“Global, regional and local pharmaceutical firms operating in the Middle East, Turkey and Africa (META) region need to be able to ‘change the tires while driving’ if they are to benefit from doing business in a challenging, but also highly rewarding market”, says Dr Ashraf Allam, VP of Mundipharma in the META region.
Doing business in the META region is not always straight forward, but if approached with the right strategy, the right team, and a willingness to quickly adapt to any challenges, companies will be able to successfully access a market worth US$40 billion annually with 1.4 billion customers.
Compared to other emerging markets, META is still a profitable region with a large growing middle class of potential customers. If you are doing business here, you need to rise to new challenges every day. I always say that you must be able to change the tires on your car while you’re driving – you can’t stop the car because no one will give you time, not your shareholders, not your headquarters, not your customers, but it needs to be done and you have to be always ready.” he added.
“It’s a very complex region with more than 50 markets,” says Dr Allam. “There are markets in good shape, some are building very well, then there are markets which suffer from political instability, where you can find tanks in the streets”.
Key to navigating the myriad challenges facing businesses is hiring the right people: “Invest in talent, bring in people who know the market and are able to have quick impact. And hire a mix. For sure you need staff with experience, sure, but mix it up with younger team members who have the hunger – energy is just as important as wisdom in a successful company.
“The business in this region requires you to build strong business relationships and partnerships with the key stakeholders. This is where companies need to be able to adapt and be flexible. The most successful players in this market know how to adapt. They have locally adapted pricing and a customized strategy for each segment of the market.”
Among the positive trends currently shaping the business landscape across the META region are improved timelines for regulatory approval and increased awareness and enforcement of rules related to intellectual property, especially in the GCC. However, continued pressure on budgets has led to the introduction of wide-ranging cost containment measures in both the public and private sector limiting the government spending on healthcare.
“Companies are now seeing their profits come under increased pressure,” says Dr Allam. “In this economic environment profit margins and price competition is intense and it is proving difficult to pass on the rise in the otherwise regulated selling prices.
To drive success at a regional level, businesses must have a portfolio tailored to the market, build lasting relationships with ministries of health and regulators, and pay special attention to employing talent and building capacity, says Dr Allam. ”
A good distribution network in the region is extremely important, says Dr Allam. While it can be hard sometimes to negotiate the right agreement with a financially sound distributor, it can result in increased, consistent and reliable countrywide coverage.
“Also, invest in awareness campaigns, educational activities from which physicians can learn more about brands that can help their patients, as well as developing partnerships with retail customers and hospitals to ensure they carry your products,” adds Dr Allam.
