BY: Hana Saada
ALGIERS- The national private sector in Algeria has undergone a remarkable transformation, asserting its presence and significance in the country’s economic landscape. In the healthcare domain, private entities have gradually carved their niche, utilizing adaptable strategies and seizing every opportunity to augment their influence.
The turning point for the pharmaceutical industry in Algeria dates back to the mid-1990s when a pivotal law mandated multinational pharmaceutical companies to invest and manufacture their products within the country in partnership with both public and private sectors.
This legislative decree catalyzed the inception of partnerships in this sector. Notable contracts were forged between American pharmaceutical giant Pfizer, French pharmaceutical powerhouse Sanofi, and the European Union pharmaceutical conglomerate GPUE with the Algerian Saidal group.
The objective was to produce various medications at a time when foreign companies exhibited hesitance towards investing in this sector. This initial step paved the way for the flourishing of the private sector, leading to the establishment of numerous production units through collaborations with foreign firms. In recent years, their number has surged to reach a staggering 200 production units, all of which have demonstrated their mettle by satisfying domestic demands for medicines and medical devices.
In just a few decades, Algeria has risen as one of Africa’s premier pharmaceutical producers, manufacturing a diverse array of drugs that address a spectrum of diseases, particularly chronic ailments. Private production units have played an instrumental role in covering nearly 70% of the nation’s generic medication requirements, a lifeline during periods of heightened global market volatility.
Amidst the backdrop of the global Covid-19 crisis, the presence of a robust, modern, and local pharmaceutical industry underscored its status as an invaluable resource that the nation could depend upon during trying times.
The dynamism of Algeria’s national private sector is conspicuously evident through the operations of various production units such as Biopharm, Biocare, IMC, Mérinal, and others. These companies supply not only the domestic market but also, in some instances, international markets with high-quality products that conform to international standards. Recently, these units have also ventured into the marketing of oncology products and anti-cancer drugs, endeavors necessitating intricate infrastructure and substantial investments.
Pharmaceuticals: The Driving Force of Algeria’s Industrial Landscape
Over the past two decades, the pharmaceutical industry in Algeria has experienced exponential growth, emerging as the linchpin of the nation’s industrial sector, as affirmed by experts in the field.
A persistent challenge for the national private sector has been to acquire the expertise required for the production of cutting-edge technologies. This sector harbors ambitions to perpetually enhance its production capabilities to align with scientific and technological innovations across the globe.
In light of this, Minister of Industry and Pharmaceutical Production, Ali Aoun, issued a call to private investors to bolster pharmaceutical production, thereby curtailing the import bill. He pledged that “the State will continue to support private investors and stand by their side, providing them with all necessary facilities and guidance to surmount any obstacles they may encounter.”
It is worth acknowledging that the national private sector has diligently pursued product development by engaging the national scientific and academic communities. This approach enables the sector to nurture specialized domestic talent and foster a homegrown industry primarily centered around generic medicines, which command an impressive 85% share of the market.
This commitment to promoting local production aligns seamlessly with a thoughtful and persistent public policy aimed at bolstering the pharmaceutical sector as a primary catalyst for the country’s economic advancement.
While the Algerian pharmaceutical sector currently fulfills 70% of the population’s needs with generic medications, the remaining 30% encompasses innovative products, a realm fraught with challenges. Both the public and private sectors are cognizant of the imperative to invest in human resources and research and development centers to tackle this challenge head-on, recognizing the necessity of nurturing innovation to meet the nation’s evolving healthcare needs.
The emergence of Algeria’s national private sector in the pharmaceutical domain is a testament to the nation’s resilience, adaptability, and commitment to self-reliance. With each stride forward, this sector not only contributes to the nation’s economic growth but also serves as a beacon of hope during turbulent times, underlining the profound impact that a thriving pharmaceutical industry can have on a nation’s well-being and prosperity.
