Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

The pharmaceutical industry in Egypt is one of the main pillars of the national economy, as this industry has witnessed remarkable developments in recent years. According to recent reports, the number of pharmaceutical factories in Egypt reached 170 factories in 2023 compared to 130 factories in 2015, an increase of 30.8%. The number of production lines also increased from 500 lines in 2015 to 700 lines in 2022, an increase of 40%.

The size of the pharmaceutical market also increased from 62 billion pounds in 2015 to 149 billion pounds in 2022. With regard to global ranking, Egypt’s ranking improved from 47th place in 2015 to 29th place in 2023, which reflects the scale of development in this vital industry. .

Despite these achievements, the Egyptian pharmaceutical industry faces major challenges, most notably intense competition from foreign companies that occupy a large share of the local market, in addition to weak infrastructure and a lack of investments in the areas of research and development. For example, investment in research and development in Egypt still represents a small percentage of 0.7% of GDP, which hinders innovation and progress in this vital sector.

However, the Egyptian government seeks to improve this situation through several national initiatives. Among these efforts are increasing investments in the pharmaceutical industry infrastructure, establishing new industrial complexes, and modernizing equipment and laboratories. In addition, there is an increasing focus on research and development, with the government providing incentives and financial support to research institutions to develop new medicines and improve the quality of existing medicines.

To enhance the efforts of policy makers, several development paths can be considered, including the following points. First, the government and local companies should strengthen partnerships with international universities and research centers to exchange knowledge and expertise, through researcher exchange programs and joint research projects. This cooperation can contribute to accelerating the pace of innovation and improving the quality of medicines.

Secondly, a study on adopting an “Industry 4.0” strategy in pharmaceutical manufacturing, which relies on artificial intelligence, the Internet of Things, and big data to improve production efficiency and reduce costs. Applying these technologies can make the pharmaceutical industry more flexible and responsive to changing market needs.

Third, studying the establishment of a specialized investment fund to support emerging companies in the field of biotechnology and pharmaceutical industries. This fund can provide the necessary financing to develop new ideas and turn them into successful commercial products.

Finally, it is necessary to establish a culture of entrepreneurship in the health sector through training programs and workshops targeting young people and professionals in this field. Promoting entrepreneurship can create an environment conducive to innovation and contribute to the emergence of new companies that lead the transformation of the pharmaceutical industry.

These recommendations may be out-of-the-box ideas, but they open new horizons and promising opportunities that could put Egypt at the forefront of countries in manufacturing and exporting medicines, and open new horizons for economic development.