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The 1st Coordination Meeting for the Manufacturers of the Pharmaceutical Industry in the GCC States & Yemen Concludes its Sessions and Recommends:
Doha - Qatar
18 – 21 April 2011


Establishment of a GCC and Yemen Pharmaceutical Manufacturers and Medical Suppliers’ Union

The 1st Coordination Meeting for the Manufacturers of the Pharmaceutical Industry in the GCC States & Yemen held by Gulf Organization for Industrial Consulting (GOIC) on Monday morning, April 11th, 2011 at Doha Sheraton Hotel, under the auspice of the Supreme Health Council in the State of Qatar, called for establishment of a GCC and Yemen Pharmaceutical Manufacturers and Medical Suppliers’ Union. The recommendation intended to develop these industries, protect the interests of producers, cooperation and coordination between pharmaceutical manufacturers in the member states. It is also meant to develop proper mechanisms to strengthen communication and continuous coordination and consultation.

The meeting also recommended the unification of legislations on procedures relating to registration of pharmaceutical products and inspection, approvals, specifications and other issues among member states. It as well called for setting up a specific time plan by the governments of these countries for support of the existing pharmaceutical industries to enable them to fulfill their adherence to the updated specifications and measurements when necessary.

The meeting recommended invitation of the industrial development banks and funds in the GCC states and Yemen to set up easy financing programs in order to promote pharmaceutical industries provided that these programs shall be supported by the GCC member states.

Among the recommendations was also the call for focus on establishment of national pharmaceuticals industries that depend on the international pharmaceutical industries, which their protection validity was expired (generic) according to the principles of World Trade Organization (WTO), support and promotion of the setting up national industries for medical raw materials, particularly the abundantly available chemicals in the region, also to set up industries for filling and packing and medical supplies, setting up of a specialized regional center to conduct studies on bio-equivalence of drugs in coordination with pharmaceutical companies operating in the GCC and Yemen.

The meeting called the member states to exert efforts to establish joint pharmaceutical industries in collaboration with the private sector, to work for establishment of supplementary industries, which can make use of the outcomes of the existing industries; to disseminate awareness about concepts related to intellectual protection of the generic pharmaceutical industries, particularly those related to the concepts of sovereignty and to build up databases on patents on inventions provided so that they can be available to all.

The recommendations contained GOIC’s work on preparation of a multi- clients study on the field of pharmaceutical industries, which shall contain preparation of number of promising investment opportunities in this sector, while supporting and promoting the efforts of the pharmaceutical industries for this purpose in this region, establishment of a database on medical and pharmaceutical supplies manufacturing and the health care in the GCC member states and Yemen, in cooperation with the concerned governmental bodies in these countries as a contribution to development of the health sector in these countries.

The 1st Coordination Meeting for the Manufacturers of Pharmaceutical Industries in the GCC Sates and Yemen had started its meeting at nine O’clock, with large participation by the manufacturers of the medical supplies in the region and from all over the world, with the aim to found a platform for exchange of ideas and for dialogue between the pharmaceutical supplies manufacturing companies in the countries of the region and to converse the extent of the needs for conduct of specialized, technical studies on the future and means of development of this sector.

H.E. Mr. Abdul Aziz Hamad Al-Akeel, the Secretary General of GOIC addressed the opening session and expressed his hope that the meeting will be a stimulant and encouragement for cooperation and coordination between the manufacturers of medicines in the region and a motivation for growth, an advancement for pharmaceutical industry and an incentive to make further efforts to indigenize the vital industries in the region, to realize an increase in replacement of the products of the region in lieu of the imported one, in line with the strategic goals of the region, which stress on importance of economic diversification and focus on knowledge- based industries.

H.E. Mr. Akeel pointed out that despite the fact that the volume of the annual market of the pharmaceutical drugs in the GCC states and Yemen is currently estimated by US $6 billion, the industry is still witnessing a rapid development, due to the continued improvements in the health care in the countries of the region and due to the increase in the health awareness among the citizens. Hence, it is anticipated that the volume of this market will reach to US $ 10 billion by 2010, i.e. by rate of 6% of annual increase. Despite this large growth in the size of the market, the volume of the local manufacturing of pharmaceuticals doesn’t represent only a meager portion of the needs of the local market. The region still imports around 90% of its needs of the pharmaceuticals from abroad, despite the fact that there were 46 industrial plants in the GCC courtiers and Yemen, engaged in manufacturing pharmaceuticals and drugs during the year 2010. The total accumulated investments of the region during the same year was around US $ 830 million and absorbed over 8, 000 labours. The opportunity still exists for development of this industry and for its local expansion, so that in future it will be able to meet a substantial part of the requirements of the region with the possibility of exporting them to the neighbouring countries.

H.E. Mr. Akeel stressed that drugs have become a critical strategic important commodity. They industry effectively contributes in ensuring man’s health in addition to its huge economic importance. Therefore, GOIC sponsored this important coordination meeting, the first of its kind in this sector. GOIC made it a point to turn the event into a crucial industrial forum, whereat GOIC gathered an elite of pharmaceutical industrialists, decision makers and those concerned with the industry in the region, in order to address the current status and future of this vital industry and then to present an idea of establishing a Gulf Association of Pharmaceutical Manufacturers in the GCC states. Similarly GOIC is determined to prepare a multi-clients study for creation of investment opportunities in the sector of the pharmaceutical industry and the means of their promotion in the member states.

H.E. Dr Faleh Bin Mohamed Hussain Ali, Assistant Secretary General for Policies Affairs in the Supreme Health Council in the State of Qatar stated in his address that the state of Qatar has later launched a comprehensive health strategy for six years, starting with effect from this year. The strategy will cover 35 projects. The strategy comes in context of Qatar National Vision 2030 launched in October 2008 and as a part of the continued preparations that followed the launch of the vision, in order to prepare for the First National Development Strategy 2011-2016. All these constituted an incentive to march forward towards drawing up of the Health National Strategy 2011-2016, which is considered to be one of the 14 sectoral reformation strategies, that include the national development strategy and focuses on building up strong partnerships between the government and the private sector and the civil society. The strategy pays special care to the private sector in provision of health care.

H.E. Dr. Falah said that the launch of the National Health Strategy in Qatar proves the extent of adherence to adoption of a road map for realization of the seven objectives, drawn up by the Supreme Health Council, to meet the community health needs, because the health planning which “we aspire for is not confined to prevention from diseases and to planning to ensure the needs and to the development of financial and human infrastructure only, but it is a means to foster efforts to transform the health institutions into modern research based educational institutions that deal not only with pharmaceutics only, but that seeks its development and manufacturing”.

He added that care for the health of the Gulf citizens necessarily entails provision of the requirements of pharmaceutical supplies industry, particularly because the local manufacturing is not capable to meet the increased demand. Our country imports from abroad 95% of its pharmaceutical needs. He further stressed that this matter should be viewed from different marketing and environmental angles and from the perspective of the strategic objectives of the region, which we hope that this coordination meeting will address them all through conduct of research, investigation and clear-sighted vision.

The participants discussed four papers presented by Gulf Organization for Industrial Consulting (GOIC), the Intercontinental Marketing Services (IMS) Organization, Pittiglio, Robin, Todd & McGrath (BRTM) Company and by the Oman Pharmaceutical Products Company.

GOIC's paper which was presented by Mr. Ahmed Hassan Dhaif, the Assistant Secretary General, tackled the current trends and the future of the pharmaceutical industry in the GCC states and Yemen. The paper discussed and explored the status of pharmaceutical industries in the GCC states and Yemen in terms of investments; manpower; imports/ exports; the share of the local pharmaceutical industries; foreign tie ups and joint ventures in pharmaceutical industries.

The paper presented by IMS Organization which relied on its experience and wide expertise in the field of final market data resources, tackled the drug industry in the Middle East and North Africa (MEANA) and provided a detailed analysis of markets of the GCC states from the perspective of treatment, products, companies and market activity. It also addressed crucial causes, such as medical prescriptions vis-à-vis of the consumer products, multi-nationality vis-à-vis competitors at the regional and local level, specialized distributors, and vertically complementary companies.

The paper presented by BRTM company titled: "The Opportunities of the Manufacturers of the Pharmaceuticals in the GCC and the MEANA region” pointed to the increased international regional and local demand for generic drugs, as well it pointed to the high rate of imports, to the increase in the expenditures on health care in the GCC states and to the tremendous opportunities, which all these factors open up for the manufacturers of medicine all over the world and for the pharmaceutical companies in the GCC and MEANA region. There is a set of possible operational examples of the pharmaceutical companies and the distributors. The paper presented international regional and local facts and explored, alternative examples for establishment of such business.

The paper presented by the Oman Pharmaceutical Products Company reviewed facts and figures concerning the Omani chemical and pharmaceutical supplies, from the perspective of the manufactured products by the company in relation to production capacity, quality warranty and the exposure to market cooperation with the research and development centers. The paper stressed on development of the pharmaceutical supplies industry and on the increase in the supply and demand which lead to expansion of the company.

The meeting then addressed the reference frame for a multi-clients study for pharmaceutical supplies in the Gulf. The meeting conducted researches and studied the crucial causes pertaining to cost impact and the competition among multinational companies. It presented case studies conducted by IMS in this region, discussed the suitable mechanisms to ensure continuity of dialogue, promotion of cooperation between pharmaceuticals drugs producers in the region and the future investors and the development of this crucial industry in the region.

The meeting also reviewed the experience of the Jordanian Association of Manufacturers of the Pharmaceutical Drugs. It tackled the history, the development and the benefits the Association gained, in case of Jordan.