Business Monitor International’s (BMI) report on Lebanon’s pharmaceuticals and healthcare reveals that Lebanon’s Pharmaceutical Risk/Reward Rating (RRR), for the fourth quarter (Q4) of 2014, stood at 53.9 out of 100, which is higher thanQ3’s score of 52.7. Hence, Lebanon advanced one rank, compared to last quarter, to the sixth position in the Middle East and Africa matrix.
In the Industry Rewards category, which measures the market size and its growth potential, Lebanon scored 20.4 out of 44 in Q4, higher than Q3’s score of 19.2. On the other hand, Lebanon’s Country Rewards score, which measures pensionable population, population growth and urbanization, was 16.2 out of 21, same as the previous quarter’s score.
Moving to the Risks, Lebanon scored 9.5 out of 21 on the Industry Risks, more than the regional average of 7.7. This implies that Lebanon’s pharmaceutical sector is less risky for multinationals operating and wishing to operate in the country. The Industry Risks is composed of a subjective assessment of the country’s intellectual property laws, policies and reimbursement regimes, and the speed and efficiency of the approvals process. In contrast, Lebanon’s score for Country Risks for Q4 2014 was 7.9 out of 14, slightly above the regional average of 7.3. This reveals the high-to-medium level of risk associated with continuities in policy direction, the strength and balance of the country’s economy and the spread of corruption. Moreover, it exposes the instability of the government, poor legal framework and an excess of red tape in Lebanon.
Lebanon’s Pharmaceutical Risk/Reward Rating