Boston, MA -- (SBWIRE) -- 06/04/2014 -- This quarter has seen the extension of GlaxoSmithKline's bribery allegation investigations. These now span the Gulf Levant, bringing Jordan's pharmaceutical industry into the spotlight. We do not believe Jordan will attract interest from innovative drugmakers in 2014 and project low single-digit growth in the market. This growth forecast is based on our expectations for weak government spending, the JFDA's recent medicine price cuts and weak pharmaceutical import growth in 2013.

Headline Expenditure Projections

- Pharmaceuticals: JOD641mn (USD905mn) in 2013 to JOD664mn (USD937mn) in 2014; +3.6% in local currency terms and +3.5% in US dollar terms. Forecast revised slightly downwards due to macroeconomic factors.
- Healthcare: JOD2.08bn (USD2.94bn) in 2013 to JOD2.27bn (USD3.21bn) in 2014; +9.2% in local currency terms and +9.1% in US dollar terms. Forecast revised slightly downwards due to macroeconomic factors.

Risk/Reward Rating

In our Q314 Risk/Reward Ratings matrix, Jordan maintains its position of 10th out of 30 markets surveyed in the Middle East and Africa (MEA) region, despite receiving a lower score of 48.6 out of 100. Generally speaking, although Jordan offers a relatively favourable investment environment in terms of Risks, its small population size (of around seven million) limits potential pharmaceutical market growth.

View Full Report Details and Table of Contents

Key Trends And Developments

April 2014

- GlaxoSmithKline (GSK) reported in a statement on April 23 that it is investigating allegations that is offered bribes, free samples and travel benefits to doctors and officials in Jordan and Lebanon to encourage them to use its medicines. GSK is present in the Jordanian market through imports, which are distributed by domestic companies. These allegations follow earlier claims of corruption in China, Poland and Iraq.
- Local drugmaker Hikma Pharmaceuticals received a close-out letter from the FDA that lifted the warning letter received in February 2012 regarding its Eatontown, New Jersey facility, which provides oral products for the US market. Hikma noted that the close-out letter followed the FDA's re-inspection of the facility in February 2014, adding that this successfully resolves all issues raised by the FDA in its original warning letter and subsequent communications.
- Hikma's 2013 revenue increased 23% year-on-year (y-o-y) to USD1.36mn, while gross profit increased 52% y-o-y to USD764mn during the period. The company's branded drug segment was the largest, accounting for 41% of total sales in 2013, followed closely by injectables with a 39% share of total sales. Hikma reported that its generic drug sales growth surged by 158%, to USD268mn, reflecting strong doxycycline sales, increasing its share of total sales from 9% in 2012 to 20% in 2013. We note that there has been a convergence in the Hikma Group's MENA and US regional revenues between 2012 and 2013.

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Healthcare research reports at Fast Market Research

You may also be interested in these related reports:

- Thailand Pharmaceuticals & Healthcare Report Q3 2014
- Nigeria Pharmaceuticals & Healthcare Report Q3 2014
- Australia Pharmaceuticals & Healthcare Report Q3 2014
- Central America Pharmaceuticals & Healthcare Report Q3 2014
- Mexico Pharmaceuticals & Healthcare Report Q3 2014
- Croatia Pharmaceuticals & Healthcare Report Q3 2014
- Latvia Pharmaceuticals & Healthcare Report Q3 2014
- Algeria Pharmaceuticals & Healthcare Report Q3 2014
- Kenya Pharmaceuticals & Healthcare Report Q3 2014
- Pakistan Pharmaceuticals & Healthcare Report Q3 2014