Morocco – A study that didn’t please everybody

January 22, 2013 1:32 pm0 commentsViews: 38

The results of the study on Competitivity in the pharmaceutical industry conducted by the Moroccan Competition Council didn’t please local Pharmaceutical companies.

On the initiative of the Competition Council, the Consulting firm “Sis-Consultants” presented in July 2011 in Rabat, the results of a study on “Competitivity in the sector of the pharmaceutical industry.”

The goal was to conduct a study as a monography of the sector and understand the pharmaceutical landscape of Morocco. That said, the report has been a long debate at the end of its presentation. Sanofi-Aventis considered that the indicators were too “soft”. For its part, Novartis said that although they come from reliable sources, this information is based on rumors. The President of the Competition Council, Abdelali Benamour, concluded that the role of the institution he presides is to remove barriers to market access.

According to the study conducted by the firm, the pharmaceutical industry in Morocco is ranked second in Africa after South Africa and represents 0.13% of the global total. Morocco, consumption is increasing. That said, the firm has identified certain weaknesses in the Moroccan market characterized by a certain narrowness, the dispersion of production volumes and the criminalization of local manufacturing among others.

On the concentration index, are 20 operators which account for the “King’s share” with 95%. Level of market share, Sanofi-Aventis and Maphar hold 10.5 % and 9.3% respectively. In turn, generic drugs are subject to a system proposed in 2010 but is not yet operational. These products represent 90% of hospital tenders, 28% in the private market, when the total of generic drugs is 49%. These generic products are subject of fighting against Speciality product companies. In this regard, the firm “Sis-Consultants” has called for the creation or acquisition of new generic manufacturing plants and price support principles.

According to the research firm, some operators in the pharmaceutical sector are believed to be the cause of anti-competitive practices with a possibility of secret price fixing agreement between them. In addition, the pharmaceutical industry is segmented into three categories. Thus, common drugs are experiencing competitivity because they are used by all social classes. And medications for chronic diseases have known since 2000, a significant improvement thanks to generics. On the other side, serious illnesses (cancer, hepatitis, etc..) are not affected by competitivity because of fraudulent anticompetitive practices.

At the end of its report, the firm estimated that expanding health coverage is more necessary than ever keeping into account that the budget balances of the social security system must be guaranteed.

[by Salima Guisser -]

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