PDF - PharmaBoardroom

Transcription

PDF - PharmaBoardroom
A SOLID
BASE FOR
THE REGION
PAGE 12
THE PAST & FUTURE
OF THE DOMESTIC
INDUSTRY
PAGE 14
DOLIPRANE:
A MOROCCAN
EXCEPTION
PAGE 29
SANOFI: ATTACKING
THE CAUSES OF DIABETES
& MENTAL HEALTH
PAGE 30
COVER STORY
UNCLOUDED
AMBITION
Morocco’s High Hopes For Its
Pharma Sector
page 18
MOROCCO
JULY 2015
Zenith pharma,
Zenith pharma,
The Dragon of the Moroccan
The Dragon of the Moroccan
Pharmaceutical Market
Pharmaceutical Market
ZenithPharma is an assertive,
ZenithPharma
an assertive,
committed andisinnovative
committedfirm
andthat
innovative
Moroccan
has built a
Moroccan firm
that has
built a
reputation
for itself
at home
reputation
for itself
home
through
dynamic
andatremarkable
through Today,
dynamic
and remarkable
growth.
ZenithPharma
is
growth.inToday,
ZenithPharma
is
ranked
Morocco’s
top fifteen
ranked in Morocco’s
top fifteen
pharmaceutical
companies,
after
pharmaceutical
companies,
after
just
eight years in
the market.
just eight years in the market.
Key to this success has been the young and ambitious management team that has been keen
to embrace
new management
techniques,
and above
all, hard
work.keen
Key
to this success
has been the
young andinnovative
ambitiousstrategies,
management
team that
has been
to embrace new management techniques, innovative strategies, and above all, hard work.
Through a combination of high quality service and a strategy of decentralization ZenithPharma
has managed
to stand out
fromquality
the crowd
– the
company
is based
in the south ofZenithPharma
Morocco and
Through
a combination
of high
service
and
a strategy
of decentralization
therefore
has
benefitted
from
better
access
to
its
customers
and
great
logistics
infrastructure.
has managed to stand out from the crowd – the company is based in the south of Morocco and
therefore has benefitted from better access to its customers and great logistics infrastructure.
The philosophy of ZenithPharma is based on audacious assets and open-mindedness: serving
the others
by providing
them comfort
and wellbeing.
The
philosophy
of ZenithPharma
is based
on audacious assets and open-mindedness: serving
the others by providing them comfort and wellbeing.
ZenithPharma laboratories strives every day to embrace knowledge and expertise to answer
every
need of laboratories
Moroccan healthcare
professionals
and knowledge
patients byand
providing
high
ZenithPharma
strives every
day to embrace
expertise
to quality,
answer
efficient
and
safe
health
products.
every need of Moroccan healthcare professionals and patients by providing high quality,
efficient and safe health products.
Résidence les Alizés, la colline 2 n°33 Sidi Maarouf - Casablanca - Maroc
: +212la5 colline
22 97 77
30 / Sidi
Fax Maarouf
: +212 5 -22
97 29 14 - Maroc
Résidence Tél
les Alizés,
2 n°33
Casablanca
SIEGE SOCIAL:
96,
Zone
Industrielle
Tassila
Inzegane
Agadir
Tél : +212 5 22 97 77 30 / Fax : +212 5 22 97- 29
14 - Maroc
Tél
:
+212
5
28
83
83
74
/Fax
:
+212
5
28
83
79
25
SIEGE SOCIAL: 96, Zone Industrielle Tassila Inzegane - Agadir - Maroc
Tél
+212
5 28
79 a25
w:w
w .5 28
z e83n83i 74
t h/Fax
p h: +212
a r m
a 83
. m
w w w. z e n i t h p h a r m a . m a
www.pharmaboardroom.com
Healthcare & Life Sciences Review: Morocco
2
HEALTHCARE & LIFE SCIENCES
REVIEW MOROCCO
A Solid Base
For The Region
Feature 12
CONTENTS
—July 2015
5
Acknowledgements
6
PREFACE Morocco
8-10 MOROCCO IN FIGURES Industrial Overview / Top Players /
Top Drugs
12 REGIONAL HQs FEATURE Multinationals Speak
Unclouded
Ambition
Cover story 18
14 THE PAST & FUTURE OF THE DOMESTIC
INDUSTRY INTERVIEW Abdelilah Lahlou, Iberma
16 MANAGING THE PRICE CUTS INTERVIEW Mehdi
Zaghloul, Novartis Morocco
18 MOROCCO COVER STORY Unclouded Ambition
Doliprane:
A Moroccan
Exception
Feature 29
20 Shifting Sands: Market Restructuring
21 Getting The Generics Equation Right
22 Why Invest In Morocco?
23 The Gateway To Africa
26
PARTNERSHIPS AND EXPORTS FEATURE Lamia Berrada
& Samir Bachouchi, Bottu
29 DOLIPRANE IN MOROCCO FEATURE Bottu And
Doliprane
30 CSR SPOTLIGHT FEATURE Sanofi, Diabetes And Mental
Health
32 RISING STAR INTERVIEW Mohamed El Bouhmadi,
ZenithPharma
34 THE INNOVATION GAP INTERVIEW Radia Chmanti
Houari, GSK Morocco
36 MOROCCAN M&A INTERVIEW Brahim Oulammou,
Promopharm
This edition of Healhcare & Life Sciences Review was produced
by Focus Reports.
Publisher & Project Director: Julie Avena
Written by: Karim Meggaro Contributors: Carla Verdera
Mateu, Zachary Burnside
For exclusive interviews and more info, please log onto
www.pharmaboardroom.com or write to [email protected].
38 ONCOLOGY IN ACTION FEATURE Projects To Improve
Treatment Levels
40 EXPORT OPPORTUNITIES INTERVIEW Driss Chaoui,
Afric-Phar
42 PRODUCTION HUB INTERVIEW Myriam Lahlou Filali,
Pharma 5 Group
Copyright: All rights reserved. No part of this publication maybe reproduced in any form or by any means, whether electronic, mechanical or
otherwise including photocopying, recording or any information storage or retrieval system without prior written consent of Focus Reports.
While every attempt is made to ensure the accuracy of the information
contained in this report, neither Focus Reports nor the authors accept
any liabilities forerrors and omissions. Opinions expressed in this
report are not necessarily those of the authors.
www.pharmaboardroom.com
Healthcare & Life Sciences Review: Morocco
3
Acknowledgements
PharmaBoardroom would like to thank:
The Moroccan Ministry of Health
Abdelmajid Belaiche, Director General, AMIP
Hubert de Ruty, President, MIS
Mohamed Houbachi, President, AMMG
Abderrahim Derraji, Founder, Pharmacie.ma
and the industry leaders that we have met for taking the time
to share with us their thoughts, their stories and their ambitions.
A warm thank you for the support, assistance and enthusiasm
we have received from the Moroccan pharmaceutical community.
PREFACE
Morocco
Preface
Morocco is too often overlooked as a pharmaceutical nation.
However, thanks to decades of experience, the domestic pharmaceutical industry is strong, with a well-developed base of
local producers that today manufacture products to high
international standards. The quality of local producers in
Morocco today is somewhat unknown to the outside world,
something we hope to address with this report. Thanks to Morocco’s regional competitiveness, many
multinationals have chosen to establish their regional
headquarters in the country, a nod to its political stability, liberal economy and educated workforce. Indeed, in its
2015 Africa Competitiveness Report, the World Economic
Forum identified Morocco as the most competitive country
in North Africa. One place where the quality of Moroccan pharma is
well known is in sub-Saharan Africa. Indeed, Moroccan
6
Healthcare & Life Sciences Review: Morocco
pharma companies have been making inroads as exporters for years now, benefitting from the vision of King
Mohammed VI to open Morocco to the south. As well as
looking to continue this expansion southwards, many
Moroccan companies are now looking at the possibilities beyond Africa – to the north, Europe, and to the west,
the US. Quietly, sedately then, Morocco’s pharmaceutical sector is shining. Domestically, with the introduction of
new healthcare coverage through the RAMED program,
increasing numbers of Morocco’s populace are getting
access to medicine; aside from this, manufacturers are
improving standards, MNCs are finding new ways to bring
innovation to the country, and trade continues to flourish. Morocco’s ambitions in healthcare are clear, and the
skies overhead are unclouded.
ANGOLA
www.pharmaboardroom.com
MOROCCO IN FIGURES
Industrial Overview
EVOLUTION OF MOROCCO’S GDP GROWTH
THANKS TO THE DEVELOPMENT OF NEW INDUSTRIAL SECTORS OTHER THAN AGRICULTURE,
MOROCCO´S GDP HAS BECOME MORE PREDICTABLE EACH YEAR
15%
13%
11%
9%
7%
5%
3%
1%
0
-1%
-3%
-5%
20
13
20
12
20
11
20
10
9
0
20
20
0
8
07
6
0
20
5
20
4
0
20
0
0
3
20
LOCAL PRODUCTION COVERS
69.4 33
nd
COUNTRY/REGION: NORTH AFRICA
%
COMPETITIVENESS
2014 - 2015
MOROCCO EXPORTS
AN INCREASE OF
21.7
%
%
OF ITS PRODUCTION
IN TURNOVER 2012-13
SUBINDEXES
7-8
THE MOROCCAN MARKET
MARKET SIZE: USD
USD
1.51 0.89 4
BILLION TOTAL
Rank
Value
NORTH
AFRICAN
AVERAGE
MOROCCO ALGERIA
TUNISIA
EGYPT
LIBYA
72
79
87
119
126
4.21
4.08
3.96
3.60
3.48
57
65
85
121
111
4.74
4.64
4.38
3.73
3.86
78
125
94
106
137
3.92
3.34
3.74
3.58
3.03
82
133
93
113
143
350
2.91
3.40
3.18
2.49
INDUSTRIAL UNITS
BILLION PRIVATE MARKET
%
EXPECTED CAGR 2013-18
Source: IMS Health, AMIP
Healthcare & Life Sciences Review: Morocco
BASIC
REQUIREMENTS
OF DOMESTIC DEMAND
EFFICIENCY
ENHANCERS
LARGEST PHARMA SECTOR
IN AFRICA BY SIZE (AFTER
SOUTH AFRICA)
8
20
THE GOBAL COMPETITIVENESS
INDEX 2014—2015
INNOVATION &
SOPHISTICATION
FACTORS
2
0
2
0
1
0
MOROCCO BY THE NUMBERS
20
20
0
99
19
20
98
97
19
19
19
96
95
19
94
19
93
19
19
92
91
19
19
90
-7%
3.87
4.27
3.52
3.09
Source: World Economic Forum
www.pharmaboardroom.com
MOROCCO IN FIGURES
Top Players
EVOLUTION OF THE PRIVATE PHARMA
MARKET IN VALUE
TOP 10 LABORATORIES
IN VALUES IN 2013
UNITS: Billion USD
1
2
SANOFI-AVENTIS
0.89
0.88
0.87
4
MAPHAR
6
0.83
BOTTU
0.80
8
GALENICA
2010
2011
2012
Source: AMIP
2013
2014
Exchange rate: USD 1 = MAD 10
GENERIC AND ORIGINATORS IN UNITS
AND VALUES IN 2013
UNITS IN 2013
(IN THOUSANDS
OF UNITS)
EVOLUTION
2012—2013
% IN UNITS
VALUE IN 2013
(IN USD
MILLION)
EVOLUTION
2012—2013
% IN VALUE
MOROCCO
GENERICS
ORIGINATORS
307,426.6
97,856.9
209,569.7
1.5
4.1
0.4
10
31.8
298,771
598,857
2.6
6.7
0.7
100.0
33.3
66.7
Source: IMS Health
www.pharmaboardroom.com
Exchange rate: USD 1 = MAD 10
5
LAPROPHAN
7
GSK
9
NOVARTIS
Source: IMS Health
TOP 10 LABORATORIES
IN UNITS PRODUCED IN 2013
1
2
COOPER MAROC
4
68.2
897,629
3
COOPER MAROC
PFIZER MAROC
SOTHEMA
100.0
SOTHEMA
6
GALENICA
8
PHARMA 5
10
BOTTU
3
MAPHAR
5
LAPROPHAN
7
SANOFI-AVENTIS
9
BAYER MAROC
GSK
Source: IMS Health
Healthcare & Life Sciences Review: Morocco
9
MOROCCO IN FIGURES
Top Drugs
TOP 10 THERAPEUTIC CLASSES IN UNITS (2013)
Therapeutic classes
in values
Market share
in % of value
Source: IMS Health
18.3%
15.4%
11.9%
APP DIGESTIVE METABOLISM
11.0%
GENERAL ANTIINFECTIVES
NERVOUS SYSTEM
8.0%
APP CARDIOVASCULAR
7.6%
BREATHING APPARATUS
12.0%
7.1%
MUSCULOSKELETAL SYSTEM
APP GENIT- URIN.HORM.SEX
4.5%
DERMATOLOGY
4.0%
SENSE ORGANS
OTHERS
TOP 10 MEDICINES IN MOROCCO
BY VOLUME, 2014
TOP 10 MEDICINES IN MOROCCO
BY SALES, 2014
1
DOLIPRANE ®
1
DOLIPRANE ®
2
AUREOMYCINE ®
2
AUGMENTIN ®
3
3
4
MICRODIOL ®
MINIDRIL ®
4
OEDES ®
MICRODIOL ®
5
ASPRO ®
5
AMOXIL ®
6
COQUELUSÉDAL ®
6
ERECTOR ®
7
RINOMICINE ®
7
CLAVULIN ®
8
ADEPAL ®
8
VENTOLINE ®
9
PERNABOL ®
9
SURGAM ®
10
AMOXIL ®
10
ACLAV ®
Source: IMS Health
10
Healthcare & Life Sciences Review: Morocco
Source: IMS Health
www.pharmaboardroom.com
PREFACE
Morocco
www.pharmaboardroom.com
Healthcare & Life Sciences Review: Morocco
11
REGIONAL HQs
Multinationals Speak
A SOLID BASE
FOR THE REGION
Preface: Why choose Morocco over other countries in
the region to base regional HQs? The regional managers
of Roche, Bayer and GSK explain.
RALF HALBACH
GENERAL MANAGER, ROCHE
MOROCCO AND HEAD
OF MANAGEMENT CENTER
NORTHWEST AFRICA
“Regarding where the headquarters are located for
this region, there are many factors that drive this decision. It is true that Algeria is the biggest market in the
region, has been growing at record rates and still has a
lot of potential. But when choosing the best location
of the regional hub, you need to take a holistic view.
A number of factors play a critical role, including for
example, the ease of doing business, ability to getting
work permits, overall safety, and access to talent.
“Right now, Morocco is the hub for our Roche
Management Center Northwest Africa. I think that
Morocco certainly has the potential to become a regional hub for other companies and sectors as well; however, it needs to take action to change certain aspects.
There are currently negotiations happening with the
European Union regarding trade, which could be very
beneficial for Morocco on many levels. It would be a
great opportunity to get Morocco to the next step in
its development. With the stability that Morocco offers,
and the fact that many companies are already represented here, plus its connection with Europe and Africa,
Morocco is a privileged potential hub. But Morocco
must take a more long-term view and not a short-term,
protectionist view.”
12
Healthcare & Life Sciences Review: Morocco
RADIA CHMANTI HOUARI
AREA DIRECTOR NORTH AFRICA
AND PRESIDENT GENERAL
MANAGER, GSK MOROCCO
“Today, I am leading GSK North Africa, based in
Morocco, supporting three countries: Morocco, Tunisia
and Libya. We are ranked second in pharmaceutical market in both Morocco and Tunisia and GSK is leading the
industry in many therapeutic areas: vaccines, anti-infective and respiratory. More than 100 people are working
at GSK Morocco today.”
“I believe the main reason why GSK´s North Africa hub
is in Morocco and not elsewhere, is the high level of skills
and expertise we have in the country. Sir Andrew Witty,
GSK’s CEO, visited Morocco last year in September: he
commented that he was impressed by the quality of the
people here in Morocco. This is a great testimonial! In my
leadership team I have diversified profiles who have come
over from Canada, US, Switzerland and France, a high
caliber of talented people. We made tremendous progress
www.pharmaboardroom.com
REGIONAL HQs
Multinationals Speak
JACQUES HENRI CHARPENTIER
DIRECTOR GENERAL OF BAYER
HEALTHCARE MAGHREB
Sir Andrew Witty, CEO of GSK visits the company’s regional office in Casablanca in 2014.
“Bayer has been present in Morocco for more than 50 years,
through our pharmaceutical practice but also our two other divisions, namely MaterialScience and CropScience.
Morocco acts as the Maghreb hub for Bayer’s activities.
It had even been a hub for a part of French-speaking Africa
up to this year when the group decided to reorganize its
regional practice and now Morocco continues as the hub
for the Maghreb region: Tunisia, Algeria, and Morocco.”
Morocco certainly has the
potential to become a regional
hub for other companies
and sectors as well; however,
it needs to take action to
change certain aspects
Ralf Halbach
in feeding our succession pipeline and filling some local
leadership roles internally, and we also did well in exporting talents last couple of years, either to regional roles or to
other locations.”
“One of my key objectives is to upgrade our people
capabilities and expose their competencies to the region.
At an HQ level, what I am trying to do is to increase my
team’s exposure in regional events, projects and meetings.
During last CEO visit in Morocco, I insisted on organizing a business review meeting so he could see the quality
of the people we have here. Moreover in best practices,
we are trying to develop many local projects and have them
presented across the region.”
www.pharmaboardroom.com
Healthcare & Life Sciences Review: Morocco
13
THE PAST & FUTURE
OF THE DOMESTIC INDUSTRY
Abdelilah Lahlou, Iberma
THE DOMESTIC
INDUSTRY:
PAST & FUTURE
ABDELILAH
LAHLOU
General manager
of Iberma
ABDELILAH LAHLOU, discusses the history of
the Moroccan pharmaceutical industry, as well
as the challenges and opportunities ahead
HCLS: You have a long experience of the Moroccan
pharmaceutical industry. What have been the most significant changes throughout its history?
AL: Morocco initiated its pharmaceutical industry after
independence, having opted for the liberal option from the
very start for drug development and distribution. Facilities
in the early years dated from World War II, when French production was relocated due to the Nazi occupation. After the
war, these laboratories became small Moroccan units.
Socioeconomic policy then started to focus on industrialization. One enlightened policy implemented by His late
Majesty King Hassan II was the introduction of subsidies
to encourage pharmacists to invest in the pharmaceutical industry. The pharma sector inMorocco therefore
enjoys sixty years of experience, which is quite considerable. We were amongst the first countries in Africa, along with
South Africa, to adopt efficient administrative organization
of health: it led to the creation of the Drug Division, the
National Control Laboratory, the New Code of Pharmacy,
and so on. This infrastructure was envied.
However, historically, and even today, the pharmaceutical
industry was based on the license model. What we ended up
with was a number of national labs working under license
for multinationals. Representation through license, in a
country that is poor and limited in purchase power, results
in a small-batch market, which dragged the market down: no
product in the country issues over 15,000 units per month.
This small-batch logic leads to high manufacturing costs.
14
Healthcare & Life Sciences Review: Morocco
Yet the market has opted for a focus on quality and GMP
compliance. Morocco, for making this effort and also thanks
to the National Drug Order, has been able to compete with
Europe in terms of quality. Imagine the efforts that were provided by the manufacturers to reach these levels!
HCLS: What were the consequences of market
organization?
AL: We find the following characteristics today: an industry
of small batches, heavily dependent on imports of APIs, with
high manufacturing costs and limited economies of scale.
With a situation like this, one might have doubted the future of our pharmaceutical industry, but no such thing happened for the manufacturers, who never lost confidence and
faith in their industry. Consumption is constantly growing,
steadily if not exponentially. Indeed, Morocco remains a
poor country so consumption increases at its own pace. In
the 2000s, Morocco also experienced a renewal, a palpable
socio-economic development; the middle class emerged and
drug consumption was able to increase.
Another factor also predominates: in the last five or six
years the country has entered a new phase; social coverage
was very low but became mandatory (AMO – mandatory
health insurance), and although it does not provide 100 percent coverage, I defend it as a smart model, for it is better to
improve coverage incrementally than to attempt full coverage all at once.
Today, this coverage goes up to 40 percent and in addition,
there is a system in place for the weakest households: Ramed,
which covers nearly eight million people, or nearly 25 percent
www.pharmaboardroom.com
THE PAST & FUTURE
OF THE DOMESTIC INDUSTRY
Abdelilah Lahlou, Iberma
of the population. Even AMO gradually improves and it
appears that by 2017 or 2018, it will include a maximum
of members since new people are added each year.
HCLS: Why has the sector’s reorganization taken so
long?
AL: Following the commotion in the pharmaceutical industry, which incidentally happened at the same time as the
Arab Spring, politicians, pharmacists and manufacturers
found themselves face to face, and things needed some serenity and rationalism. Bad days seem to be over and Morocco
has found a dynamic for the development of its pharmaceutical industry which will take it further. Three years ago we
signed a program with His Majesty for the emergence of the
pharmaceutical industry; unfortunately the manufacturers
may have failed to seize this opportunity, which is probably
why we now have to backtrack so we can reconsider our options (organization in ecosystems for instance). The dynamic is very vibrant: investment goes on, the number of market
entrants has multiplied, and a market composed of multinationals at the beginning now includes generic makers
from all over the world, including Indians, Portuguese, and
Spanish companies. All this heralds a continuous evolution
in the drug sector for the years to come.
Morocco has everything to gain from properly creating industries that sustain countries, such as aerospace, automotive,
agricultural and pharmaceutical industries. This is the future
of Morocco, the added value that will allow its development.
Personally and also as a pharmacist, I am committed to this
end. It is my duty to be a responsible manufacturer! I believe
that everyone has understood these needs and that it is why
this industry even exists, even if it is not a bed of roses.
YOUR HEALTHCARE PARTNER
www.iberma.com
www.pharmaboardroom.com
Healthcare & Life Sciences Review: Morocco
15
MANAGING THE PRICE CUTS
Mehdi Zaghloul, Novartis Morocco
MANAGING
THE PRICE CUTS
PharmaBoardroom asks MEHDI ZAGHLOUL, country
president and general director of Novartis Morocco, and
former president of Maroc Innovation et Santé (MIS), what
were the main achievements of his term at the association.
“The main achievement was to help the industry overcome a very tough period that began with the implementation of a new price law in Morocco. The first step was dealing with the impact that the announcement had on the
market in January 2014. The market shrank by around
4.5 percent, which is significant for an emerging market like
Morocco. Our biggest challenge was to avoid stock-outs and
continue to address distribution issues while restoring confidence across all channels. The second step was maintaining
an open dialogue with the health authorities and ensuring
that the price cut would be linked to a regular reimbursement
situation. For the last three years, all reimbursements were
completely frozen in the country, the official reason being
to re-assess prices in order to manage costs at the insurance
level. One commission per month is supposed to take place,
but for the last four months only one has been organized.
This was painful, but at the end of the day, reduced prices means improved access, which means that ultimately,
the benefits will be felt by the wider population.
In 2010, a new methodology for drug pricing was introduced by the Moroccan Ministry of Health based on seven
selected counties (France, Belgium, Spain, Portugal, Greece,
Turkey and Saudi Arabia). The idea was that the set price for
any drug in Morocco would be lower than in those countries.
We persuaded the authorities that while this would be acceptable for newly registered products, for generics it would not.
We finally convinced the authorities to reduce the local price
based on a price average.
16
Healthcare & Life Sciences Review: Morocco
Another element was persuading companies interested
in investing in Morocco to go through a local partner, as
according to Moroccan law you need to be hosted by a local pharma organization. The difficulty was that the margin required for the access costs was around 15-20 percent:
it was not viable to use the lowest price from a basket of seven
countries and additionally face extra costs of 20 percent. We
lobbied to reduce the import tariffs to 10 percent, which was
reflected in the decree published in December 2013.
Last year, we spent at least two days per week at the
Ministry of Health, discussing with all stakeholders, and
overcame the challenges of restoring growth in the market through access to tenders, such as those issued as part
of RAMED (Regime d’Assistance Medicale), which is still
being implemented. The authorities are managing RAMED without a full
complement of essential drugs due to a lack of funding.
Although the budget dedicated for drugs has increased, it
has focused on volumes without diversifying drugs and consequently we still do not cover all diseases.
RAMED covers all employees officially declared, which
represent 30 percent of the population. This is a great
achievement.
The other point is that today in Morocco we have a new
law covering intellectual property, which was announced on January 15th, 2015. We are, as a result, the first
non-European country to have signed a memorandum with
the European Patent Office (EPO).”
www.pharmaboardroom.com
Are you looking to
grow your business
in a developed
Asian market?
01
02
Register
as a visitor
using
media code:
CPKR232
MANAGING THE PRICE CUTS
Mehdi Zaghloul, Novartis Morocco
South Korea’s generic market is projected to grow on average 5%
per year between 2013 – 2018 to a staggering $23.84 Bln.
South Korea closely ranks after China and India as the third “best
outsourcing destination” in Asia.¹
03
Korea Drug Development Fund (KDDF) will promote the development
of the Korean biotechnology sector in the Asia Pacific region aiming
to produce 10 new treatments by 2019.
04
Investment in R&D and related facilities is very active and
establishment of plants according to the international standards
is increasing.
¹ The changing dynamics of pharma outsourcing in Asia, PwC.
URL:
www.cphi.com/korea/visit/register
7 - 9 September 2015 • COEX • Seoul
Supported by
Organised by
www.cphikorea.com
Join the conversation @cphiww #cphikorea
www.pharmaboardroom.com
Healthcare & Life Sciences Review: Morocco
17
Morocco
STRAP IN HERE PLEASE
Strap subhead in here please
UNCLOUDED
AMBITION
Photo Credits: Mohamed Melehi | 2015 Courtesy of Loft Art Gallery | www.loftartgallery.net
Morocco was among the first nations in Africa to
develop a pharmaceutical industry over 60 years ago.
18
Healthcare & Life Sciences Review: Morocco
www.pharmaboardroom.com
COVER STORY
Morocco, Unclouded Ambition
O
UR SUCCESS GREW FROM A FRAMEWORK
WHERE PHARMA COMPANIES NEEDED TO
PRODUCE LOCALLY, WHICH LED TO INDUSTRIAL INVESTMENTS IN MOROCCO,”
explains Mohamed Houbachi, president of both
Polymédic, a local producer, and AMMG, the Moroccan
generics association. “This was a tremendous force in the
development of the sector.”
But then the business model changed. “Instead of
working on 100 percent local production, companies that
wanted to enter the market in Morocco would launch
their own products under license with local laboratories,”
Houbachi explains. This business model is still widely
in place to this day. “Local pharma companies were only
seen as providers for the local market, and not as a sector that could export and that therefore deserved to be
developed.”
“We find the following characteristics: an industry of
small batches, heavily dependent on imports of APIs, with
high manufacturing costs and limited economies of scale.
With a situation like this, one might have doubted the
future of our pharmaceutical industry, but no such thing
happened for the manufacturers, who never lost confi
dence and faith in their industry,” adds Abdelilah Lahlou,
general manager of Iberma. “The infrastructure is there,
and this is what has made the country successful: I have
personally received representatives from other countries,
who were amazed with what we managed to put in place
in the country,” he enthuses. “Bad days seem to be over
and Morocco has found a dynamic for the development
of its pharmaceutical industry which will take it further.”
Morocco has clear ambitions: with a strong focus from
King Mohammed VI on forging partnerships with other African countries, the country is keen to develop its
pharma industrial base and export capabilities. Minister
of Industry Moulay Hafi d Elalamy has included pharmaceuticals in the list of “ecosystems” which will boost the
Moroccan economy according to the Ministry’s Industrial
Acceleration Plan.
The Moroccan market is also changing: the outcome of
the 2011 Moroccan Arab Spring was very different from
www.pharmaboardroom.com
HOUSSAINE EL
LOUARDI
Minister
of Health
MOULAY HAFID
ELALAMY
Minister
of Industry
those of its neighbors. A referendum was held, which
led to a new Moroccan constitution making access to
healthcare a constitutional right. In April 2012, King
Mohammed VI officially launched the Medical Assistance
Plan (Regime d’Assistance Medicale – RAMED) across all regions of the country, with the aim of improving access to
healthcare for the poorest segments of the population.
Although universal healthcare coverage is still a long way
off, RAMED now covers eight million Moroccans, with
over 50 percent of the population covered with some form
of social security in 2013.
“The social and political transformations experienced
by Morocco and other Arab countries have helped raise
our awareness, and changed our approach,” explains
Morocco’s minister of health, El Houssaine Louardi, voted
Healthcare & Life Sciences Review: Morocco
19
COVER STORY
Morocco, Unclouded Ambition
MOHAMED
HOUBACHI
ABDELILAH
LAHLOU
ABDELMAJID
BELAICHE
President,
AMMG
General manager,
Iberma
Director general,
AMIP
Abdelmajid Belaiche,
director general of AMIP
the country’s most popular minister in January 2015.
The government has put together a health sector strategy
to take the country through to 2016, of which RAMED
is a key component. “To overcome Morocco’s health
challenges, we must have mandatory, universal coverage,
so that people can access care without having to pay up
front,” he explains.
THE HISTORY OF PRICE CUTS
SINCE 2012
2012
Price cut on 400
medicines of between
30% and 50%
2014 (JUNE)
Cut on 1,578
medicines of between
30% and 60%
2013
New price cut on
320 medicines of
up to 60%
2015 (JANUARY 1 ST)
Latest cut on 98
medicines
Source: Presse Economique.
20
Healthcare & Life Sciences Review: Morocco
“
“
Now, the worst is behind
us: 2014 was really an
annus horribilis for
the sector
SHIFTING SANDS: MARKET RESTRUCTURING
Part of the strategy for making universal healthcare achievable in Morocco is a series of price cuts: although in 2014,
volumes increased 2.8 percent, the market in terms of value
shrank by 4.7 percent during the same period.
“I believe that now, the worst is behind us: 2014 was really an annus horribilis for the sector,” admits Abdelmajid
Belaiche, director general of the Moroccan Association of
Pharmaceutical Industry director general (AMIP). “Despite
this, we hope that in 2015 things will start again on the right
foot. AMIP agrees with the price cuts: they make sense in a
country like Morocco, where people have difficulties accessing medicine. Medicine is not expensive in Morocco, but
its citizens are poor. In this context, the cuts are very just.”
What the industry understood less was a four percent transfer
of margins towards the pharmacy sector. “This transfer of margins hit us. We suffered more from this
lowered margins than from the price
lowering itself.”
Jacques-Henri Charpentier, director
general of Bayer Healthcare Maghreb,
explains that there are still some important steps left in the reform process. “The
JACQUES
procedures concerning the Autorisation
HENRI
de mise sur le marché (AMM), the price
CHARPENTIER
decree, access to reimbursement, all this
Director general,
Bayer Healthcare
is still in play. The year 2015 should alMaghreb
low for extra clarification so that by the
www.pharmaboardroom.com
COVER STORY
Morocco, Unclouded Ambition
MOHAMED EL
BOUHMADI,
Bayer’s manufacturing plant
CEO,
ZenithPharma
DRISS CHAOUI
Director general,
Afric-Phar;
HUBERT
DE RUTY
President, MIS
end of the year, beginning of 2016, we start with the politics
of medicine having been clearly settled, and that will allow for
the predictability that is so essential for MNCs.”
“The price decree hurt many laboratories, in particular the MNCs, and we are now waiting for accompanying
measures and have already discussed this with the ministry.
Indeed the price cut is a laudable cause but now one has to
ensure that the medicines are available on the Moroccan
market,” says Hubert de Ruty, country manager of Pfizer
Morocco and president of MIS (Maroc Innovation & Santé),
Morocco’s association for innovative pharma companies.
“The priority for us is access to treatments for patients,
particularly important in an emerging country. This is likewise the priority of the minister of health, who is someone
who has taken important decisions to really advance the
debate and has put in place serious reforms impacting the
daily lives of Moroccans.”
the quality of generics. I believe that the generics consumption
figure is low because of the lack of a comprehensive medical
coverage system,” says Driss Chaoui, director general of AfricPhar. “However, with the current reforms being enacted by the
government, we are seeing an improvement and believe that
the consumption of generics will significantly increase.”
However, it will be a long road to more than double the
current rate of generics penetration, and there are still a number of legislative steps that could be taken in order to ease the
transition. “70 to 80 percent of government tenders specify
generic medicines. Products in these tenders are actually referred to under the international nonproprietary name (INN)
system, and not under brand names,” continues El Bouhmadi
of ZenithPharma. “In order for generics penetration to soar,
doctors should be able to prescribe using INN labels, and
pharmacists should be able to substitute products. It’s not
possible as of today in Morocco.”
GETTING THE GENERICS EQUATION RIGHT
“
www.pharmaboardroom.com
“
“Today generic medicine accounts for 30 to 35 percent of
the market, but I truly believe that this share will grow in
the coming years,” says Mohamed El Bouhmadi, CEO of
ZenithPharma, a fast growing Moroccan company.
“Morocco is a country highly classified by the World Health
Organization, with a pharmaceutical industry that has been
around for more than 60 years and plants that operate to
European standards. So, the problem is not associated with
The problem is not associated
with the quality of generics.
I believe that the generics
consumption figure is low
because of the lack of a
comprehensive medical
coverage system
Driss Chaoui, director general of Afric-Phar
Healthcare & Life Sciences Review: Morocco
21
COVER STORY
Morocco, Unclouded Ambition
WHY INVEST IN MOROCCO?
The long history of the Moroccan
pharma sector has produced a relatively strong industry with undeniable expertise and skills.
Sanofi was one of the first comHAISSAM
panies to believe in the potential of
CHRAITEH
Morocco, and today, that historical
President and
director general,
commitment shows: the company
Sanofi Morocco
has a 20 percent market share in the
country. “Sanofi has a historic presence in Morocco
going back 60 years,” explains Haissam Chraiteh, president and director general of Sanofi Morocco. “We were
the first pharmaceutical company in Morocco with
two affiliates, our own business, namely Sanofi, and a
twin company, Maphar, which acts as a service provider and partner for a certain number of multinational
laboratories.”
Today, Morocco remains a strategic location for the
company. “Ten years ago, Sanofi developed an innovative treatment for malaria. We created partnerships
in Africa to deliver treatments at affordable prices.
These programs developed well and at a certain point we
needed to increase our production capacities. We chose
Morocco as the place to do this, as it is an African country in which we already had a base and that was starting
to develop in terms of regional importance. Ten years ago,
we invested enormously in the production site and later in
the development of export activity, “ explains Chraiteh. In
2013, Sanofi renewed its commitment to Morocco, launching a new distribution platform, and receiving a visit from
the company’s CEO, “who opened this platform alongside
the minister of health,” he continues. “We needed to modernize our distribution capacity and hence the development
of the new distribution center that allowed us to manage both our local production needs and our ambitions
in Africa.”
Courtesy: SANOFI
22
Healthcare & Life Sciences Review: Morocco
www.pharmaboardroom.com
COVER STORY
Morocco, Unclouded Ambition
KHALID EL
ATTAOUI
BRAHIM
OULAMMOU
AYMAN CHEIKH
LAHLOU
Director general,
Tecnimede
Director general,
Promopharm
Director general,
Cooper Pharma
Another investor, Tecnimede, the Portuguese pharma company, chose Morocco as its first subsidiary outside Europe. “Tecnimede was established here in 1999,”
explains Khalid El Attaoui, director general of
Tecnimede Morocco. Tecnimede decided in 2009 to
build a new plant in the country. “We decided to opt
for Morocco for numerous reasons,” El Attaoui remarks. “Morocco has for quite a long time had the desire to attract outside investment and as such the necessary fiscal policies have been put in place, policies
concerning the level of VAT and company tax rates.
Also, Morocco, being politically open, has signed a
number of free trade agreements with numerous countries which Europe does not have free trade agreements
with, notably Turkey and the USA.”
“We have one production plant in Morocco, alongside two partnerships with Polymedic and Sothema,
allowing us to develop local products in the country,”
explains Bayer’s Charpentier. “Around 70 percent of
what we sell on the Moroccan market is produced locally.” Charpentier goes on to explain that Morocco is also
serving as an export location. “This year we are going to
start using our production plant in Morocco to export
a certain number of products, initially to the Maghreb
region and eventually to the wider African continent,”
he reveals.
Will companies continue to find Morocco an attractive investment destination, given its relatively
www.pharmaboardroom.com
Cooper’s offices in Casablanca
small market size? In 2011, Jordanian pharma company Hikma acquired Promopharm, a local Moroccan
player. “For Hikma, Morocco is very important, first
for its own domestic market but also due to the many
opportunities for entry points it provides into the
region and Africa,” explains Brahim Oulammou, director general of Promopharm. “While there isn’t a pharma
company in Morocco that hasn’t found the last few
years difficult, it is important to take a long-term perspective. Hikma remains convinced that Morocco is a
good investment.”
THE GATEWAY TO AFRICA
“In the past Morocco always looked towards the north
but never towards the south,” says Adil Zanfari, president
of Genpharma, a local generics player. “When we compared ourselves, it was always to Spain, France and
England, but never to the likes of Senegal. Before when
we wanted to travel to Africa we had to go via Brussels,
London or Paris. Now we can take a plane directly to Africa.”
Cooper Pharma, a leading Moroccan company, has
been in Africa since the late 1990s. “There is a real
coherence with regards to this Moroccan strategy,
a relationship not based on exploitation but on working
together to evolve together in a win-win cooperation for all
the countries concerned,” explains Ayman Cheikh Lahlou,
Healthcare & Life Sciences Review: Morocco
23
COVER STORY
Morocco, Unclouded Ambition
Myriam Lahlou Filali,
CEO of Pharma 5 Group
“
“
Moroccan drugs are well
recognized for their quality;
the professionalism of the
teams, the francophone
culture, and the geographic
proximity are also assets
Sanofi’s offices in Morocco
director general of Cooper Pharma. “We have signed a
project to promote local manufacturing in the Ivory
Coast and we believe that just as Morocco has a certain
degree of self-sufficiency when it comes to the production of medicines, with a high level of manufacturing
quality, that other countries in Africa should develop
the same capacity.”
“Morocco indeed has the potential to become a hub
for the pharmaceutical industry in Africa, because it is
endowed with considerable assets,” says Myriam Lahlou
Filali, the CEO of Pharma 5 Group, a leading Moroccan
generics company that recently invested MAD 250 million (USD 24.82 million) in a new production plant.
“Firstly, its strong industrial base makes the difference with Algeria and Tunisia. Morocco also enjoys
an excellent reputation and the trust of our African
partners. Moroccan drugs are well recognized for their
quality; the professionalism of the teams, the francophone culture, and the geographic proximity are also
assets. Our African partners actually tell us that Morocco
could eventually have the potential to supplant Indian
and Chinese products, which suffer from an increasing
deficit in trust.”
24
Healthcare & Life Sciences Review: Morocco
However, Moroccan regulation does
not make direct exports to Africa
easy, as Mohamed El Bouhmadi of
ZenithPharma points out. “It is extremely difficult to reach out directly
to Africa because of the lack of structure currently in place in Morocco: we
MYRIAM
LAHLOU FILALI
have to use French companies as intermediaries. I hope that authorities conCEO,
Pharma 5 Group
sider as a priority to set up in Morocco
a hub that will allows us to go straight
to Africa without any European intermediaries which
increase delays and distributing costs of drugs on the
African continent.”
This view is shared by Lamia Berrada and Samir
Bachouchi, chairman and general manager of Bottu,
a Moroccan market leader. “Unfortunately, Moroccan
legislation does not allow the creation of a direct export
platform. It is a pity that our products go to Europe to be
distributed in Africa! For a direct platform to be viable,
it should be able to distribute in Africa products that originated outside of Morocco. We can either opt for an offshore structure or ask for permission and support from
www.pharmaboardroom.com
COVER STORY
Morocco, Unclouded Ambition
the authorities to create a regulatory
framework to open the door to this
project. This is something that manufacturers want, and they are working on it to make things happen,
for this is a priority for the sector,”
they conclude.
ALI BENNIS
However, the challenges of entering
President,
Laprophan
African markets are numerous: taken individually, markets are generally
small, with poor infrastructure and low
access to medicine. Will the African strategy be enough to
grow the Moroccan industry sustainably? For Zanfari of
Genpharma, “to build a Moroccan pharmaceutical giant
company we need to go beyond our borders. This is our objective on a long term basis. Becoming an African regional
player with a presence in all 54 countries in Africa.”
Laprophan, one of the leading Moroccan companies, has
its sights on more developed markets. “We are targeting
www.pharmaboardroom.com
Europe and North America especially for our patented medicines,” explains Ali Bennis, the company’s president. To do this, it is building “a huge state-of-the-art
new manufacturing plant of 92,000m2” that will conform
to FDA and EMEA standards. “We can benefit from the
free trade agreement with the United States to enhance
our exports to this high potential pharmaceutical market,”
he explains.
Others believe the industry needs a change of strategy.
“We need to find the means to innovate, even if these are
incremental innovations,” says Cheikh Lahlou of Cooper
Pharma. Some, such as Abderrahim Derraji, founder of the
website Pharmacie.ma, advocate a more collaborative approach with representatives of the industry speaking with
a unified voice.
“What matters is that Morocco is a country where
nothing is impossible,” concludes AMMG’s Houbachi.
“Morocco is a country where we know how to take up challenges —the first of them being stability.”
Healthcare & Life Sciences Review: Morocco
25
PARTNERSHIPS AND EXPORTS
Lamia Berrada
& Samir Bachouchi, Bottu
A CLOSE
PARTNER FOR
MULTINATIONALS
LAMIA BERRADA & SAMIR BACHOUCHI, the chairman
and the general manager of Bottu discuss their flagship
product, Doliprane, the potential for export to the rest of
Africa, and partnerships with European labs.
HCLS: What was the impact on Bottu’s activity in
Morocco of the recent multiple health reforms, such
as the implementation of RAMED?
LB&SB: Before RAMED, there was AMO (Mandatory
Health Insurance). Its implementation was a wish of
the pharmaceutical industry, who expected a market
explosion with the introduction of universal coverage.
Previously, only 15 percent of the population enjoyed
medical coverage, i.e. the employees of large companies
that would provide healthcare cover, and civil servants.
The impact of AMO, increasing coverage up to thirty
percent, was that of a mountain that roared to bring
forth a mouse: the efforts to encourage AMO have hardly resulted in the expected progression, sales have not
improved that much, but rather continued to increase
at regular rate.
Then RAMED, which covers the poor, has been set up
to continue with the commitment to gradually install
universal healthcare coverage. RAMED resulted in significant state purchases of medicines, very large ones in
the case of chronic diseases. However, it happened that
the manufacturers engaged in fierce competition, with
abnormally low prices. This had a perverse effect, causing a misconception among the public and the authorities about margins in our industry, while the industry
had reasoned in terms of marginal cost: their market
being mainly focused on private clients, they assumed
26
Healthcare & Life Sciences Review: Morocco
Lamia Berrada, Chairman, Azzedine Berrada, President, Samir Bachouchi,
General Manager, Bottu
that the distribution of their drugs at exceptionally low
prices to healthcare institutions would result in renewed
prescriptions thereafter on the private market. This is a
theory that has never been proven. RAMED has provided lots of market volume but did not generate any actual economic interest for the industry, margins being
non-existent in this market.
HCLS: These two consecutive price declines of 2013
and 2014 have had a particularly negative impact on
the pharmaceutical industry, especially regarding the
margin transfer to pharmacies, which has been poorly
understood by the industry. In this quite sluggish context, Bottu is doing interestingly well and grew by 11
percent in the same period. Can you comment on this?
LB&SB: Indeed, this is real progress. However, our
growth is not necessarily related to the domestic market,
because we have developed a lot in export, activities that
served as our growth drivers, while the private domestic
market has experienced flat growth. The domestic market
barely increased over the same period, 2.7 percent growth
in units and hardly any improvement in terms of sales.
There has been no compensation between volume and
turnover. However, Bottu has opened new therapeutic
areas, including cardiology, ophthalmology, as well as
women’s health, more recently, which provided us some
solid growth.
www.pharmaboardroom.com
PARTNERSHIPS AND EXPORTS
Lamia Berrada
& Samir Bachouchi, Bottu
HCLS: You work with major pharmaceutical companies including Abbott and Boehringer Ingelheim,
to name a few. What is the appeal of Bottu for them?
LB&SB: One of our characteristics is to be among the
laboratories that both work internally developed products
and licensed products as well. We have always been relatively close to multinationals, and we have also developed our
own portfolio of generic products, each business accounting for about half of Bottu’s overall activity.
Laboratories interested in Morocco meet every potential
partner, and this is where we enjoy a reputation in the market that we are proud of: Bottu is viewed as a professional
team, serious, invested in quality and continuous improvement. We get good press, both with the ministry and professionals of the sector. To be recommended is an honor,
and it helps a lot.
In addition to this, multinationals just don’t blindly entrust people with their products, they come to check, send
their own auditors who review the facilities and processes.
Here again, we are proud to successfully complete the different steps, which are challenging every time.
HCLS: Exports are now a highly strategic part of
Bottu’s development. Can you tell us more about the
African journey of your laboratory?
LB&SB: Exports started with the new management team:
preliminary work began in the mid 2000s, the license was
www.pharmaboardroom.com
granted in 2008 and export marketing started in 2009.
We established an exports division and allocated the appropriate means for it to prospect, register products and
launch them on their respective markets.
We have innovated, in the sense that we have not entrusted any existing promotion structure with our products, but instead decided to rely on major European
distributors in Africa for our logistics, while retaining
promotion under our control. We settled a team of our
own in each country to promote our products, we have
dedicated agents, sales representatives that we train
internally, and our regional managers turn between
teams to organize the work on each field. Our training
team also regularly goes on site to maintain the level of
our delegates.
Because of our performance there, we now receive offers to take on products that are not our own in order
to promote them in these African markets. Our expertise
there brought us some external activity, outside our line.
HCLS: One major issue for laboratories with aims
to work in Africa is ethics, especially regarding the
activity of sales representatives. How do you address
this challenge?
LB&SB: Medical promotion teams there are recruited
by us. We train them, and they are dedicated to Bottu.
The people who train these teams, in sales technics,
Healthcare & Life Sciences Review: Morocco
27
PARTNERSHIPS AND EXPORTS
Lamia Berrada
& Samir Bachouchi, Bottu
scientific aspects and also business ethics are the same as
in Morocco. We simply deploy the same working methods
that we work with here at Bottu Morocco, in the hands
of promotion teams that are under our direct authority:
we do not delegate any promotional aspect on our products. Therefore, promotion teams in these markets are
subject to the same rigor in work, the same reporting as
in Morocco.
HCLS: Although Morocco has made its opening
to Africa and South/South cooperation, one of the
cornerstones of its foreign and industrial policy,
the pharmaceutical industry seems to suffer from a
lack of state support for the promotion of exports.
What forms could this support take?
LB&SB: Indeed, regulation suffers from some rigidity. However, I believe that now, there are people paying
more attention, and taking our message into account. It
might prove interesting for Morocco to create a distribution platform from Morocco towards the outside, so that
all Moroccan producers could use it to export to African
countries. Unfortunately, Moroccan legislation does not
allow such structures, which exist elsewhere, for example
in Europe. Our initiatives so far have come to an end, but
we hope to make other attempts and build something.
It is a pity that our products go to Europe to be distributed in Africa!
For such a platform to be viable, as the trade routes between Morocco and Africa are very busy, it should be able
to distribute in Africa products that originated outside of
Morocco. The issue is simply that the regulations do not
authorize goods to enter Moroccan territory. Now we can
either opt for an offshore structure or ask for permissions
and support from the authorities to create a regulatory
framework to open the door to this project. This is something that manufacturers want, and they are working on it
to make things happen, for this is a priority for the sector.
Another obstacle to the competitiveness of Moroccan
laboratories is the slowness of marketing authorization
applications in the Moroccan market. We sell licensed
28
Healthcare & Life Sciences Review: Morocco
It might prove interesting
for Morocco to create
a distribution platform
from Morocco towards
the outside, so that all
Moroccan producers
could use it to export
to African countries
products and often the laboratories that entrust us with
their marketing authorizations are surprised by the complexity and demands of the Moroccan authorities, as compared to Europe itself.
From the laudable desire to secure as much quality
of drugs as possible on our market, unfortunately, they
might have overestimated their capacity to face the volume of work that this entails. Obviously, to export a product to Africa, it must have received the Moroccan MA.
Then, the whole recording process has to repeat in export
markets. On this point, the current minister has pledged
to reduce the lead-time for marketing authorization down
to ten months. Things are getting more fluid.
HCLS: You are also on the way to Middle East.
What is the status of your other export markets?
LB&SB: We are interested in the Middle East. We
also have operations with Azerbaijan, Kazakhstan, and
Algeria where our first order should be distributed any
day now. The Algerian market is actually terribly complicated; we have been working on this opportunity for
years and we are pleased that things finally got through.
Through Kazakhstan and Azerbaijan, we intend
to go to CIS countries. We also work with Libya through
single orders.
www.pharmaboardroom.com
DOLIPRANE IN MOROCCO
Bottu And Doliprane
DOLIPRANE:
A MOROCCAN
EXCEPTION
Preface: Everywhere in the world, Sanofi controls
the rights to Doliprane. Everywhere except Morocco,
where the drug is the number one product on the
market in both sales and volume.
“I
n 1998, Aventis wanted to retrieve one of its bestknown products from a previous license. “After
much negotiation and discussion, we finally agreed
on the purchase of Doliprane and the line’s exploitation rights in Morocco, for quite a large amount at
the time,” reveal Lamia Berrada and Samir Bachouchi,
chairman and GM of Bottu. “This is how since the 2000s,
Doliprane belongs to Sanofi all around the world, except
in Morocco, where it is Bottu’s property.”
“Doliprane has been our flagship product, we have
worked a lot on it, there was a particular enthusiasm for
it and thus it has become the identity of our laboratory,”
they continue. “We also shared a wonderful partnership
with the promotions company we used to work with, and
its leader who was truly passionate about the product.
The work in the field was exceptional, and immediately
propelled Doliprane as a leading product in Morocco,
number one in volume and then in turnover from
the year 2007, exceeding Augmentin.”
Doliprane has been our flagship
product, we have worked a lot on it,
there was a particular enthusiasm
for it and thus it has become
the identity of our laboratory
www.pharmaboardroom.com
Healthcare & Life Sciences Review: Morocco
29
CSR SPOTLIGHT
Sanofi, Diabetes
And Mental Health
SANOFI ATTACKS
THE CAUSES
OF DIABETES
AND MENTAL
DISORDERS
HAISSAM CHRAITEH explains the thinking behind
Sanofi’s two most recent CSR programs in Morocco,
tackling diabetes and mental health across the more remote
regions of the country.
B
etween November 2012 and December 2013, four
campaigns rolled out across Morocco to raise
awareness of diabetes. As a result of these campaigns, 1,400 people signed up for voluntary testing and
115 new cases of diabetes were detected.
These campaigns were a direct result of an agreement, signed in July 2012, between Sanofi Morocco and
La Fondation Mohammed VI de Promotion des Œuvres Sociales
de l’Education, aimed at boosting the level of education in
Morocco about diabetes and how to treat it. Diabetes affects 1.5 million people in Morocco, of which only a fifth
are dealt with by the public health services. Sanofi is currently helping Morocco strengthen its capacity to treat
patients: under a three-year agreement, the company is
helping the Moroccan authorities develop evidence-based
clinical practice guidelines, while also training doctors and
other healthcare personnel.
Sanofi’s CSR track record in Morocco in recent years extends beyond diabetes to other areas. As Haissam Chraiteh,
president and director general of Sanofi Morocco, explains,
2013 was a particularly important year for the company,
as the company signed a number of agreements with the
Moroccan authorities, for both diabetes and mental health:
30
Healthcare & Life Sciences Review: Morocco
HAISSAM
CHRAITEH
President and
director general
of Sanofi
Morocco
“It was a year with numerous events for Sanofi and our
partnership with the authorities marked our strong commitment to the country and the wider region.”
According to the Moroccan daily LeMatin, approximately 40 percent of the population aged 15 years and
older experience some form of mental disorder in their life.
Worldwide more than 450 million people are affected by
mental health issues. In developing countries, 80 percent
of them are not treated. Poor understanding, inadequate
training of health professionals and a lack of accessibility to
medicines are major barriers to treatment. Discrimination
faced by patients and their families have deterred the use of
specialized care services.
Professeur Driss Moussaoui, President of the Moroccan
Society of Psychiatry, argues that “mental illnesses are
among the most destructive and yet the easiest to treat.
We urgently need to talk about, and inform people about
this illness so as to lift the taboos and fight the stigmatisation of patients.”
www.pharmaboardroom.com
CSR SPOTLIGHT
Sanofi, Diabetes
And Mental Health
It is important to remember
that this illness does not only
concern educated citizens,
but citizens living in rural areas
with low levels of education
leading to a lack of understanding
concerning the symptoms
of mental illnesses
Aware of the growing challenges posed by these chronic diseases worldwide, Sanofi was the first major health
group to develop a Global Mental Health Action Plan
with a specific focus on access to care for mental health
in developing countries. The Public Private Partnership
for Access to Mental Healthcare was initiated by Sanofi in
www.pharmaboardroom.com
Morocco and established as of October 2008 in the region
of Benslimane. A new agreement was signed in April 2013
with the Ministry of Health to expand the partnership nationwide. The aim is to reinforce care facilities by training
40 psychiatrists, 40 neurologists, 160 GPs and 160 nurses,
while raising awareness about chronic diseases among the
Moroccan people.
“There is an important psychological aspect behind
mental illnesses in Morocco,” stresses Chraiteh. “Mental
illnesses are poorly understood by the population and is
stigmatised because it scares people. It is important to remember that this illness does not only concern educated
citizens, but citizens living in rural areas with low levels of
education leading to a lack of understanding concerning
the symptoms of mental illnesses.” The World Association
for Social Psychiatry (WASP) and Sanofi are associated, in
this spirit, since 2009, through the FAST project (Fight
Against Stigma) to combat the stigma and discrimination
many people suffer with mental disabilities.
Healthcare & Life Sciences Review: Morocco
31
RISING STAR
Mohamed El Bouhmadi,
ZenithPharma
THE
DRAGON OF
MOROCCAN
PHARMA
MOHAMED EL BOUHMADI,
the CEO of ZenithPharma, discusses
the potential of Africa for Moroccan
pharma companies, and what it
takes to succeed in the Moroccan
pharma market.
HCLS: ZenithPharma’s headquarters are located in Agadir. Why did
you choose Agadir?
MEB: Historically, we started our business in the pharmaceutical industry
here when we opened a wholesale distribution business in Agadir. Strictly
geographically speaking, Agadir lies in
the middle of Morocco. Industrially
speaking, the city is very interesting
because there are plenty of human resources and executive managers, and
also because there is a wide logistical
offer. Lots of companies are already
there, which is interesting for us because this makes it easier to communicate
and share, for instance, with companies from the food-processing industry or from the process manufacturing
industry.
At ZenithPharma we manufacture, import, promote and distribute
pharmaceutical, personal hygiene and
32
beauty products. To be closer to our
customers we also have wholesaling
structures – four as of today –and we
will have more soon. The first is in
Agadir to supply the southern part
of the country, the second is in
Casablanca for the capital and the center of the country, the third is in Fes for
the northern and the eastern part of
the country, and finally the fourth is in
Marrakech for the central-eastern part
of Morocco. The way we are organized
helps us to make our products accessible to our customers and be closer to
them. Alongside this, we work with all
the Moroccan wholesalers.
HCLS: Could you describe us the
company strategy, specifically the
share of products under license and
your own line of products?
MEB: Historically, we chose the licensing business model. We have
Healthcare & Life Sciences Review: Morocco
around 20 products under license
on which we work with multinational laboratories from Europe, the
United States, and Asia. Licensing
contracts allow us to benefit from
the transfer of technologies, to
manufacture or to import the
products and to distribute on
the Moroccan market and in other
places. We also have cross licensing
agreements: our partners benefit
from our products and we benefit
from theirs.
We have lines of products organized according to therapeutic needs.
Some are under license. Others are
ours; we buy the exploitation rights.
The products under license are often innovative ones so we are not
only a generic medicine company
but also an innovative one. We believe we need to do both. There are 35
million people living in Morocco.
www.pharmaboardroom.com
RISING STAR
Mohamed El Bouhmadi,
ZenithPharma
We started with a factory project in 2002.
Our business was authorized in 2005.
From 2006 to 2010 we doubled our revenue every
year. Today we belong to the top ten Moroccan
laboratories and we are the first market provider
all activities combined
Ten percent of them can afford to
buy innovative products and are
covered by different private healthcare insurance systems. We must
provide them with these innovative products in Morocco; otherwise
they will buy them from abroad.
But we also need to sell generic
medicine because it’s cheaper to
produce, which helps reaching out
patients, even the most underprivileged ones. Today 30 percent of the
population is covered by Assurance
Maladie Obligatoire (AMO).
HCLS: Tell us about the African
adventure of ZenithPharma.
MEB: Morocco always worked
with a south-south cooperation
perspective – in all areas, including
the health sector.
The only issue is that it is extremely difficult to directly reach out
Africa because of the lack of structures. So we have to use French
companies as intermediaries. It
makes the transaction more expensive but at least guarantees our products will be on the African market
rather quickly. I hope that the authorities consider it a priority to
set up a hub in Morocco that will
www.pharmaboardroom.com
allow us to go straight to Africa without any European intermediaries,
which increases delays and distribution costs in African countries.
HCLS: How do you see ZenithPharma and Morocco in five
years?
MEB: I have no doubt that
Morocco will evolve in a good way.
In five years’ time Morocco will
realize its potential as a gateway to
Africa for Europe –Morocco being
distant from Europe only by 14km.
It is an interesting platform with
all the structures in place. There is
everything needed as far as infrastructure is concerned today –notably
highways. There are also excellent
human resources: lots of graduates
with good skills and international
experience. So Morocco is on the
right path and will get in the game
with Africa.
ZenithPharma will also be more
developed because we look at the
African potential as something very
important. We can’t evolve without
Africa – or, to a certain extent, without Asia. If we have to set up a
goal it is to reach the same revenue
in Africa and in Morocco.
ZenithPharma is a laboratory with
the best evolution in the Moroccan
industry. We started with a factory
project in 2002. Our business was
authorized in 2005. From 2006 to
2010 we doubled our revenue every
year. Today we belong to the top
ten Moroccan laboratories and we
are the first market provider all activities combined.
This is not mere luck. Our policy
is clear. There is a wide investment
program involved. We have partnerships. We choose and select our
partners and it’s kind of our secret.
Results are very concrete. We are
very lucky to have such a wonderful team. Most of our executive
managers are young and very dynamic. Something uncommon we
are proud of is that we work with
lots of women –without any salary
gap or any responsibility discrepancy. Half of our leadership committee is female. We are a local structure organized as a multinational
company. We have the same standards, the same rules, and the same
processes as multinational companies. Today our partners often
come to find us. We see it as a form
of recognition.
Healthcare & Life Sciences Review: Morocco
33
THE INNOVATION GAP
Radia Chmanti Houari, GSK Morocco
FACING
MARKET
CHALLENGES
Morocco has become GSK‘s
regional hub thanks to the quality
of human capital in the country,
explains the company’s area director
RADIA CHMANTI HOUARI,
president and general manager
for North Africa, who also comments
on the reason why she remains
optimistic for the future of Moroccan
pharmaceutical industry.
HCLS: We have heard from the
industry that after a very difficult
last two years, the worst is now behind us. What do you see as being
the remaining challenges?
RCH: The last two years were
highly challenging for the pharmaceutical industry globally, with
the uncertainty and turbulence
caused by the implementation of
the new pricing system. I believe
we have now managed to overcome
this hurdle by keeping the patient
at the heart of everything we do,
ensuring that the supply chain remains open and that the patient is
provided with the required treatment at the right time. Still, for future development perspective, we
need to recover from the large drop
faced during the previous two years
where growth was flat and early
2014 pharmaceutical market was
34
declining. One of the key drivers
for sustained growth is expanding
access to treatment. Access barrier
is limiting for Morocco pharmaceutical development as a country,
with only around 40 percent of
the population covered by public
health insurance and more than
50 percent out of pocket funding.
Government implemented several
Healthcare & Life Sciences Review: Morocco
initiatives to increase access and
expand health coverage to a larger portion of the population, by
putting in place global healthcare reform. Only expanded access will allow patients benefit
from innovative and quality medicine and ensure higher market
growth. Another growth driver is
new products introduction in the
www.pharmaboardroom.com
THE INNOVATION GAP
Radia Chmanti Houari, GSK Morocco
Only expanded access will allow patients
benefit from innovative and quality medicine
and ensure higher market growth
coming years, helping to address
the need for government to offer
larger and better treatment choice
to patients, and the need for research based pharmaceutical companies to offset for the impact of
the price decrease implemented
by Government and continue development strategies.
HCLS: When we met with
Mohamed Benali Khoudja, VP
and General Manager for GSK
Algeria, he mentioned that “without a shadow of doubt Algeria
can become a regional hub.”
What impact will the growth
of the Algerian market have on
the Moroccan operations of GSK?
RCH: Today, I am leading GSK
North Africa, based in Morocco, supporting three countries: Morocco,
Tunisia and Libya. We are ranked
second in pharmaceutical market in
both Morocco & Tunisia and GSK
is leading the industry in many
therapeutic areas: vaccines, anti-infective and respiratory. More than
100 people are working at GSK
Morocco today.
We cannot compare both markets:
dynamics, growth potential, regulations and political environment
are completely different. Having
www.pharmaboardroom.com
said that, there is no impact on our
Markets. However, the quality of
Human capital will be decisive on
where the regional Hub will be located in the Maghreb.
HCLS: Global CEO Sir Andrew
Witty recently described the acquisition of Novartis’ vaccines
business as a “major step forward
in the group’s strategy to create a
stronger and more balanced business.” What impact will this deal
have on Morocco?
RCH:
The government has
achieved a great effort to provide
all children with vaccination and
GlaxoSmithKline is a key partner
in this process, ensuring that we
are putting all in place to increase
access, makingit affordable for the
maximum number of patients.
HCLS: What are the growth and
investment opportunities for GSK
in Morocco?
RCH: GSK has several partnerships
with local companies in Morocco,
either for manufacturing or secondary packaging. One of these partnerships is related to vaccines secondary packaging. Vaccines operations
require highly technical skills and
are an important component in our
business. This is a great opportunity for knowledge and technology
transfer to Morocco. While anti-infective products are the base of our
business and this will continue,
the growth driver will definitely be
our respiratory portfolio; GSK has
a particularly important and innovative pipeline for the future which
will help expand our presence
in Morocco.
HCLS: When you took on your
current role in 2012, what was your
vision for GSK in the country?
RCH: The priority for GSK and
as a member of Maroc Innovation
& Santé (MIS), is to have the necessary accompanying measures for,
a smooth market authorization
process, an effective reimbursement
system, to allow availability of innovative drugs for patients.
Improving the reimbursements
system is challenging because of
the budget constraints, leading
government to put in place many
cost containments measures. But
I do believe in the willingness to
move forward, from industry,
healthcare professionals and government side. We need to work
very closely to find and implement
solutions together.
Healthcare & Life Sciences Review: Morocco
35
MOROCCAN M&A
Brahim Oulammou, Promopharm
MOROCCO:
THE MISSING
COMPONENT
BRAHIM OULAMMOU, the general director of
Promopharm (a Hikma company) explains why Hikma
decided to invest in the Moroccan market, why a long-term
perspective is needed when judging the government’s
reform agenda and how the main priority will always be
responding to patient needs.
HCLS: In 2011 Hikma acquired a 63.9 percent stake
in Promopharm. Why did Hikma decide to invest in
the Moroccan market?
BO: The investment in Morocco follows a straightforward logic: Hikma is present everywhere in the Arab
World, it is present in Egypt, Algeria, Tunisia, Saudi
Arabia and in all the countries of the Gulf, but Morocco
remained the one country missing from its map. For
Hikma, Morocco is very important, first for its own domestic market but also due to the many opportunities
for entry points it provides into the region and Africa. In
addition, despite having production facilities in Europe,
Hikma is not yet present in the European market. Today,
the company has three production facilities in Europe;
and the location of Morocco is certainly a good way into
Europe. Given the advantageous and strategic geographical location of Morocco, it was natural for Hikma to
develop a presence in the country.
hasn’t found the last few years difficult, it is important
to take a long-term perspective Hikma vision for investing in Morocco today remains the same as it did before.
While the local industry has gone through a difficult period, Hikma remains convinced that Morocco is a good
investment.
Only a minority of Moroccan patients have access to
treatment which is currently reaches below 50 percent
of the population. As such, the potential for growth
remains considerable. The reforms currently being enacted by the Moroccan government will have a positive
long-term impact. They would not become visible immediately as these are projects that take time to show
an impact. Improving hospital infrastructure is also
crucial; when it comes to access to medicines, this is
a key first step. The government is following a logical
reform process but it takes time and we are conscious
of that.
HCLS: Given the difficult last two to three years for
the pharma industry in Morocco, does Hikma consider its acquisition of Promopharm to be a good
investment?
BO: It would certainly be considered a good investment.
While there isn’t a pharma company inMorocco that
HCLS: We have heard that there are many local laboratories specialising in generics and that too much
competition in this area is damaging growth prospects. What is your positioning on the local market?
BO: Our first priority is to respond to local needs. The
Moroccan patient needs to have at his or her disposal
36
Healthcare & Life Sciences Review: Morocco
www.pharmaboardroom.com
MOROCCAN M&A
Brahim Oulammou, Promopharm
Hikma is present everywhere in the Arab World, it is present
in Egypt, Algeria, Tunisia, Saudi Arabia and in all the countries
of the Gulf, but Morocco remained the one country missing
from its map
medications to treat the full range of therapeutic areas.
Our objective is to ensure that our products are widely accessible and at affordable prices. Generics clearly have their
role to play in this and we make sure that they are available. Likewise, innovative treatments also have an important role to play and we also produce such drugs by working with multinational partners. Promopharm turnover is
equally generated from generics and originators. And we
are aware that medicines that are not currently available
for the Moroccan patient, such as biosimilars, need to be in
the future. There are many biosimilar products that today
are not available on the Moroccan market and we are working to change this, while ensuring that the highest levels
of standards are maintained. Moreover all generics that we
provide to the Ministry of Health have been authorized either in Europe or the USA.
Hikma excels in the injectable field, accounting for half
of the company´s turnover and produced in the USA and
Europe. We look to benefit from Hikma´s experience for
the benefit of the Moroccan patient.
Another area in which we are deeply involved is oncology. Hikma has developed a number of products in this
area, and has a dedicated structure in Europe for this
purpose. These products are of excellent quality that are
produced according to European norms and which we
look to put at the disposal of the Moroccan patient.
HCLS: Oncology is a particularly competitive field
in Morocco. What can you bring to this market that
is different?
BO: Our objective is to provide oncology treatments
that are not yet available in the country. It is indeed a
www.pharmaboardroom.com
competitive field, but there still are unmet needs and
we look to provide alternative products. This is where
we see the potential for growth, by providing certain
treatments that are not currently being prescribed and
therefore increasing patients’ options and improving the
quality of care.
HCLS: Talking about growth prospects, do you believe Promopharm can use Hikma network to become a gateway for the African continent?
BO: Hikma benefits from the power that its subsidiaries
have in their respective countries. Promopharm can have
a particular advantage given that we have the backing of
a much larger entity. Our objective is to use this power to
serve West Africa by proving high quality products with
affordable prices.
HCLS: Having started your position at Promopharm
just five months ago, what is your five to ten year
vision?
BO: Morocco still has many unmet needs our main priority will always be to respond to the needs of patients
and support the development of the health care sector in
the country, which is in line with Hikma strategy and the
company culture perpetuated within the Group.
Given the large number of patients that don’t have
access to proper health care system and the reforms currently being enacted by the authorities, we believe in the
development of the Moroccan Health Care Sector. This
is the most important point to consider and the reason
I am optimistic about the potential of the Moroccan
pharma market.
Healthcare & Life Sciences Review: Morocco
37
ONCOLOGY IN ACTION
Projects To Improve Treatment Levels
FIGHTING
CANCER FROM
THE MAGHREB
Preface: How Princess Lalla Salma, the wife of the King of
Morocco, is helping push the oncology agenda in Morocco.
“I
Morocco will become a hub for
North Africa for oncology
Mehdi Zaghloul
foundation, several thousand patients have already
received treatment and benefitted from the most
advanced therapies in Morocco.
Roche is not alone in investing in oncology in Morocco:
Novartis is also planning in investments. “Novartis
Oncology has just completed the acquisition of the GSK
oncology portfolio, a landmark achievement in our mission to help improve the lives of cancer patients. Morocco
will become a hub for North Africa for oncology,” reveals
Mehdi Zaghloul, country president of Novartis Morocco.
“In 2012, we were the first company in Morocco to sign
a memorandum of understanding with health authorities and the Ministry of General Affairs. There were
three pillars to this agreement. The first was to provide
the country with innovative access programs in order to
allow all Moroccans to benefit from innovation. The second one was building up training capabilities, helping to
create new local centers of excellence. The third element,
as demonstrated with oncology in Morocco, is working
closely with the WHO and health authorities to build up
our level of know-how.”
n Morocco, only 30 to 60 percent of the population
have access to drugs, and even fewer have access to
oncology drugs, which means that there still is a lot
of work to do to improve this situation,” explains Ralf
Halbach, general manager of Roche Morocco. “We are
not only talking about oncology drugs, but also preventative measures and education around this devastating disease.” Since 2007, Roche has been in partnership with the Lalla Salma Association Against Cancer, a
Moroccan anti-cancer NGO founded by HRH Princess
Lalla Salma, to improve hospital infrastructure and provide ongoing training for medical and paramedical staff
in oncology.
With more than 40,000 new cases each year, and a
high therapy cost attached to the disease, fighting cancer truly a societal priority for Morocco. The partnership between Roche and the Lalla Salma Foundation
was renewed in 2013, allowing the
most impoverished sections of
society access to the latest oncology treatments. Patients are selected according to a number of medical and socioeconomic criteria:
shortlisted patients are analyzed
by a commission that decides
on a case-by-case basis which
patients are eligible to be part of
the program. Thanks to the partPrincess Lalla Salma (second left) in Basel at Roche headquarters in 2012. Photo © Maroc Agence Presse
nership between Roche and the
38
Healthcare & Life Sciences Review: Morocco
www.pharmaboardroom.com
PharmaBoardroom.com
STRAP IN HERE PLEASE
Strap subhead in here please
Local Conversations, Global Connections
20,000 members and counting...
A directory of 4000 companies &
CEOS in 35 countries and counting;
Over 1500 1-on-1 discussions with
C level executives Worldwide
Over 45 reports available for download
Press releases from around
the world and articles posted
www.pharmaboardroom.com
Healthcare & Life Sciences Review: Morocco
39
EXPORT OPPORTUNITIES
Driss Chaoui, Afric-Phar
AFRICAN
HORIZONS
DRISS CHAOUI, general director of Afric-Phar, explains why it is difficult for the
local players to compete with multinationals, how the Moroccan market is being
reformed for the better and why companies should be looking to Africa to boost
their growth prospects.
HCLS: What are Afric-Phar’s
strengths that make it an interesting
partner to other companies?
DC: We are a Moroccan pharmaceutical laboratory established in 1966, one
of the first pharma companies to have
been entirely founded by Moroccan
pharmacists. Back in the 1960s, there
had only been laboratories created
by foreigners that were later bought
by Moroccans.
While we are proud of our Moroccan
heritage, we represent today a large
number of prominent European companies and multinationals through
in-license agreements, distribution and
partnerships such as Baxter, Hospira,
Allergan and Ranbaxy. In addition, we
have our own production facilities and
product lines in generics, which we are
constantly developing.
When you look at the way the pharmaceutical industry is evolving, it
clearly appears that ensuring a successful partnership can present a number
of challenges for many companies.
Partners need to feel confident about
their alliance strategies as they rely on
patents, confidentiality and trust: this
40
is a key consideration when deciding
whom to partner with.
We were able to build enduring partnerships based on trust and results
with leading multinational companies, a fact that confirms our well-established reputation for integrity.
Our quality, safety and environmental
management systems have been continuously accredited by AFAQ, certifying that our quality system meet the
highest standards. We also have an unrivalled experience of the national and
regional market with extensive expertise in regulatory affairs thanks to our
strong presence. This helps us provide
our partners with real value added services and guidance, which allows them
to make informed business decisions.
HCLS: The generics market in
Morocco covers only 30 percent of
the market, a comparatively low
number when compared to other countries. How do you explain
this? Is it a problem associated with
quality?
DC: That’s an interesting question.
Morocco is a country highly classified
Healthcare & Life Sciences Review: Morocco
by the World Health Organization,
with a pharmaceutical industry that
has been around for more than 60
years and plants that operate to the
European standards. So, the problem
is not associated with the quality of
generics. I believe that the generics
consumption figure is low because
of the lack of a comprehensive medical coverage system. However, with
the current reforms being enacted
by the government, we are seeing an
improvement and believe that the
consumption of generics will significantly increase.
HCLS: What do you see as the
main opportunities for growth
and investment in the North
African region for multinational
companies?
DC: With its very young population, Africa is continuously developing and changing for the better. Its
growth rates are slowly approaching
those of Asia, and multinationals are
waking up to the enormous potential
that the continent presents. Taking
South Africa out of the equation,
www.pharmaboardroom.com
EXPORT OPPORTUNITIES
Driss Chaoui, Afric-Phar
at the forefront of this potential
are the North African countries like
Morocco.
The strategic geographical location
of Morocco plays a big role in attracting investors, and the government has
put in a great effort to actively encourage foreign investment. The U.S.
Free Trade Agreement (FTA) and the
Association Agreement with the EU
are strong signals that indicate the
openness of the Moroccan authorities
to foreign investment. We can also
mention that despite the recent political events in the region, the country
is still broadly regarded as politically
stable and as a key hub for the African
economy.
Most importantly, we have the
knowhow and expertise in the pharmaceutical industry, a factor that facilitates partnerships with local manufacturers and distributors. It is also
true that the local consumption remains very low in comparison to other countries. But when you look at the
broader picture and the government’s
health coverage reforms, you see a real
growth potential.
www.pharmaboardroom.com
HCLS: In 2002 Tecnimede acquired part of Afric-Phar. What has
been the impact of this investment?
DC: Indeed, Tecnimede acquired a
portion of Afric-Phar under a co-development plan from 2002 to 2014,
which was beneficial to both parts. We
represented Tecnimede under license
and accompanied them until they
built their own facilities to become
an independent structure inMorocco.
Our partnership evolved into a new
system of manufacturing contracts
and distribution services, maintaining our collaboration and taking it to
a whole new level.
HCLS: You have been director
of Afric-Phar since 2001. What is it
that motivates you every day?
DC:
Before joining Afric-Phar,
I worked in General hospital and
private clinics as an Intensive Care
Anesthetist. During that time,
I was very close to the patients and heard
many of their concerns. This background provided me with a patient-oriented mindset that helps me better
understand what needs to be done,
and I believe that working at AfricPhar gives me the opportunity to do
more. Since my tenure as General
Manager, I have signed many partnerships with laboratories specialized
in orphan diseases such as Genzyme,
Actelion, Sobi and Orphan Europe to
treat special patient cases. Knowing
that I can help change people’s lives
for the better is humbling and gratifying. I am also motivated seeing that I
can contribute to the improvement of
the Moroccan health sector in general.
People want to live longer, better and
healthier, but the cost of health care
is still a challenge. I think it is our responsibility to help increase access to
treatments for the benefit of theMoroccan patient.
I must also mention that I am fortunate to be surrounded by great leaders
at Afric-Phar who inspire me everyday.
HCLS: What is your five-year vision for Afric-Phar?
DC: We are looking to expand our
product portfolio and strengthen our
sales force in the Moroccanmarket,
especially in chronic diseases such as
cardiology, neuropsychiatry and rheumatology. We are also envisaging a
greater presence in the African countries. We are currently operating in
12 different countries in the continent, essentially in the French Western
region, and we would like to develop
this further. We are looking at numerous options, in particular whether to
go with a production site or a distribution platform.
Healthcare & Life Sciences Review: Morocco
41
PRODUCTION HUB
Myriam Lahlou Filali,
Pharma 5 Group
SIGHTS
SET ON
THE STATES
MYRIAM LAHLOU FILALI,
CEO of Pharma 5 Group, one of
Morocco‘s largest pharma companies,
discusses the real potential of Africa
for the country’s drug manufacturers,
the potential for exporting Moroccan
drugs to the US, and the growth
opportunities in the domestic market.
HCLS: There is much talk about
Morocco being a pharmaceutical
hub for Africa. What are Morocco’s
strengths and weaknesses as a potential hub?
MLF: Morocco indeed has the potential to become a hub for the pharmaceutical industry in Africa, because
it is endowed with considerable assets. Firstly, its strong industrial base
makes the difference with Algeria and
Tunisia. Morocco also enjoys an excellent reputation and the trust of our
African partners. Moroccan drugs are
well recognized for their quality; the
professionalism of the teams, the francophone culture, and the geographic
proximity are also assets. Our African
partners actually tell us that Morocco
could eventually have the potential
to supplant Indian and Chinese products, which suffer from an increasing
deficit in trust.
42
MYRIAM
LAHLOU FILALI
CEO,
Pharma 5 Group
Yet, being a hub could turn against
the country it the Moroccan industry
is not protected by our authorities.
Many foreign players are highly interested in our country for the reasons
I just mentioned: our authorities will
have to enforce the law, which requires
having a production site in the country to be granted pharmaceutical establishment status. But more and more
foreign companies are establishing
operations here without a production
site: they are present in the country
without investing in production, and
often merely import their product or
perform secondary packaging, while
production capacities and the technology do exist in Morocco. We ourselves regularly get canvassed by these
companies wanting to rent our facilities to import their products or pass
them through to Sub-Saharan Africa.
One telling statistic is the domestic
Healthcare & Life Sciences Review: Morocco
production rate: according to data
from the exchange office, Morocco
secured 60 percent in production of
drugs consumed in the country in
2008, against only 54 percent in 2013.
Our position is clear: we are not
opposed to new entrants. But this
should not jeopardize the Moroccan
industry and local production. Our
country’s independence is at stake.
Foreign players are most welcome,
provided they invest in plants, produce drugs here, and create wealth
and employment.
HCLS: You operate in 35 countries
to date. What is your strategy to invest new markets?
MLF: We are present in all of francophone Africa, and we are starting
operations in Anglophone Africa.
There are countries with great potential, such as Nigeria and Kenya,
www.pharmaboardroom.com
PRODUCTION HUB
Myriam Lahlou Filali,
Pharma 5 Group
but political instability makes things
a bit more complicated.
In African countries, we have our
own dedicated sales teams, over 100
people to promote and market our
products. Our priority is to consolidate our positions there. We aim
to become the 15th laboratory in
each African market within three
years. In Senegal, we are already 17th.
For now, we operate primarily in
private markets because our priority is to establish our brand. In
2015, we are starting to respond to
public tenders.
The next step will be to set up
a unit in one of our key countries,
Ivory Coast, Senegal or Cameroon,
and then to move progressively and
secure technology transfer: first with
secondary packaging, then implementing production units in easily duplicable forms, and finally injectable
www.pharmaboardroom.com
penicillin, the most difficult in terms
of pharmaceutical technology.
Regarding the MENA region, our
approach is a bit different: we have
a partner in each country – there
is no centralized distribution like
in Africa – but in the same way as
Africa, eventually we will set up our
own sales teams in the region.
HCLS: What about the US: will
Pharma 5 ever export there?
MLF: There is a lot of growth potential for us in the US, where over
80 percent of drugs consumed are
generics. This is far from the case in
Morocco, where generic consumption only stands at 30 percent, including public markets – there are huge
steps to be made in this area by the
authorities. We are currently working
with an FDA team that is auditing us,
targeting FDA certification in 2016.
HCLS: Is there still potential
left in the Moroccan market?
MLF:
The potential of the
Moroccan generics market is
linked to the development of our
citizens’ living standards, of social coverage and of RAMED. The
motto of Pharma 5 is “quality of
care begins with access to care”,
and this refers to both financial
and geographic access. We were
frontrunners, going into areas
previously neglected by others.
These people still have huge needs.
The state has made great progress
towards the territorial opening up
of rural populations, thanks to the
INDH programs inaugurated by
His Majesty the King to develop access roads and infrastructure. This
plays and will play a key role in the
access to health for all citizens.
In addition, Pharma 5 has a
foundation that works on access to
care through medical caravans in
rural areas. There are fortunately
many volunteer doctors and staff,
and we support all logistics and
drug supply. Last week, we went on
a caravan with 70 doctors. 3,600
prescriptions were issued over a
day and a half! The need is gigantic. RAMED is bringing the beginnings of an answer, but this issue
is still huge. It will take time of
course, but people are now aware
of this right to healthcare.
Covering it is crucial for our country, and it will be leverage for
national independence.
Healthcare & Life Sciences Review: Morocco
43
COMPANY INDEX
Including list of advertisers
Advertisers
COMPANY NAME
Abbott Afric-Phar AMIP AMMG Bayer Boehringer Ingelheim Bottu Cooper Genpharma GSK Hikma Iberma IMS Health Lalla Salma Association Against Cancer Laprophan Ministry of Health Ministry of Industry MIS Novartis Pfizer Pharma 5 Group Pharmacie.ma Polymédic Promopharm Roche Sanofi
Tecnimede World Economic Forum ZenithPharma 44
Healthcare & Life Sciences Review: Morocco
PAGE #
27
21, 40, 41
5, 8, 9, 20
5, 19, 20, 25
12, 13, 20, 21, 22
27
4, 24, 25, 26, 27, 28, 29
23, 24, 25
23, 25
12, 13, 17, 34, 35
11, 23, 36, 37
14, 15, 19, 20
8, 9, 10
38
25
5, 16, 19
19
5, 16, 21, 35
16, 35, 38
21
24, 42, 43
5, 25
19
11, 23, 36, 37
12, 13, 38
22, 24, 29, 30, 31
22, 23
6
2, 8, 21, 24, 32, 33
www.pharmaboardroom.com
STRAP IN HERE PLEASE
Strap subhead in here please
www.pharmaboardroom.com
Photo © page 1 : Moroccan mosaic. Flickr: Carlos ZGZ
Photo © page 5 : Spices Souk. Flickr: Will Kirby
Photo © page 14: Morocco CMS CC-BY. Flickr: Carlos ZGZ
Photo © page 29: Morocco CMS CC-BY. Flickr: Carlos ZGZ
Photo © page 30: Golden Hour. Flickr: Jamie McCaffrey
www.pharmaboardroom.com
Healthcare & Life Sciences Review: Morocco
45