The Algerian pharmaceutical industry has made a qualitative progress during the recent years thanks to the support of the State, which has banned the importation of locally produced drugs and to the encouragement of private investment. (Decree of 5 Joumada Ethania 1432 corresponding to May 8, 2011 on the ban on the import of pharmaceutical products and medical devices intended for human medicine manufactured in Algeria J.o).
The national pharmaceutical sector has the assets that allow it to constitute a model of successful growth and diversification within the Algerian economy.
Algeria produces and covers more than 50% of these drug needs while hoping to achieve the objectives of covering 70% of the demand for drugs through national production and penetrating foreign markets.
The Algerian pharmaceutical market is one of the main markets in the Africa-Middle East (MENA) region thanks to vigorous growth sustained for nearly 15 years, which has reached 8% per year on average each year.
Algeria has already a substantial industrial infrastructure.
The creation of a full ministerial department for the pharmaceutical industry indicates the importance of promoting this strategic sector, which generates wealth. This decision is a testament to the particular interest that the highest authorities in our country have in this industry.
This new ministry oversees the regulatory aspects governing the national pharmaceutical industry to ensure accessibility, availability, registration, import and price control of drugs.
The creation of Pharmaceutical Industry Ministry
The pharmaceutical industry policy in Algeria
The Ministry of Pharmaceutical Industry has implemented a more operational investment policy in the pharmaceutical sector based on:
- Assistance in commercial networks acquisition intended to support the foreign trade of Algerian producers;
- The creation of hubs for production intended for export as part of the localization of innovative products with high added value.
In addition to these measures, the existing national production tool will be safeguarded by better control of the production tool and optimization of the business model.
Algeria wants to achieve 70% coverage of national needs by local production by the end of 2021.For this purpose, quantitative restriction measures on imports have been applied to reduce the import bill on the one hand and to protect national production on the other hand.
Algeria has more than 100 operators and producers of medicines.
The development of the local pharmaceutical industry is a priority of the Algerian State’s policy through financial and tax incentives for the profits of producers wishing to invest in local production for the promotion of generic drugs, and strengthening of regulations in favor of generic drug.
The local pharmaceutical industry Encouragement
The generic drug industry promotion
With the ambition of reducing the import bill and creating a dynamic local industry, the state has oriented itself towards a policy that aims to promote and generalize generic drugs with the aim of boosting local production
The choice of this orientation towards the promotion of generic drug can be considered effective because:
Algeria has benefited from the transformation of the global pharmaceutical industry where several brand name drugs from large pharmaceutical companies have fallen into the public domain, Algeria like all developing countries has opted for the production of generics.
Algerian Investment Promotion Agency
The Algerian Investment Promotion Agency –AAPI– is a public institution of an administrative nature, endowed with legal personality and financial autonomy.