Small and medium pharma companies in India can now confidently try to enter the Middle East pharma market following the easing of regulations like European Union (EU) market standing for allowing product registrations in the Middle East region.
According to informed sources, so far entry to Middle East markets was restricted only for companies selling drugs in Europe. Normally only large companies having significant investment and infrastructure in plant and machinery tap the regulated markets of EU. With the GCC nations evolving its own standards and other countries in the Middle East following suit, the region appears as a potential destination for SMEs if the manufacturers are able to maintain stringent quality standards.
Industry sources stated that the region is viewed as a high risk and low return destination. There is also a need for companies to be recognised by the local governments for drug supplies. When in times of anarchy and change of administration, pharma companies need to register themselves afresh. Other issues include stringent and time consuming regulatory approvals, dominant presence of multinational companies and solid local manufacturing base in some countries. All these had proved deterrents for medium sized companies to enter Middle East markets. Middle East countries are now predominantly depending on import of drugs to offer quality healthcare to its citizens.
According to Ravi Prasad, president and CEO, The Himalaya Drug Company, as long as the quality compliance is as per the international pharmacopoeia standards, there is no problem whatsoever. The rigorous processes and systems at Himalaya ensure that every product it manufactures meets with WHO (World Health Organisation) and FAO (Food and Agriculture Organisation) standards. The Himalaya Drug Company, the herbal healthcare major in India, is expected to make an entry into the Saudi Arabia in February 2006. Growth strategy for the company in Middle East includes relocation of its current offices to much larger premises in the Dubai Free Zone. Himalaya entered Egypt and Yemen in 2005. It also plans to foray into Jordan and Lebanon, as assessment on the viability of large scale manufacturing in the region is being done, informed Ravi Prasad.
Currently, the company exports to U.A.E, Oman, Kuwait, Egypt, Bahrain, Qatar and Yemen. The products include over twenty formulations to Middle East. The main product sold in Middle East is Cystone, which is for urinary tract infections associated with urinary stones. Cystone in fact has attained the market leader status in its therapeutic segment in most of the Gulf Cooperation Council (GCC) countries. Other important products are Liv 52, Septilin, Tentex Royal, Confido, Speman, Diabecon, Pilex and Bonnisan.