Pharmaceutical Sector

Key Advantages
Opportunities

The Pharmaceutical industry is present since the 1960s with 18 successful local firms. There are 16 major investments employing 5,200 high caliber employees. The industry accounts for 20% of manufacturing GDP and has had 17.5% manufacturing growth in 2006. Industry output in 2007 reached $500 while exports grew by 17% since 2000 (forecast $450m 2010). Jordan is the 2nd largest export industry, exporting ~ 80% of production to 60 countries worldwide. Major export markets include Saudi Arabia, Algeria, Iraq. Whereas capital investments exceeded over $500m in 2007.

The industry caters to two main markets: Prescription and Over-the-Counter, OTC drugs. Specialties include antibiotics, anti-ulcer drugs, hormones, anti aids/cancer treatments, dosage equipment (patches, injectables).

Jordanian pharmaceutical firms own plants around the world, and are venturing into bio-technology. One firm has recently become the first in the region to be listed on the London Stock Exchange.

Key Advantages

Cost-competitive location for manufacturing and clinical trials 

• A low cost regional manufacturing/sales hub with access to a regional healthcare and pharmaceuticals market worth over $4.5 billion per annum for Saudi Arabia alone. 
• A centre of excellence for clinical trials: drug trials cost 50% less than in Europe or US at an average of US$20,000 to $30,000. 
• Salaries in the sector 50% lower than GCC and less than one quarter of Ireland & Singapore.

Large, skilled labour pool 

• 8,000 direct/indirect employees in the sector and a growing pool of >2,000 students in pharmaceutical and paramedical degree education, with Jordan emerging as a specialist location. 
• 11 Universities with Para-medical subjects, 6 clinical research centres and 101 hospitals 
• Pharma sector spends 4% of sales on R&D of 6 clinical research centers (EMEA & FDA). accredited), including the International Pharmaceutical Research Centre (IPRC).

Critical mass in the sector 

• Presence of 18 manufacturing companies, with rapid growth in exports, especially to GCC. 
• Opportunity for M&A licensing and joint venture opportunities with local established players.

Rapidly growing health services market 

• $2 billion healthcare sales, growing 7% pa. A high 10% of GDP is spent on healthcare. 
• Jordan is a medical hub for GCC with opportunities for medical services/devices investments.

Attractive IP protection 

• Among strongest intellectual property rights protection in the region . 
• Bolar provision allows Jordan pharmaceutical companies a first mover advantage on expiring patents if they are located in Jordan.

Access to raw materials 

• Further opportunities for expansion and leverage of the Dead Sea resources linked to spa. therapies, healthcare treatments and mass market cosmetics.

Supportive structures 

• Testing - Several testing and inspection parties (e.g. Food and Drug Administration, Ministry of Health, private laboratories). 
• Business services - Jordan Pharmaceuticals Manufacturers Association; Dead Sea Products Manufacturers Association; Private Hospitals Association.

Opportunities

• Research activities in natural products 
• Development of new drug delivery systems 
• Biotechnology R&D 
• Diagnostic kits for lab and consumer use 
• Production of generic & OTC products

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