CAIRO - The local pharmaceutical industry suffers many problems, such as the unjust domestic pricing of medicines, which adversely reflects on their export, especially given that some countries are accustomed to getting Egyptian medicine at the same price as in the local market. In addition, pharmaceutical manufacturers have to import 80 per cent of the raw materials and refrain from carrying out pharmaceutical research because of its high cost. Other obstacles they encounter are the Chinese and Indian medicines that are widespread in Egypt as well as counterfeit drugs. The manufacturers also suffer from some claims that Egyptian medicines are ineffective, although they are exposed to quality control tests and are compatible with world specifications. There are 180 pharmaceutical production plants in Egypt, including 110 that are considered as major economic entities with their investments exceeding LE20 billion ($3.36 billion). In addition, a further 70 new factories are under construction. Accordingly, the local market's self-sufficiency reaches 90 per cent while Egyptian annual pharmaceutical exports are aimed to rise in value from LE300 million to LE one billion annually. According to Magdi Hassan, head of the Pharmaceutical Industry Chamber, the singular pharmaceutical products produced here should place Egypt among the top countries of the world in terms of pioneers in the medical sector. Speaking to Al-Ahali weekly Arabic newspaper, he emphasised that Egyptian pharmaceutical products are well qualified to occupy this position, being of high quality and subjected to stringent control measures. Dr Hassan referred to the need to combat counterfeit medicines, to tighten the control on the local market and for pharmacies to avoid dealing in unsafe medicines. In general, the higher priced products are more likely to be counterfeited, as the fraudulent maker can make better profits, while cheap fake medicines have a low profit margin. Concerning the value of the Egyptian pharmaceutical exports annually, Dr Makram Mehanna, deputy chairman of the chamber, stated its annual average is LE 300 million, which he regards as too low. However, he pointed out that pharmaceutical manufacturers are exporting to some countries, which are accustomed to getting products at the same price as offered locally in Egypt. Factors governing the pricing of medicines include the Ministry of Health's contributory role. The ministry should co-operate with the chamber of medicine in the pricing process through committees, which would take into account the viewpoints of plant owners, while also taking into consideration the fact that the prices should be appropriate for the Egyptian market. Many medicine producers are abstaining from exporting their products due to importing countries being accustomed to getting Egyptian products at the same low prices enjoyed by Egyptian citizens. However, these importing countries ignore the fact that the Egyptian exporters have to meet the costs of marketing and exporting, making their profit margin low. So, a large number of medicine producers, do not export their products and leaders of the pharmaceutical industry, are looking for unconventional solutions to raise the volume of Egyptian medicine. Concerning the self-sufficiency of the pharmaceutical industry's local market, manufacturer Ahmed el-Arabi, noted that no country worldwide is self-sufficient on its local production, while Egypt depends for 90 per cent of its medical needs on local products.
