As the Arab Health congress focusing on medical technology and education takes off in the Arabian Gulf in January end this year, Indian pharma companies are committed to increase their presence in the Gulf Cooperation Council (GCC) region with a range of active pharmaceutical ingredients (APIs) and formulations. Indian pharma companies large, medium and small indicate that their aggressive forays in the region should be a worthwhile investment in terms of time and cost.
Shiva P Hiremath, director, Sante Mernaud who had over a decade of working experience in the pharmaceutical sector in the Gulf told Pharmabiz during an interaction over phone that "Indian companies are among the top ten MNCs here. High quality standards and cost competitive pricing can allow Indian drug manufacturers to keep the growth tempo.''
Although there is a major demand for drugs manufactured by the US and UK companies in the GCC, yet Indian companies like Ranbaxy have managed to make rapid strides and emerge as the largest generic major in the region even after Swiss companies, pointed out Hiremath.
Other Indian companies which have a presence here are Dr. Reddy's, Cipla, Lupin, Biocon, Bal Pharma, Aurbindo along with score of small players who are keen to increase their presence in the region.
The Gulf Cooperation Council (GCC) constitutes Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and the Sultanate of Oman. The region has a sizeable market for pharmaceuticals estimated to be a little over than $2 billion. Eighty percent of the drugs are imported and 20 percent are manufactured locally.
The leading pharma manufacturers are Global, Pharmacare, Ras al-Khaimah-based Gulf Pharmaceutical Company (Julphar) and the Jebel Ali-based Gulf Inject Company and Neo Pharma along with a handful of small companies who are engaged in repackaging or maintaining miniscule manufacturing operations.
The population in GCC is 35 million and in UAE is 4 million. There are two patient categories. One is the educated well-off population with medical insurance benefits and demand expensive multinational drugs. Second are the 'not-so-well-off 'people with no medical insurance and insist on quality but affordable drugs. "It is this category that Indian pharma companies can cater to and become successful," stated Hiremath.
Highest demand in the region is for diabetic formulations because one out of three in the population is a diabetic. High life styles and lack of exercises are the primary causes leading to this disorder. Related to the life style disorders are conditions like cardiovascular and high cholesterol which could eventually lead to nephro-urology and neurology diseases. Stress related disorders lead to cancer and psychiatry illnesses. Therefore bulk actives and formulation manufacturers in the area of nephro, cardio, ortho, psychiatry, cancer could make substantial gains in the region, stated Dr. SC Nagendra Swamy, Group Director, Medical Services & Post Graduate Studies, Manipal Health Systems.
There is also demand for herbal and ayurveda drug makers to be present in the region. Guaging the potential of ayurveda personal care products, The Himalaya Drug Company opened up operations in Dubai., stated Ravi Prasad, President and CEO of the company. Already The Himalaya Drug and Dabur have made an impact with their products and Bal Vedics of Bal Pharma is expected to enter shortly.
In UAE alone, market for diabetic medicines is growing between 22 and 25 percent and between 11 and 15 percent for cardiovascular drugs informed Rakesh Bamzai, president, marketing, Biocon Limited, which entered the region eight years ago with APIs. It has also inked a pact with a company in the Middle East to market its recombinant human insulin 'Insugen' which will be in the market within four months. In addition, it is also working on the requirements of product registration for 'BioMAb EGFR'- a monoclonal antibody for head and neck cancer.
Regulatory requirements
For an entry into the stringent markets of GCC, the regional regulators mandate that Indian pharma formulation companies must have at least three of its drugs listed in the European Union's approved list of 22 drugs. "It is a not-so-easy situation to trade with such a requirement opined, Shailesh Siroya, managing director, Bal Pharma. The company already has been exporting Gliclazide, an anti-diabetic bulk active for a few years. Now its formulations Ocium (calcium carbonate), Balvidine Ointment ( Povidone Iodine) and Balvidine Lotion registered there and its ayurveda drug 'Ashwamed is expected to make its maiden entry.