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The Palestinian Pharmaceutical industry is unique in terms of development. The industry boomed after the six days war in 1967, which resulted in closing borders with the Arab World. Prior to this event, pharmaceutical products were imported from foreign companies via importers in Jordan. After 1967, imports from Jordan became problematic. The only products available were either Israeli or products imported through Israeli agents.

 

The difficulty in obtaining medicine encouraged 9 pharmacists in the West Bank to establish small laboratories to manufacture simple syrups and anti-diarrheal products in 1969. Political and economic instability soon threatened the viability of capital investment in the pharmaceutical industry, and indeed in all industries. In 1970, these 9 laboratories merged in 3 larger companies, Jordan Chemicals in Beit Jala, Palestine Medical Company in Ra-mallah, and Jerusalem Pharmaceuticals in Al Bireh.

 

Today, the Palestinian pharmaceutical industry consists of 6 companies, four in Ramallah, one in Beit Jala, and one in the Gaza Strip. With products covering more than half of the local consumption. The pharmaceutical industry is a key element of the Palestinian healthcare continuum.

 

The Palestinian pharmaceutical industry employs more than 1,000 employees, 70 percent of them hold specialized university degrees in the different aspects of the industry. During the past decade, the industry has invested more than USD 50 million in modernizing the production processes and in improving the industry’s premises, leading the Palestinian pharmaceutical industry to increase its market share in the Palestinian market from 20 percent to 55 percent.

 

In March 2008, and following decades of efforts and significant investments which aimed at the development of resources and production lines, and the institution of ISO procedures, international and national compliance audits, Birzeit Pharmaceutical Company was granted the World Health Organ-ization certificate of Current Good Manufacturing Practices. The award of this certification is a considerable achievement given the difficult working conditions faced by Palestinian companies due to the Israeli occupation and restrictions, and mainly the blocking of borders and interaction with the global world. The certification reflected the achievement of international standards in manufacturing practices in a critical industry, this certification assisted the Pharmaceutical Industry and strengthened its position in the local market and increased its ability to penetrate foreign markets.

 

Today, foreign pharmaceutical companies have set aggressive marketing strategies focused on emerging markets and based on cost cutting and direct marketing. This strategy, was an outcome of the world economic crisis, the concentration on generic manufacturing in the world and the quest for new markets. Such strategy has affected the local generic manufacturers not only in Palestine but all over the emerging markets, which had to reconsider their pricing policy and follow direct marketing channels as well.

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