By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
    Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
    June 1, 2023
    Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
    Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
    June 1, 2023
    Egypt hosts InnoXera Summit on education in artificial intelligenceage
    Egypt hosts InnoXera Summit on education in artificial intelligenceage
    June 1, 2023
    Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
    Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
    June 1, 2023
    Egypt's new membership in New Development Bank enhances South-South cooperation: Al-Mashat
    Egypt’s new membership in New Development Bank enhances South-South cooperation: Al-Mashat
    June 1, 2023
  • Politics
    PoliticsShow More
    India train crash kills at least 207, injures hundreds 
    India train crash kills at least 207, injures hundreds 
    June 3, 2023
    Madbouly reaffirms Egypt’s unwavering assistance for Palestine
    Madbouly reaffirms Egypt’s unwavering assistance for Palestine
    June 1, 2023
    Egypt reiterates firm position in support of Palestinian cause: Shoukry
    Egypt reiterates firm position in support of Palestinian cause: Shoukry
    June 1, 2023
    Egypt and France discuss joint cooperation in the health sector
    Egypt and France discuss joint cooperation in the health sector 
    June 1, 2023
    AU praises Egypt's role in achieving sustainable peace in Africa despite challenges
    AU praises Egypt’s role in achieving sustainable peace in Africa despite challenges
    May 31, 2023
  • Interviews
    InterviewsShow More
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    May 31, 2023
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    May 25, 2023
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    May 8, 2023
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    April 29, 2023
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    April 18, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Novartis Egypt sees 18 pct growth in 2008
Share
Notification
Latest News
India train crash kills at least 207, injures hundreds 
India train crash kills at least 207, injures hundreds 
Politics Breaking News World
Adding flavour of innovation to F&B industry in Africa
Adding flavour of innovation to F&B industry in Africa 
Women
Egypt’s Women on Boards Indicator records 19.7% in 2022 with 3% growth
Egypt’s Women on Boards Indicator records 19.7% in 2022 with 3% growth
Women
Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
Banking
Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Politics > Novartis Egypt sees 18 pct growth in 2008
Politics

Novartis Egypt sees 18 pct growth in 2008

Sherine El Madany
Last updated: 2015/08/07 at 11:46 AM
By Sherine El Madany 7 Min Read
Share
SHARE

CAIRO: While the relentless global financial malaise could raise the blood pressure of jittery executives, it could be a silver lining for pharmaceutical companies such as Novartis.

“The pharmaceuticals sector is very important for people. Even when you have a crisis, you will continue to [consume] medicine and food; so the sector will be less affected by the crisis than banking and auto, said Ali Toker, president of Novartis Egypt.

Globally, pharmaceutical makers like Novartis have proven relatively resilient in the economic downturn as healthcare is usually one of the last areas where consumers cut back spending.

When the financial turmoil reared its ugly head in 2007, Novartis Egypt was able to hit growth rates of around 11 percent, he said. “In 2008, our growth rate climbed to 18 percent, which compares to an overall market growth rate of 14 percent, he added.

While growth rate could slow down this year, Toker said the company will likely continue to outperform the market. “Our growth rate will [remain] close to double digits in 2009; between 9 to 10 percent. Our performance will continue to beat the market because we launch new products every year.

The Swiss-based company poured in investments worth $15 million in 2007 alone to upgrade and expand its 80,000 square meter plant in Cairo, with the objective to produce 75 million packs in 2009 up from 68 million a year ago.

“We will also invest $3 million per year for the next five years to maintain our leadership position in the Egyptian pharmaceutical market, said Toker adding that each year the company introduces between two and three new products locally.

Swiss Vice President Doris Leuthard toured Wednesday Novartis Egypt’s plant as part of her economic mission to Egypt where she met with a number of policymakers and Swiss investors in Egypt.

“As Egypt and Switzerland singed a free trade agreement under the European Free Trade Association (EFTA) in January 2007, it has become important to promote bilateral trade and business ties, she told Daily News Egypt during the tour.

“We want more Egyptian companies to beef up their exports to Switzerland, added Leuthard, who is also head of the Swiss Federal Department of Economic Affairs.

In the first nine months of 2008, bilateral trade jumped to $549.8 million, out of which Swiss exports constituted $442.3 million and Egyptian exports $17.4 million.

While Egypt’s exports to Switzerland have been limited in quantity, Leuthard hopes her visit will help promote Egyptian exports. She sees strong potential for Egyptian food exports – as Switzerland is a net importer of food – as well as potential for Swiss pharmaceutical exports.

The Swiss drug giant Novartis established its Egyptian manufacturing facility in 1962. Novartis Egypt currently operates three divisions: pharmaceuticals, which specializes in innovation-driven prescription drugs; Sandoz, which produces generic prescription drugs; and consumer health which manufactures over-the-counter drugs.

The company’s total sales amounted to $150 million in 2008, said Toker, and “Our market share stands at 7 percent, which makes us Egypt’s number one pharmaceutical company.

The country’s pharmaceuticals market – worth some $2.3 billion – is rich, with “strong worldwide companies operating here as well as a number of very strong local ones, he said.

One way Novartis Egypt combats fierce market competition is by managing a diversified portfolio of products that are both innovative and affordable. “For prevention, you need vaccines. For healthcare, you need consumer products. And for diseases, you need innovative drugs, Toker said.

“We are doing our best to let the Egyptian [market] produce affordable products for the community, he added. “Prices in Egypt are the cheapest in the world; cheaper than in India and Bangladesh.

While Novartis Egypt says it will manage to shrug off the ongoing financial crisis, it faces other challenges including pricing of its exports, absence of universal healthcare plan, and violation of intellectual property rights (IPR).

“Pricing conditions of Egypt don’t allow us to export to all countries we want to like the Emirates, said Toker, explaining that one of the biggest hurdles facing exports is that traders want the same prices as Egypt’s.

“Pricing [in Egypt] creates a problem for our exports.but we are trying to come up with new strategies for pricing roles, he clarified.

Novartis Egypt’s exports currently constitute less than 1 percent of sales, with most production being consumed locally. The company rolled out Wednesday its first export consignment headed for Nigeria. The company is eyeing Venezuela, Chile, Brazil, the Middle East, and some European countries next.

“Our target is to increase our exports to 5 percent within the next five years, Toker said.

Another challenge for the company is absence of a universal healthcare insurance in Egypt, which would have helped make drugs more affordable for the wider population. “Without a universal health insurance, people have to pay for medicine from their pockets, and income levels in Egypt are [mostly] not high enough, he said.

As for IPR, Toker said that counterfeiting was one of the biggest problems drug manufacturing companies face locally. “Counterfeiting hurts people because they are buying drugs to get better; so it is not acceptable.

He complained that IPR laws in Egypt were not deterrent enough to prevent such malpractices. “Laws are not strong enough, and it is difficult to penalize violators. They keep repeating crimes over and over, so the law should be improved.

You Might Also Like

India train crash kills at least 207, injures hundreds 

Madbouly reaffirms Egypt’s unwavering assistance for Palestine

Egypt reiterates firm position in support of Palestinian cause: Shoukry

Egypt and France discuss joint cooperation in the health sector 

AU praises Egypt’s role in achieving sustainable peace in Africa despite challenges

TAGGED: FJP
Share this Article
Facebook Twitter Email Print
Previous Article Mido banned from facing Middlesbrough
Next Article Al Khan 7 February 2009
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

India train crash kills at least 207, injures hundreds 
India train crash kills at least 207, injures hundreds 
Politics Breaking News World
Adding flavour of innovation to F&B industry in Africa
Adding flavour of innovation to F&B industry in Africa 
Women
Egypt’s Women on Boards Indicator records 19.7% in 2022 with 3% growth
Egypt’s Women on Boards Indicator records 19.7% in 2022 with 3% growth
Women
Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
Banking
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?