JORDANIAN DRUG INDUSTRY BOOSTS INTERNATIONAL PROFILE

Jordanian drug manufacturers are looking to boost their global presence, in the wake of the country's US free trade agreement and WTO accession in 2000. The country is home to several large generic drug manufacturers, and pharmaceuticals are already Jordan's second-largest export industry. The government somewhat conservatively values foreign drug sales at US$226mn per year.

Recent years have been tough -- the local drug market shrank in 2002 -- but Jordanian drug firms are now bullish on prospects for the external sector. The latest company to attempt an expansion is Al-Hikma, which hopes that its forthcoming London IPO will raise proceeds of GBP70mn (US$123.07mn). The company has 40 US FDA-approved products, and reported sales of US$214mn for 2004, with profit totalling US$37.5mn. The home market accounts for only a fraction of the company's annual turnover.

Al-Hikma's recent activity illustrates the growing internationalisation of Jordan's drug sector, with the company recently concluding a product deal with a South Korean firm. Al-Hikma is also looking to expand in key generic markets such as Eastern Europe and Egypt, as cash-strapped governments and consumers increasingly opt for low-cost, off-patent former blockbusters. Nevertheless, competition is likely to remain tough in high-growth markets where large local manufacturers and multinationals figure strongly.