Lured by the lucrative and vibrant market for drugs coupled with the higher purchasing power in the region, pharma and biotech companies from Karnataka are making a move towards the Middle East to garner a share of evolving pharma and biotech market in this region.
Middle East covers Bahrain, Cyprus, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen and Palestinian Territories.
The Indian export activities to Middle East is gaining ground primarily because Gulf Cooperation Council (GCC) is no longer demanding the EMEA certification as a crucial requirement for marketing in the region. This has prompted several Indian companies to look at Middle East as a favourable destination for exports. Apart, in the patent regime, there are several prospects for tie-ups or alliances with companies in the Middle East.
From Karnataka, pharma and biotech enterprises like Biocon, Micro Labs, Bal Pharma, Srushti Pharmaceuticals and the Himalaya Drug company are present in the region.
Biocon has chalked out plans to consolidate its presence in the Middle East with its range of products in cardiovascular, diabetes and cancer management. The company has started NeoBiocon, which focuses on diabetology, cardiovascular, nephrology and oncology products.
Biocon, which entered the region seven years ago, has already introduced its Insugen, a recombinant human insulin, which is been well accepted. Efforts are on to launch BioMAb EGFR, a monoclonal antibody for head and neck cancer, stated Rakesh Bamzai, president, marketing, Biocon Limited.
Biocon is significantly present in all the countries in Middle East, which is an important market for the company. This more than Rs 900 crore biotech major is expected to generate double digit growth from the region with its range of products, which includes both active pharmaceutical ingredients and formulated dosage forms.
Srushti Pharmaceuticals, which entered the Middle East four years ago, is looking to strengthen its presence in the region by entering new markets. Presently it is dealing with customers only at Syria, Dubai and Jordan.
Srushti markets indomethacin, a non-steroidal anti-inflammatory drug (NSAID) in the region. This drug is an extended release formulation in pellets form of 75mg, which is ready to be filled in capsules by pharma companies, and Srushti supplies it, stated Jatish N Seth, director, Srushti Pharmaceuticals and secretary of Karnataka Pharmaceuticals and Drugs Manufacturers Association (KDPMA).
The Himalaya Drug Company, which has an office at Dubai, has a significant presence in the region with its herbal products. The herbal market in the Middle East is valued at around $3 million.
"Since the Middle East has a rich indigenous tradition of using herbs as remedies for minor ailments, skin care and hair care, the receptiveness to using herbal medicine for health maintenance is quite high. Nonetheless, when it comes to herbal medicine, consumers do not rely on kitchen garden remedies bottled and sold at stores. They are discerning and look for products which are backed by scientific research. As such, mere herbal tag does not automatically build trust with consumers and there is a need to back these products with clinical data, research and studies proving their safety and efficacy. Quality therefore is a critical criterion in the Middle East market and for products registered as therapeutics, the conformity to standards prescribed by the pharmacopoeia is imperative. The current demographics in the Middle East market, with a large percentage of youth population, provide a good opportunity to herbal products manufacturers," said the company.
Market size
The total value of the Middle East market is estimated to be around $6.35 billion which is registering growth rates of 15-18 per cent. The largest markets include Iran ($ 1 billion), Iraq ($1 billion), Jordan ($900 million) Saudi Arabia ($700 million), Libya ($500 million) and Yemen ($220 million).
Key trends
The Middle East market has a growing demand for life style disorder drugs like diabetes and cardiovascular. There is also a major requirement for critical diseases like cancer and this is where BioMAb EGFR could meet the needs of patients.
The GCC region is predominantly a private tenders' market and the process of registration is similar to those in the regulated markets of US, Europe and Japan.
Prevailing issues
The major problems associated with marketing drugs are high cost of drug registrations and time consuming inspection processes. The region continues to show its inclination to pharma companies in the West for its supplies. But the reality is that pharma companies in US and Europe are looking at India for many drug imports.
Although lengthy registration process is a problem in the region, the wait is worth if quality parameters are recognized. It is also crucial for Indian pharma companies to build-up confidence in their customers from Middle East with regard to timely supplies.
Trading in the Middle East demands consistent quality of products and if Indian companies can meet this requirement, a major hurdle is crossed.