A new incentives package is in the works for pharma players: The Madbouly government is preparing a bundle of incentives to attract more investment to the pharma sector, sources in the sector told EnterpriseAM. The plan includes measures to resolve long-standing issues like rigid pricing, the high cost of drug registration, and the sector’s reliance on imported active ingredients.

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A new pricing mechanism could be coming: The incentives package will include a more flexible pricing mechanism that balances sector profitability with the state’s strategic oversight of med prices, the sources said. The new pricing framework would be overseen by a specialist committee working alongside the Egyptian Drug Authority (EDA), they added.

REMEMBER- Some 500 local pharma firms had previously submitted price adjustment requests to the EDA, citing a major increase in production costs, we were told earlier this month. At the time, the source told us that the EDA rejected the requests.

Import substitution in the spotlight: Some 90% of the sector’s output depends on imported active ingredients — and the new package will reportedly prioritize localizing their production, the sources said. Incentives could include tax and customs breaks for production lines, machinery, and equipment that support localization efforts.

Making drug registration simpler: The plan will also include steps to slash the drug registration fee — which recently rose from EGP 1 mn to EGP 5 mn — and expedite the process.

That’s not all: The government is also planning to introduce new financing initiatives for manufacturers that are looking to scale exports and localize production, the sources told us.

ICYMI- The government wants to double pharma exports to USD 3 bn by 2030. Sector players have recently called for fresh financing initiatives to help local firms scale output and enter new markets.

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