The pharmaceutical market in the Middle East is dominated by the western multinationals. However, several new pharmaceutical projects are coming up in these countries and companies based there have commenced negotiations with several Indian companies for collaboration and technology transfer. It is expected that projects close to US$100 million will go on stream in the coming months in UAE alone.
This trend is despite the widespread notion amongst Indian companies that the Arab world is very much biased towards the west when it comes to sourcing pharmaceuticals. Traditionally, pharmaceutical firms cherished the notion that Arabs would never allow Indian manufacturing in their land even though they would not hesitate buying drugs from those companies which enjoy global reputation.
"Drugs and pharmaceuticals can fetch the price of gold in the Gulf. One strip of cephalosporin antibiotic cost around 300 rupees in Indian value terms in Dubai. Whereas the same is priced 12 to 18 rupees here," comments a mid-cap Indian drug manufacturer. But it is very difficult to penetrate this market as the regulations in these countries are very stringent, he complains.
"The pharma companies would like operate there should have world class facilities approved either by MCA of UK or TGA of Australia. Secondly, the company should be registered atleast in two GCC countries. And the most difficult proposition is that to get an Arab partner who will hold 51 per cent in the venture," he explains.
However, things are changing for the better, of late, believes a few of the Indian entreupreners who still dared to venture in to the lucrative Arab market. "Now there's a positive note in the overall scenario. The Arabs have started realizing that the Indian companies are placed amongst the best in the world of pharmaceu-tical manufacturing," says Mukund Mehta of Kilitch Drugs (India) Ltd. The Mumbai based Kilitch is one of the companies which made attempts to start joint venture manufacturing in countries like UAE and Yemen.
The situation that existed pre 2000 is no more now. The Arabs no more feel that the west is the only place to procure quality drugs. They are increasingly turning towards India also, according to Mehta. A few of the Indian companies which successfully forged technical collaboration with in the Middle East for pharmaceutical manufacturing are:
Globalpharma LLC, Dubai
UAE Globalpharma LLC is a 65:35 joint venture between Dubai Investments Ltd and the Mumbai based Kopran Ltd. The US $ 19 million facility was designed to manufacture finished dosage forms. Dubai Investment PJLC is a leading organization in the United Arab Emirates. The Parijat Enterprises, the promoters of Kopran, is also providing technology transfer to Globalpharma. Besides manufacturing and marketing Kopran's products, Global Pharma is supposed to be involved in contract manufacturing , export and in-licensing of products.
The Globalpharma site is built on a plot measuring approximately 27000 square metres in Dubai Investment Park, about 50 kms from Dubai City. The factory has two separate manufacturing units, for penicillin and non-penicillin products. The range of dosage forms manufactured at Globalpharma includes tablets, capsules,and dry syrups in the penicillin block and tablets, capsules, liquid oral syrups and suspensions in the non-penicillin block.
Neopharma, Abu Dhabi, UAE
In July 2003 Neopharma opened a state-of-the-art pharmaceutical facility in Abu Dhabi. The US $ 20 million manufacturing has been financed through a 60:40 debt-equity combination and the debt portion has been underwritten by the Bank of Baroda in India. Ranbaxy and Pfizer will provide knowledge, technology and training for the manufacturing process. In return, they will be able to use a portion of the manufacturing capacity. As per agreement, Ranbaxy will allow the manufacture of two cephalosporins at the custom-built module solely set aside for the manufacture of cephalosporins and other ß-lactam products. Ranbaxy will manufacture another five drugs at the new plant for worldwide distribution in the second phase.
The plant, which covers 17,000 sq.mt, has been designed and constructed on a modular concept, consisting of five separate buildings for antibiotics production, general production, research and development, formulation and QC/QA. Neopharma's manufacturing range includes anti-infectives, anti-inflammatory and arthritis, cardiovascular, anti-diabetic, gastrointestinal protectives, drugs for respiratory system and multivitamins.
In the first phase, Neopharma targets 180 million tablets, 45 million units of antibiotics, 30 million capsules and nine million liquid oral doses for 45 different medicines. The second phase of the Neopharma plant is expected allow production of over 300 varieties of drugs. The antibiotics unit will conform to all international standards set up by the FDA and European authorities.
Dr Reddy's Laboratories, another Indian company, has expressed a strong interest in a technical collaboration with Neopharma for some of their manufacturing processes.
Dr Reddy's has also plans to carry out some formulation and finishing at the Neopharma facility after the initial active pharmaceutical ingredient (API) production at their FDA approved plant in India.
Neopharma belongs to the US $ 1.5 billion New Medical Centre (NMC) Group - a core health care business conglomerate with operations in Middle East, India, UK and USA.
Modern Pharma, Sana'a, Yemen
Modern Pharma has been set up in Sana'a, Republic of Yemen with the technical collaboration with Kilitch Drugs, Mumbai. The facility is designed to manufacture tablets, capsules and liquid dosage forms. The state-of-the-art plant, which went onstream last year, has the capacity to manufacture 25 million tablets, 10 million capsules and 0.75 million units of liquids.
Kilitch Drugs was also involved in providing technical support to a UAE-based project Al Safwa Drugs FZE, which was putting up a US$ 15 million plant at the Jebel Ali Free Zone.