Moroccan pharmaceutical industry grows increasingly competitive

2007-08-17

The pharmaceutical industry in Morocco has grown and improved in recent years. The World Health Organisation has even given it ratings on par with those in Europe. Nevertheless, industry leaders say Morocco needs to increase training and investment to become a truly global competitor.

By Sarah Touahri for Magharebia in Rabat – 17/08/2007

[Sarah Touahri] Most Moroccans purchase drugs to ward off infection, and aid the digestive system, metabolism and the central nervous system.

Morocco's pharmaceutical industry has expanded considerably over the past two decades. Workers are pleased with the progress but maintain there is much to be done to sustain its development. According to the Moroccan Pharmaceutical Industry Association (AMIP) the sector's performance and level of expertise are now recognised by the World Health Organisation, which ranks it on par with the industry in Europe.

There were just eight pharmaceutical plants in Morocco in 1965, and today there are 35, whose manufacturing meets international quality standards. These plants have a combined annual turnover of 5 billion dirhams and are valued at over 2 billion dirhams in total. Annual investment totals more than 300 million dirhams and the sector employs as many as 37,000 people. An average of 8-10% of production is exported to European, Arab, Asian and African countries.

AMIP Chairman Omar Tazi said the Moroccan pharmaceutical industry enables the country "to make essential treatments available and to ensure Morocco is self-sufficient in terms of medicines, making it a strategic industrial sector for the country." The arrival of compulsory medical insurance has also had an impact the industry, which reported a 10% increase in sales during the first quarter of 2007.

However, the industry has lost some of its domestic market share. Moroccan companies supplied 80-85% of market demand five years ago, and now satisfy just over 70% of national demand for drugs. The remaining 30% is covered by lower-cost imports, primarily from Europe.

Lost market share does not seem to worry experts. Tazi says it is acceptable to import more since demand has risen for sophisticated medicines not produced locally. Like consumers in other countries, Moroccans seek new therapies. This means they need new drugs, most of which are not produced locally since the cost of research and development is so high.

According to the AMIP, a study of therapeutic classes has revealed that the overwhelming majority comprise drugs to aid the digestive system and metabolism, drugs to ward off infection and drugs intended for use on the central nervous system. The latter accounts for half of the market.

Meanwhile, industry workers have expressed certain expectations. They hope authorities will provide support and investment to increase the sector's competitiveness on the world stage. Local manufacturers are obliged to improve their equipment and working conditions on an ongoing basis. Tazi said that while the pharmaceutical industry has had no major difficulties in adhering to European standards, the situation regarding US standards is more complicated and will require a significant increase in investment.

Dispensing chemists have called for some reform of the sector. Mohamed Lghaouti Laghdef, Chairman of the Regional Council of the Order of Northern Pharmacists, said the profession should be overhauled by placing much more focus on specialisation within the pharmaceutical field, as the most highly developed countries do. "In Morocco, 77.5% of pharmacists work in dispensaries. The rest work in biology (250 pharmacists) or industry (150 pharmacists). Only 2% of pharmacists work for the state", he said.