1628Z. Mamedyarov (zaur.mamedyarov@gmail.com),
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow 117997, Russian Federation
Abstract. After more than 35 years of economic sanctions imposed by the United States following the Islamic Revolution of 1979, Iran finally gained relief in 2016. Despite its obvious negative impact, the long economic isolation did not prevent the development of some sectors of national economy, including pharmaceutical industry. After the suspension of Western sanctions, Iranian government proclaimed the necessity of modernization of the industry. This requires transition from a closed system based on production of generics to a more open and innovative scheme of development and international connections. Currently, Iranian pharmaceutical industry is domestically oriented and characterized by a small share of imports. At the same time, there are good opportunities for exporting Iranian medicines to a number of neighbouring countries which are characterized by dense population, extremely underdeveloped pharmaceutical industry and healthcare systems. The current volumes of pharmaceutical exports from Iran do not correspond to the available market demand. However, modernization of the national pharmaceutical industry faces a number of problems, including excessive state regulation and black market’s activities. In addition, while allowing foreign companies to enter its domestic market for the first time after a long isolation, Iran risks to see decreased activity in the field of local pharmaceutical R&D which may negatively impact on the prospects for entering the international pharmaceutical market. Moreover, in order to produce and promote the newest innovative pharmaceutical products, Iran needs to consider the international standards in the production of medicines and make every effort to join the WTO at the earliest. Leveraging the SWOT analysis, this article provides an overview of the current state and development prospects of Iranian pharmaceutical industry and reveals the gravest potential development challenges.
Keywords: Iran, pharmaceutical industry, regulators, sanctions, SWOT analysis, innovations
REFERENCES
1. Iran’s Pharmaceutical Market. Tehran, ILIA Corporation & Roland Berger, January 2017. 16 p. Available at: http://www.ilia-corporation.com/wp-content/uploads/2017/02/ILIARB_Pharmaceutical-in-Iran.pdf (accessed 28.07.2017).
2. Pharmaceutical Industry Iran: Current Status, Opportunities and Threats. Tehran, ILIA Corporation, March 2016. 11 p. Available at: http://www.ilia-corporation.com/wp-content/uploads/2015/06/Pharmaceutical-Industry-Iran-ILIA-Corporation-White-Paper-c.pdf(accessed 28.07.2017).
3. Iran Pharmaceuticals and Healthcare Report. London, BMI Research, 2016. 100 p.
4. Turkish Pharmaceutical Market 2015. Istanbul, IEIS, 2016. 32 p. Available at: http://www.ieis.org.tr/ieis/assets/media/kls/TR_Pharma_Market_2015_pdf (accessed 28.07.2017).
5. CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Germany. London, GlobalData, 2017. 254 p.
6. Kebriaeezadeh A., Koopaei N., Abdollahiasl A., Nikfar S., Mohamadi N. Trend Analysis of the Pharmaceutical Market in Iran; 1997–2010; Policy Implications for Developing Countries. DARU Journal of Pharmaceutical Sciences, 2013, vol. 21, no. 1, pp. 52-63. Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3718624/ (accessed 28.07.2017). DOI:10.1186/2008-2231-21-52.
7. Mohseni M., Gorji H.A., Ahadinezhad B., Khosravizadeh O., Keykaleh M.S., Moosavi A., Mohtashamzadeh B. The Structure of the Pharmaceutical Market in Iran Using Concentration Indices. Electronic Physician, vol. 9, no. 4, pp. 4251-4254.
8. Iran Market Watch: Pharmaceutical Sector. Dubai, Whispering Bell, 2015. 6 p. Available at: https://www.whisperingbell.com/pdf/Iran%20Pharma%202015_Teaser.pdf (accessed 28.07.2017).
9. Iran’s Pharmaceutical Sector to Become a Pharma Powerhouse Post Sanction Era – Biotechnology Sector to Have Lucrative Opportunities. Frost & Sullivan, December 2015. Available at: https://ww2.frost.com/news/press-releases/irans-pharmaceutical-sector-become-pharma-powerhouse-post-sanction-era-biotechnology-sector-have-lucrative-opportunities/ (accessed 28.07.2017).
10. Mehralian G. et al. Intellectual Capital and Corporate Performance in Iranian Pharmaceutical Industry. Journal of Intellectual Capital, vol. 13, issue 1, pp. 138-158. DOI:10.1108/14691931211196259.
11. Ansaripour A., Uyl-de-Groot C.A., Steenhoek A., Redekop W.K. The Drug Reimbursement Decision-Making System in Iran. Value in Health Regional Issues, 2014, vol. 3, pp. 174-181. DOI:10.1016/j.vhri.2014.04.010
12. Zaboli P., Hashemi-Meshkini A., Varmaghani M., Vazirian I., Zekri H.-S., Eslamitabar S., Kebriaeezadeh A. Pharmaceutical Laws and Regulations in Iran: An Overview. Journal of Research in Pharmacy Practice, 2016, vol. 5, no. 3, pp. 155-161. DOI:10.4103/2279-042X.185709
13. Davari M., Walley T., Haycox A. Pharmaceutical Policy and Market in Iran: Past Experiences and Future Challenges. Journal of Pharmaceutical Health Services Research, 2011, vol. 2, pp. 47-52. DOI:10.1111/j.1759- 8893.2011.00042.x
14. Electronic Commerce Law of the Islamic Republic of Iran. Available at: http://www.wipo.int/edocs/lexdocs/laws/ en/ir/ir008en.pdf (accessed 28.07.2017).
15. Iranian Pharma Market Promising for Int’l Firms. Financial Tribune, 12.02.2017. Available at: https://financialtribune.com/articles/economy-business-and-markets/59355/iranian-pharma-market-promising-for-int-l-firms (accessed 28.07.2017).
16. Foreign Investment Promotion and Protection Act (FIPPA). 34 p. Available at: http://en.csdiran.com/Content/pages/documents/fippa.pdf (accessed 28.07.2017).
17. Fallah F. Licensed Production Holds Key to Pharma Success. Financial Tribune, 19.06.2017. Available at: https://financialtribune.com/articles/economy-business-and-markets/66698/licensed-production-holds-key-to-pharma-success (accessed 28.07.2017).
18. Tannoury M., Attieh Z. The Influence of Emerging Markets on the Pharmaceutical Industry. Current Therapeutic Research, 2017. Available at: http://www.sciencedirect.com/science/article/pii/S0011393X16300984 (accessed 28.07.2017). DOI:10.1016/j.curtheres.2017.04.005
19. Novo Nordisk and the Food and Drug Administration of the Islamic Republic of Iran Sign Memorandum of Understanding to Build Manufacturing Facility in Iran. Novo Nordisk, 22.09.2015. Available at: https://www.novonordisk.com/bin/getPDF.1953487.pdf(accessed 28.07.2017).
20. Swiss Pharma Firm to Invest in Iran. Financial Tribune, 16.03.2016. Available at: https://financialtribune.com/articles/economy-business-and-markets/38425/swiss-pharma-firm-to-invest-in-iran (accessed 28.07.2017).
21. Pfeiffer C. Iran’s Pharmaceutical Ambitions are a Catch 22. Business Insider, 18.08.2016. Available at: http://www.businessinsider.com/iran-trying-to-get-attention-of-the-worlds-pharmaceutical-companies-2016-8 (accessed 28.07.2017).
22. 2016 Global Life Sciences Outlook. Moving Forward with Cautious Optimism. London, Deloitte, 2015. 28 p. Available at: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Life-Sciences-Health-Care/ gx-lshc-2016-life-sciences-outlook.pdf(accessed 28.07.2017).
23. Cheraghali A.M. Current Status of Biopharmaceuticals in Iran’s Pharmaceutical Market. Generics and Biosimilars Initiative Journal, 2013, vol. 2, no.1, pp. 26-29. DOI:10.5639/gabij.2013.0201.008
Registered in System SCIENCE INDEX
No comments