Jordan's pharmaceuticals go global (page 2 of 2)

"I came to Jordan after 25 years working in the pharmaceuticals industry in the United States, Britain, southern Africa and Iran, and found the quality of facilities and technical personnel very high," he says. "In fact, technically Jordan would stack up with most countries"
He sees the major domestic weakness in the upper management area. "Most companies do not really have a strategic vision," he says. A major exception is the Hikma Group, which now includes Hikma Pharmaceuticals and Hikma Chemicals in Jordan, together with the wholly owned Hikma Pharmaceuticals in Portugal and Westward Pharmaceuticals in the United States, and two joint ventures, Hikma Ibn Bitar in Tunisia and Jazeera Pharmaceuticals in Saudi Arabia. "More Jordanian companies should follow the same route," suggests Glover, who believes that establishing manufacturing bases abroad and going for more contract production are the two most effective ways of overcoming investor reluctance to come into what is perceived as an unstable region.
Under contract. APM and Hikma Pharmaceuticals have already chalked up some success in the contract manufacturing area, particularly with Japanese manufacturers that do not generally have well established sales networks in the MENA region, while Advanced Pharmaceutical Industries is producing under license from two Swiss companies.
Despite its growing strength, Jordan's pharmaceutical industry has one major challenge to overcome in the form of World Trade Organization (WTO) membership. Jordan joined the WTO in 2000, and companies have only until 2005 to make sure that their production is fully in line with international patent regulations and standards. Matalka is confident that most companies will be up to standard by then; he suggests, however, that tough times might compel some to merge. He welcomes anything that will strengthen the industry. "People abroad do not distinguish between companies," Matalka says. "They just see Jordanian medicine, and the regulations are getting tougher every day."
Most areas of the pharmaceutical infrastructure have now been upgraded. Drug laws have been revised to take account of modern developments, and contract-manufacturing regulations are in place. Jordan already has a number of bio-testing centers and a new law covering clinical testing on humans was issued in early November. The ministry of health has also established a drug-vigilance center.
"Jordan now has what it takes to be part of the R&D [research and development] matrix worldwide," says Matalka. "We also have good physicians, private hospitals and laboratories, and the proper legal umbrella, including the best intellectual property protection laws between India and Europe."
Local companies should benefit from an article in the patents law that allows then to develop products under patent for the purposes of preparing a registration dossier, something also allowed in US law but not common in Europe. "A submission takes two years to organize, and it is gives a company an enormous advantage if it can submit the day a patent runs out," says Matalka. Finding a way around the complication of international patents and registration is not easy for small companies, but members of the JAPM now have the advantage of access to software that enables them to see exactly when any patent is due to run out in any country worldwide.
With the world market in generic drugs worth $14-15 billion annually and due to soar to $32 billion by 2004 when 35 of the leading molecules will be out of patent, getting in fast could be the key to long-term success for the entire industry. And Jordan could be just the place to get started.