A worker operating a machine at a drug factory.
In a statement on Wednesday, Minister of Public Enterprises Sector Mahmoud Esmat said that the state-owned Drug Holding Company (Holdipharma) would provide 17 feddan and buildings for the project while Egyptian and Indian investors would contribute capital investment and technology.
The project aims to cover domestic need and produce a surplus for export, Essmat explained.
It comes as part of the state’s efforts to encourage partnerships with local and foreign pharmaceutical companies to improve quality of products and localise technology in two strategic sectors; antibiotics and treatments of chronic diseases, the minister added.
The government is also planning more partnerships with private investors in projects for the production of pharmaceutical preparations, biologicals and insulin pens, he revealed.
Meanwhile, Egypt has set goals to expand its drugs production in order to meet local demand and become a pharmaceutical hub in the region.
Egyptian sales of pharmaceutical reached EGP 170 billion in 2022.
Egyptian pharmaceuticals exports are expected to increase by five percent every year in the next three years, According to the Information and Decision Support Centre (IDSC).
India is the world's third largest producer of pharmaceuticals.
The Indian pharmaceutical industry is currently valued at $49 billion and is expected to reach $130 billion by 2030.
India is seeking pharmaceutical partnerships in markets like Egypt to produce raw materials and APIs at more competitive prices.
Indian pharmaceuticals could be looking to wean itself from relying heavily on importing 68 percent of key active pharmaceutical ingredients (API) from China due to higher costs of production there.