Drugs market maintains growth by five percent

BMI sees stable opportunities for multinationals

Expenditures on healthcare, pharmaceuticals, and medical devices grew by four percent in 2012, to a total $4.7 billion, according to a report issued by Business Monitor International (BMI).

According to BMI the local market “offers stable opportunities for multinationals to tap into the cultural prioritization for medicines and benefit from the increasingly-urbanized population.” Local preferences go to high-end brands, less expensive generics representing only a small portion of the market.

Expenditure on pharmaceuticals increased to $1.37 billion in 2012, up by five percent. Armand Pharès, head of the Syndicate of Importers of Pharmaceutical Drugs said: “Sales of medicines, net to market, including (distribution to) hospitals, pharmacies, and the Ministry of Public Health, reached some $850 million in 2012. He said the local medicinal drugs market witnesses about five percent growth each year. BMI’s estimate for spending on pharmaceuticals comprises the net-to-consumer sales of pharmaceutical drugs and ‘para-pharmaceutical’ products.

Pharès said growth in the sector is mainly driven by the introduction of innovative high-priced medicines to the market each year, as well as the population growth.

Expenditure on medical devices grew to $267 million, from $243 million in 2011. The figures of the sector are still weak, said Pierre Ayoub, General Manager of the Medical Division at Kettaneh Group: “The achieved growth is due to the increase in prices of medical devices by around four percent.” Demand on medical devices also grew with the arrival of new hospitals and medical centers. “Hospitals are now more oriented towards constantly updating their medical devices in light of the swift technological advancement,” said Ayoub.

Healthcare expenditure increased to $3.15 billion, up from $2.99 billion in 2011, as per BMI. Rola Zahar, General Manager at Mount Lebanon Hospital said that “increased awareness from patients and the vast technological development in medicine on the whole, have led to higher healthcare bills.” Healthcare tourism also contributed to higher spending on the sector.