Value chain analysis for the pharmaceutical sector in Jordan

This report presents a review of current issues in the pharmaceutical sector in Jordan. It examines the government’s role (drug policy, regulations, pricing), the value chain (sourcing, R&D, production, packaging, storage, distribution), and the export process (which represents an estimated 70% of profit generation). Its recommendations are intended to serve as practical options for reform by articulating short- and low-cost medium-term strategies for managing pharmaceutical expenditure and increasing business opportunities in local and foreign markets. Jordan is considered a pioneer among countries in the Arab world in terms of the pharmaceutical industry; the country is recognized as a cost-efficient manufacturer of high-quality generic drugs, with the industry being worth an estimated USD 1.2 billion in 2018. Despite this positive positioning, the country’s industry has not managed to evolve into a manufacturing originator stage (developing original molecules for medicines) due to the limited allocation of resources for R&D by both private and public sectors. Moreover, the country faces a significant dependence on foreign active pharmaceutical ingredients (APIs) for the sourcing stage, and it is increasingly focusing on highly lucrative re-export activity, which trades pharmaceutical products from Western nations (Germany, USA, France, Switzerland) into neighboring Arab countries. Private and public stakeholders must recognize these market trends or threats and implement moderate reforms to secure competitiveness, profitability, and higher employment levels for the sector (currently estimated at 26,000 workers). Local manufacturers indicate that their operations could benefit greatly from the extended support of the Jordan Food and Drug Administration (JFDA) during the drug registration process. Sources state that their operations are greatly affected by slow registration periods for new drugs intended for both local and export markets.



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