In some good news for Egypt’s pharmaceutical producers, the total pharmaceutical sales across the country rose 4.9% year-on-year (y-o-y) to EGP 6.648bn during July 2020.
For the first seven months (7M) of 2020, total sales grew marginally by 0.04% y-o-y, amounting to EGP 43.8bn.
Naeem Research expects good news for Egyptian pharmaceutical producers RAMEDA and EIPICO, as the indications point towards a steady recovery in the third quarter (Q3) of 2020. This follows the 10%-15% drop in volumes of direct sales reported in Q2 of the current year.
Egypt’s pharmaceutical sales in Q2 of 2020 were down 3% y-o-y, amounting to EGP 18.152bn, affected by the pandemic and restrictions placed on movement. Overall, Egypt boasts a total of 155 pharmaceutical factories, in addition to 44 factories that are currently under construction, alongside 1,200 pharmaceutical trading companies.
For his part, Abo Bakr Imam, Head of Research at Sigma Securities Brokerage, believes that the Egyptian market is promising, considering the country’s large population. He noted that this represents a significant opportunity for foreign companies wishing to invest in the country’s pharmaceutical sector, especially given the gradually increasing population.
With the decline in infection rates due to the novel coronavirus (COVID-19), the Egyptian pharmaceuticals market has witnessed an abundance of HIV medicines at pharmacies. This is due to the 80% decrease in demand these drugs compared to previous months.
Pharmaceutical companies operating in the Egyptian market achieved sales worth EGP 37.1bn during the first half (H1) of 2020, reflecting a decrease of 0.8% compared to the same period in 2019.
A report issued by the International Pharmaceutical Federation (FIP) revealed that production companies affiliated with the Holding Company for Pharmaceuticals (HoldiPharma) acquired 3.24% of the sector’s total sales in Egypt in H1 of 2020.