In its quarterly Industry Risk/Reward Index for Q1, 2016, in terms of the pharmaceutical industry, Business Monitor ranked Lebanon 3rd out of 17 in the Middle East and Africa (MEA) region. Lebanon’s overall score was 59.8 out of a hundred, beaten by only UAE (62.5) and Saudi Arabia (59.8).
In terms of industry rewards, the medical device market in Lebanon scored 22.4 out of 44. With increased demand for medicines coupled with population growth and health care improvement, market growth will be seen but only to be constrained by the relatively small population, large urban/rural segregation and limited funding.
Looking at the risk factor involved with the industry, Lebanon scored 9.5 out of 21, above the regional average of 7.7. In hindsight, the country’s pharmaceutical sector is less risky for multinational operating and wishing to operate in the country. The downside here is the continued political uncertainty which threaten Lebanon’s risk profile for the future. In addition, multinationals continue to have concerns regarding the lack of data protection, an effective patent linkage system as well as continued problems in parallel imports.
Regarding country rewards, Lebanon scored 16.2 out 21. Lebanon’ score was one of the highest in the region (well above the regional average of 11.4) mainly due to the fact that the country reward factor mainly looks at pensionable population, population growth and urbanization.
Finally Lebanon’s score of 7.9 out of 14 for country risk was slightly higher than the regional average of 7.3. This came about from the instability of the government and poor legal framework.
BMI’s Pharmaceutical Risk/Reward Index in Lebanon Q1 2016
|22.4 out of 44
|9.5 out of 21
|16.2 out of 21
|7.9 out of 14