Chairman of Egyptian Pharmaceutical City Amr Mamdouh said that Egypt has all the necessary qualifications to pioneer in the pharmaceutical localization field and enhance local production, adding that the pharmaceutical industry is a key pillar to supporting national security.

Mamdouh pointed out that Egypt has the potential to become one of the leading countries in localizing industries, particularly pharmaceuticals and related industries.

The importance of localizing the pharmaceutical industry in Egypt became evident following the COVID-19 pandemic in 2019.

The event also highlighted the cooperation between the public and private sectors in enhancing equitable healthcare and the role of digital health and artificial intelligence in ensuring its development.

The conference was attended by Khaled Abdel Ghaffar, deputy prime minister and minister of health and population; Mohamed Awad Tag El-Din, presidential advisor for health affairs; Mohamed Fayez, chairman of Al-Ahram Foundation; journalist Magid Mounir, editor-in-chief of Al-Ahram; Mohamed Maait, former minister of finance and chairman of the Universal Health Insurance Authority; Baha Zidan, chairman of the Unified Procurement Authority; and Ahmed Al-Sobky, chairman of the Healthcare Authority.

At the beginning of the session, Mohamed Galal, vice president of Bayer Pharmaceuticals for the Middle East and Pakistan, announced that the company aims to expand in the Egyptian market and play an active role in localizing the pharmaceutical industry.

The goal is to manufacture 80 percent of the company's consumer health products locally by 2029, based on partnerships with major pharmaceutical companies in Egypt.

He explained that, in line with Egypt's vision to support the national pharmaceutical industry, Bayer Pharmaceuticals has taken serious steps over the past four years to convert some of its global products for full manufacturing in Egypt.

Egypt is one of the few countries to receive approval from Bayer’s parent company for manufacturing, thanks to its strong growth rates, skilled workforce, compliant factories with international standards, and outstanding logistics.

 Three products have already been manufactured and marketed, and the local production and marketing of Clarinase tablets is expected to begin by the last quarter of 2024, with other products being registered and manufactured by 2025.

These efforts saved $12 million annually from Bayer Consumer Health's import bill in Egypt, aligning with the state's direction to reduce foreign currency import bills.

Challenges facing localization
 

Galal pointed out that Egypt’s challenges in localizing the pharmaceutical industry are similar to those faced by most countries in the region, such as the lack of factories producing active and inactive pharmaceutical ingredients, which are key inputs for drug production.

Purchasing these inputs from abroad burdens the industry, requiring substantial foreign currency and long shipping times.

If Egypt enters active and inactive ingredient production, it could meet local market demands and export to neighbouring countries.

He highlighted that Egypt could boost its pharmaceutical exports and increase its global market share by investing in advanced pharmaceutical technology, applying global quality standards, obtaining international certifications, and collaborating with global inspection bodies to secure export approvals.

He also mentioned the importance of developing logistical infrastructure, including improving supply chains and distribution to ensure product quality, establishing international distribution centres in strategic locations, adhering to global environmental and health standards, and providing continuous government support through tax incentives, soft financing, and streamlining administrative and customs procedures to speed up the export process.

Key presidential initiatives
 

Galal highlighted several health initiatives under the patronage of President Abdel-Fattah El-Sisi that have significantly improved healthcare for citizens.

These include the initiative to reduce surgical waiting lists, which has resulted in performing two million surgeries, and the 100 Million Healthy Lives initiative aimed at eradicating hepatitis C and non-communicable diseases, providing screening for approximately 60 million citizens, and free treatment for about 2.2 million.

Other notable campaigns include Your Heart is Safe, which set up 401 clinics and trained over 5,000 healthcare providers. Bayer contributed EGP 20 million to support this campaign by providing over 200,000 aspirin packages to prevent heart disease.

Other initiatives include early detection of kidney disease, anaemia, obesity, and stunting in schoolchildren, maternal and fetal health programmes, hearing loss screening for children, early cancer detection, and women's health improvement programmes.

Galal noted that these efforts are part of the state's broader goal to ensure social justice and improve the Egyptian citizens’ living and economic conditions.

The healthcare services provided through the Hayah Kareema (Decent Life) initiative have been a lifeline for residents of remote and underserved areas.

Private sector's role
 

The private sector plays a pivotal role in advancing Egypt’s pharmaceutical industry, particularly multinational corporations, by introducing the latest products and modern drug manufacturing technologies.

Additionally, it helps develop local human resources by exposing them to the latest production techniques and quality control practices globally.

Egypt’s pharmaceutical sector presents attractive opportunities for investors, given the growing local demand for medicines, driven by population growth and improved health awareness.

Private companies can also capitalize on Egypt’s strategic location to export drugs to African and Arab markets, especially following the signing of trade agreements.

There is also an increasing focus on public health and preventive medicine, creating new opportunities for investment in pharmaceuticals.

Galal stressed that partnerships between the private sector and the government enhance the pharmaceutical industry by developing infrastructure, laboratories, and cooperation between universities and research centres.

These partnerships include accelerating drug approval processes, training programmes for human resources, and collaborating in disease prevention efforts.

National Plasma Derivatives Project
 

Ahmed Serag, chief strategy and projects officer at GEPD, stated that the project is one of several initiatives launched by the Egyptian government in recent years to enhance healthcare.

He added that countries with plasma derivative industries have a significant advantage, which Egypt, under presidential directives, is working to achieve through an agreement signed with a leading Spanish company in 2020. The aim is to transfer the necessary technology to Egypt to meet local market needs and begin exporting abroad.

Serag said: "We have ten centres currently accepting donors, with plans to increase to 20 centres. The first phase of the project is expected to begin by mid-2025."

He added that the project has obtained international accreditations to distribute plasma derivatives locally and is awaiting export approvals, underscoring the strength and determination of the Egyptian government in addressing its citizens’ needs across all sectors.

He stressed that the national plasma derivatives project is not a solitary effort but a harmony and cooperation between the state institutions and bodies.

Egypt’s potential in localizing pharmaceutical industry
 

Gamal El-Leithy, president of the Chamber of Pharmaceutical Industry, stated that the pharmaceutical sector is strong and resilient, and the shortage crisis is unusual for us, pointing out the Egyptian state's success in overcoming the COVID-19 crisis without any shortages and producing hepatitis C drugs.

El-Leithy pointed out that the reason for the previous drug shortage crisis was the lack of available foreign currency, which led to a decrease in the medicine stock in Egypt.

He noted that the crisis began to shrink, even nearing an end, after the factories returned to working at full capacity. The problem was solved by 90%, and within a few days, the crisis will be completely over.

He explained that the production of raw materials is a national security issue due to its utmost importance to the state, in addition to the complexity of the project's feasibility study.

 He noted that some Egyptian companies have already taken actual steps towards the production of raw materials, underscoring the priority for manufacturing medicines for cancer treatment and chronic diseases.

For his part, Mohamed Abdel Gawad, director of Orchidia Pharmaceutical Industries, said that the company began establishing its factory in 2003 and focused on specializing in eye medications, which is the key to its success.

He added that localizing the pharmaceutical industry requires the availability of raw materials alongside the production lines.

This should be a priority for the state, even if it starts with small-scale production lines. He stressed the need for funding for companies as an assisting factor in localization and also highlighted the need for spare parts for machines.

This can be achieved by relying on foreign companies with production lines in Egypt, which is a step the Ministry of Investment and Foreign Trade should take.

He pointed out the importance of relying on global markets, such as European and American markets, as export outlets. Therefore, localization must also be of a higher quality to increase exports.

Ahmed Khalaf, head of the pharmacy sector at Parkville Company, said: "We are keen on localizing the pharmaceutical industry in Egypt, and we are also keen on exporting products, especially since the Egyptian market is promising in this sector."

He pointed out that localizing the industry should be accompanied by quality and quantity, noting that exchange rate stability enhances the regularity of supply chains.

He emphasized that regular imports from a single source would improve drug quality and that continued production increases the availability of foreign currency, thus enabling the regular import of raw materials.

Ahmed Zoghoul, chairman of Art Pharma, said that dental anaesthetics are a vital issue, and the market was suffering from a severe shortage of this type until the local product, manufactured in Egypt by Art Pharma, was introduced.

He added that manufacturing dental anaesthetics in Egypt is extremely important, not only locally but also for export to the Arab region and the African continent. Moreover, serious negotiations have begun with Russia to obtain Egyptian anaesthetics, which are characterized by their safety, high quality, and effectiveness.

He pointed out that Egyptian national companies have recently been focusing on localizing the pharmaceutical industry in all its forms and have been striving to localize the production of raw materials and transfer this vital technology, which will be the cornerstone of the pharmaceutical industry and the economy in general.