In a further piece of good news for Egypt’s generic pharmaceuticals producers, the Egyptian Drug Authority (EDA) has activated an incentive to ease exports of locally manufacture pharmaceutical products.
The temporary approval system for locally produced pharmaceuticals and medical supplies is set to enable pharmaceutical producers to export drugs without first registering them with the EDA.
Naeem Research sees that the new rule’s objective is to increase exports and incentivise pharmaceutical producers, whilst promoting new investments in the sector.
Naeem Research added that, with regards to individual companies under coverage, the development bodes well for the Egyptian International Pharmaceutical Industries Company (EIPICO), as exports of its products account for 18% of total sales.
Another local pharmaceutical manufacturer Rameda is also set to benefit from the new EDA incentive, as exports of its product account for 7% of total sales.
The incentive would help the companies increase exports, especially, in the three to four months following the indirect restrictions imposed by the Ministry of Health during the peak of the novel coronavirus (COVID-19) pandemic. This period has also been particularly tough as producers have been required to maintain an average of six months inventory.