pharmaceutical expenditure in Nigeria reached NGN89.74bn (US$0.600bn) and BMI expects spending on medicines to reach NGN103.21bn (US$0.693bn) in 2010 - a 15.0% increase in local currency terms and 19.1% increase in US dollar terms. By 2014, it is estimated Nigeria's pharmaceutical market will be worth NGN177.49bn (US$1.443bn), equating to a compound annual growth rate (CAGR) of 14.62% in local currency terms and 19.18% in US dollar terms. Furthermore, over extended 2009-2019 forecast period, it is calculated that drug spending will reach a value of, NGN319.21bn (US$2.850bn). BMI attributes the Nigerian pharmaceutical market's impressive growth to macroeconomic factors such as the growth in GDP, increasing fiscal expenditure by the government and a growing population. Pharmaceutical firms have long regarded Nigeria with interest, chiefly because of its massive middle-class population and rising GDP. Low drug spending by a large population is still attractive to drugmakers, particularly those with generic medicines and essential over-the-counter (OTC) drugs. The latter is significant analgesic OTC drugs feature heavily in terms of sales volumes and BMI believes spending in this segment will continue to comprise just under one-fifth of total pharmaceutical spending in Nigeria in the medium term. It is expected that Nigeria to be very much in the stages of high essential medicine demand, a key reason that the OTC market forms a generous proportion of all medicine expenditure. Hence it is an important market for India. Furthermore, while fiscal expenditure is to rise, the government budget voted through in March 2010 has allocated only NGN112bn (just 2.4% of an overall NGN4.6tn budget) to healthcare spending. Many efforts have already been made to boost domestic production in Nigeria and enable the country to meet its Millennium Development Goals (MDGs), such as the pharmaceutical import ban on essential medicines that can be produced locally in 2005. The effect of this ban, however, was a shortage of essential drugs, higher prices and the opening of the market to counterfeit manufacturers that capitalized on the shortages. In fact, in January 2010, Nigeria was one of only Page | 38

eight countries in the world with prohibitively high drug prices, despite having one of the smallest mark-ups. This also has been one of the reasons for many counterfeit drugs finding its way to Nigeria. Nigerian Market statistics
Fig:1 India's Pharmaceuticals Trade with Nigeria (Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 21.18 144.1 6 0.002 Source CMIE/DGCIs /Pharmexcil research 0.0867 85.33 581.57 INRCr USD mn 38.22 188.4 2 0 0 175.49 865.25 INRCr USD mn 22.47 168.3 1 0 0.0012 88% 0.000 1 106.77 798.22 3 8 12 17 INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn 0 INR Cr 0.000 3 0.001 USD mn 0 0 INRCr USD mn 0 INR Cr 0.000 5 0.029 200910 CAGR (200709) %
USD

IN R

Formulation

Herbal

Nigeria-Table-2
ToptencountriesexportingformulationstoNigeria(inUSDMn) Rank Exportingcountry 2007 2008 2009 %share Cumshare 1 India 95.03 71.71 89.77 31.50 31.50 2 China 33.68 25.70 34.12 11.97 43.48 3 Botswana 0.01 27.72 9.73 53.21 4 Albania 8.00 23.56 8.27 61.47 5 UnitedKingdom 14.49 3.87 13.72 4.81 66.29 6 Belgium 21.88 6.85 12.70 4.46 70.75 7 Barbados 1.47 11.58 4.06 74.81 8 UnitedArabEmirates 0.90 2.95 6.35 2.23 77.04 9 France 0.89 3.66 5.90 2.07 79.11 10 Switzerland 1.17 3.92 5.43 1.91 81.01 NigeriaImportsTotal 229.442 180.2485 284.9493 100.00 Source:UNCOMTRADE

YOY% 25.19 32.75 194.41 254.14 85.49 688.01 114.89 61.29 38.48 58.09

CAGR 3% 1% 3% 24% 165% 158% 116% 11%

Page | 39

India tops the list of exporters of formulations to Nigeria with a negative CAGR during20072009. China is second largest exporter of formulations. The market has grown by 58%, but Indian exports, probably due to controversies of counterfeiting being falsely reported on Indian exporters, is taking a back seat.

Nigeria-Table-3
ToptencountriesexportingbulkdrugstoNigeria(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare YOY% CAGR 1 China 3.147489 6.044902 6.918317 18.34 18.34 14.45 48% 2 India 6.04881 13.41372 6.588539 17.47 35.81 50.88 4% 3 SouthAfrica 4.579661 2.77717 3.970936 10.53 46.34 42.98 7% 4 UnitedKingdom 4.627784 1.522945 3.596882 9.54 55.88 136.18 12% 5 AntiguaandBarbuda 0.15439 3.311813 8.78 64.66 2045.10 6 Brazil 0.484073 0.795911 2.283296 6.05 70.71 186.88 117% 7 Germany 9.521544 5.113144 1.650077 4.38 75.09 67.73 58% 8 Belgium 6.503955 1.392673 1.326786 3.52 78.61 4.73 55% 9 Switzerland 0.006565 0.175205 1.143289 3.03 81.64 552.54 1220% 10 France 0.251205 0.72241 0.955157 2.53 84.17 32.22 95% NigeriaImportsTotal 42.07194 38.62361 37.71536 100.00 2.35 5% Source:UNCOMTRADE

Nigerian imports of bulk drugs are slowing down probably due to increase in domestic production. China which was enjoying only half of Indias share in 2007 and in 2008 has captured slightly more than Indias share and relegated India to the second position. In fact in 2009 India has grown negatively by 50 %.

Page | 40

Report on Malawi

Page | 41

MALWI: Following are the Demographic statistics of Malawi

Malawi is a COMESA member. SL. No 1 2 3 4 5 6 7 8 9 Region Country Capital Population Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%) Parameter SouthernAfrica Malawi Lilongwe 15,879,252(July2011est.) 2.763%(2011est.) $13.51billion(2010est.) 6.5%(2010est.) $900(2010est.) 1 US dollar = 151.65 Malawian Kwachas (MWK)(2010est.) 10 11 53%(2004est.) 014years:45.1% 1564years:52.2% 65yearsandover:2.7% Source: CIA World Fact Book updated to April 2011 Description

Page | 42

Fig:1 India's Pharmaceuticals Trade with Malawai(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug Formulation Herbal 0.8 20.4 0 3.14 81.49 0 INRCr USD mn 0.5 23.8 2.25 109.23 0 INRCr USD mn 0.2 17.9 1.01 85 0 43 2 INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn INR Cr USD mn INRCr USD mn INR Cr 200910 CAGR (200709) %
USD

IN R

Source CMIE/DGCIs /Pharmexcil research

Malawi-Table-1

There are no imports from Malawai.

Malawi-Table-2

ToptencountriesexportingBulkdrugstoMalwai(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare 1 SouthAfrica 0.35 0.70 1.18 93.66 93.66 2 Malaysia 0.02 1.27 94.93 3 India 0.09 0.05 0.02 1.25 96.18 4 China,HongKongSAR 0.02 1.21 97.38 5 USA 0.00 0.00 0.01 1.01 98.39 6 UnitedArabEmirates 0.01 0.73 99.12 7 Italy 0.00 0.27 99.39 8 Zambia 0.01 0.00 0.18 99.57 9 Germany 0.03 0.00 0.18 99.76 10 UnitedRep.ofTanzania 0.00 0.02 0.00 0.15 99.91 Malwi'stotalimports 0.65 0.91 1.26 100.00 199.91 SOURCE:UNCOMTRADE

YOY% 68.57 70.57 2043.84 67.02 91.93 88.98 38.98

CAGR 83% 59% 676% 125% 40%

Malawi is a very small market as far as bulk drugs are concerned and south Africa being in the same region and Group COMESA dominates this market. Page | 43

Malawi-Table-3
ToptencountriesexportingformulationstoMalwai(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare 1 France 8.62 7.41 43.64 38.53 38.53 2 Denmark 12.56 17.60 20.60 18.19 56.72 3 India 18.53 26.31 17.45 15.40 72.12 4 USA 16.53 13.02 9.06 8.00 80.12 5 SouthAfrica 4.85 5.11 5.89 5.20 85.32 6 Germany 2.10 1.03 5.18 4.57 89.89 7 China 1.14 1.02 1.77 1.56 91.45 8 Kenya 2.00 1.91 1.71 1.51 92.96 9 Belgium 6.44 3.88 1.31 1.16 94.12 10 UnitedKingdom 4.21 5.45 1.02 0.90 95.02 Malwi'stotalimports 85.28 94.65 113.28 100.00 SOURCE:UNCOMTRADE YOY% 488.85 17.10 33.70 30.42 15.26 400.74 72.87 10.81 66.22 81.31 19.67 CAGR 125% 28% 3% 26% 10% 57% 25% 8% 55% 51% 15%

India has dropped its share in formulation market of Malawi in the year 2009 which was more than 28% to 15.40 %. France and Denmark which have marched ahead in the year 2009 in this market.

Page | 44

Report on SENEGAL

Page | 45

SENEGAL Following are the demographic statistics of Senegal

SL. No 1 2 3 4 5 6 7 8 9 Region Country Capital Population

Parameter WesternAfrica Senegal Dakar

Description

12,643,799(July2011est.) 2.557%(2011est.) $23.86(2010est.) 3.9%(2010est.) $1,900(2010est.) 1$=495.28(XOF)CommunateFinanciere AfricaineFrancs(2010est.) 54%(2001est.) 014years:43.3% 1564years:53.9% 65yearsandover:2.9%(2011est.)

Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

10 11

Source: CIA World Fact Book updated to April 2011

Page | 46

India- Senegal bilateral trade statistics:

Fig:1 India's Pharmaceuticals Trade with Senegal(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 0.48 1.87 INRCr USD mn 0.98 4.55 INRCr USD mn 0.27 1.31 16 16 INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn 0 INR Cr 0.009 USD mn 0 0.013 INRCr USD mn 0.06 INR Cr 0.267 200910 CAGR (200709) %
USD

IN R 43 6

Formulation

8.32

33.64

8.27

38.00

4.05

19.19

30

24

0.01

0.021

0.0019

10 0

10 0

Herbal

Source CMIE/DGCIs /Pharmexcil research

Indias exports to Senegal has dropped considerably in 2009-10 almost by 50%. More information Senegals market is not available readily with the council.

Page | 47

Report on South Africa

Page | 48

SOUTH AFRICA Following are the demographic statistics of South Africa

SL. No 1 2 3 4 5 6 7 8 9 10 11 Region Country Capital Population

Parameter SouthernAfrica SouthAfrica Pretoria

Description

49,004,031(July2011est.) 0.38%(2011est.) $527.5billion(2010est.) 3%(2010est.) $10,700(2010est.) 1USdollar=7.38rand(Zar)(2010est.) 50%(2000est.) 014years:28.5% 1564years:65.8% 65yearsandover:5.7%

Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

Source: CIA World Fact Book updated to April 2011

South Africa has one of the highest rates of HIV and AIDS infections in the world, equivalent to just over 10% of the entire population. As a result, the market for antiretroviral (ARV) drugs looks set to grow, particularly as the government looks at ways to increase the supply of these drugs via the public system. The government has also proposed a National Health Insurance (NHI) scheme, which aims to provide healthcare for all South Africans. This is expected to become law in 2011, with the necessary institutional and organisational structures to start implementing NHI being in place by March 2012. The NHI will require compulsory contributions from all citizens, with the exception of the poor and unemployed. Page | 49

South African pharmaceutical prices are reviewed on a regular basis and most recently the Department of Health increased them by 13.2%, a move that was welcomed by the Pharmaceutical Industry Association of South Africa (PIASA), which said the increase helped combat increasing margin pressures experienced in 2008 due to mainly imported raw materials against a weakening local currency. The government, although wanting to back the local industry with protectionist measures, could be tempted to procure more drugs from countries like India and China, which can provide a higher volume of drugs for the same tender price compared to local companies.

The South African pharmaceutical market is set to grow at a constant rate over the coming years. According to industry estimates, generics have overtaken branded pharmaceuticals in terms of market volume and this trend is expected to continue, taking into account that the demand for cheaper essential drugs, including antiretroviral drugs, is set to grow. Local manufacturers, notably Aspen Pharmacare and Adcock Ingram, almost exclusively produce generics. Aspen completed the acquisition of the pharmaceutical division of an Australian company in January 2011. In September 2010, Ranbaxy opened a new manufacturing facility in Johannesburg. The company aims to become a more significant provider to the state.

South Africa is one of the highly regulated markets. India has more than 400 market authorizations from MCC South Africa. With its wide basket of ARVs and TB range, India with its second to none compliance of regulatory principles should have little difficulty being a front runner in this market.

Page | 50

South Africa-Table-1
Fig:1 India's Pharmaceuticals Trade with South Africaa(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug Formulation Herbal 47.3 122.3 0.21 198.49 498.55 0.88 INRCr USD mn 51.27 195 0.2 243.02 1006.4 00.99 INRCr USD mn 40.25 205.3 0.27 201.57 996.6 1.31 8 30 13 1 41 22 INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn 1.99 1.61 0.01 INR Cr 8.03 6.5 0.24 USD mn 1.7 25 0.01 7.81 115.2 0.26 INRCr USD mn 2.24 4.87 0.02 INR Cr 10.6 23.07 0.079 6 64 41 200910 CAGR (200709) %
USD

IN R 15 88 62

Source CMIE/DGCIs /Pharmexcil research

Our formulations exports have slightly grown negative in 2009-10. South Africa itself is a strong supplier if bulk drugs and also of Generic formulations.

South Africa Table-2

ToptencountriesexportingformulationstoSouthAfrica(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare YOY% 1 Germany 204.12 197.29 211.58 12.02 12.02 7.25 2 USA 152.38 176.30 183.08 10.40 22.42 3.85 3 France 158.47 174.32 177.85 10.10 32.52 2.02 4 India 84.01 158.99 172.32 9.79 42.30 8.38 5 UnitedKingdom 155.08 148.93 137.63 7.82 50.12 7.59 6 Switzerland 117.42 97.29 109.42 6.21 56.34 12.47 7 Ireland 87.82 89.01 94.51 5.37 61.70 6.17 8 Italy 88.79 95.64 90.56 5.14 66.85 5.31 9 Belgium 46.94 51.39 55.64 3.16 70.01 8.28 11.87 10 Australia 73.05 58.61 51.66 2.93 72.94 SouthAfrica'stotalimports 1615.11 1744.40 1760.67 100.00 0.93 SOURCE:UNCOMTRADE CAGR 2% 10% 6% 43% 6% 3% 4% 1% 9% 16% 4%

Page | 51

Indias report card looks brighter with UN comtrade statistics as fourth highest supplier of formulations and has a good year on year growth in spite of formulations imports of South Africa has remained flat during 2009.

South Africa Table-3

ToptencountriesexportingformulationstoSouthAfrica(inusdmn) Rank Exportingcountry 2007 2008 2009 %share Cumshare 1 China 20.66 31.55 33.26 28.62 28.62 2 Switzerland 9.62 12.62 18.64 16.03 44.65 3 Germany 8.16 11.07 12.60 10.84 55.49 4 UnitedKingdom 6.44 6.55 9.26 7.97 63.46 5 Nigeria 3.78 4.54 5.41 4.65 68.11 6 Australia 4.95 4.83 4.93 4.24 72.35 7 USA 4.51 6.75 4.72 4.06 76.41 8 India 3.82 6.32 4.20 3.61 80.02 9 France 2.24 3.41 4.16 3.58 83.60 10 Denmark 0.45 0.82 2.12 1.83 85.43 SouthAfrica 90.46 114.51 116.23 100.00 SOURCE:UNCOMTRADE YOY% 5.43 47.65 13.80 41.42 19.12 2.04 30.05 33.64 22.02 158.95 1.50 CAGR 27% 39% 24% 20% 20% 0% 2% 5% 36% 118% 13%

India though in the first ten suppliers of bulk drugs to South Africa, has lost the share both by percent and in actual value terms in the year 2009. Switzerland and china marched ahead.

Page | 52

Report on SWAZILAND

Page | 53

SWAZILAND Following is the demographic statistics of Swaziland. SL.No 1 2 3 4 5 6 7 Region Country Capital Population Populationgrowthrate(%) GDP(purchasingpowerparity) GDPrealgrowthrate(%) Parameter Africa SWAZILAND Mbabane 1,370,424(July2011est) 1.204% $6.055(2010est.) %2(2010est.) Description

8 9 10 11

GDPpercapita(PPP) Exchangerates Populationbelowpovertyline Agestructure(%)

$4,500(2010est.) 7.57Emalangeni/USDollar 69%(2006est.) 014years:37.8% 1564years:58.6% 65yearsandover:3.6%

Source:CIAWorldFactBookupdatedtojuly2010

Swaziland is a COMESA member.

Page | 54

Fig:1 India's Pharmaceuticals Trade with Swaziland(Figs are in US$ mn & INR Cr) Export Category 200708 200809 200910 USD mn Bulk Drug 2.15 2.63 0.01 8.7231 10.61 0.0406 INRCr USD mn 2.27 3.03 10.487 13.84 0 INRCr USD mn 2.45 9.39 11.589 3 Formulation 44.59 0 89 % Herbal 100 % Source CMIE/DGCIs /Pharmexcil research 100% 34% 0.04 0.15 0.23 1.06 0.04 0.19 7% 15% INRCr CAGR (2007 09) %
USD INR

Import 200708 200809 USD mn 0.04 INR Cr 0.15 USD mn 0.04 0.17 INRCr USD mn 0.08 INR Cr 0.3 41 % 0% 200910 CAGR (200709) %
USD

IN R 57 % 13 %

Swaziland-Table-1

Page | 55