66 February 2013 www.bahrainthismonth.com The pharmaceutical business in Bahrain has been on shaky ground for a few years and is now on tenterhooks ever since reports of fake medicine being sold in Bahrain surfaced. Chairman and CEO of Gulf Pharmacy, Dr Khalid Al Awadhi, has been at the forefront of the debate, refuting the allegations on behalf of the 94 private pharmacies in Bahrain. Dr Khalid should know. His family has been in the pharmacy business since 1945 and he has chaired the Private Pharmacy Owners’ Society for the last eight years. “Our relationship with the health ministry is a sensitive one, where the ministry demands high-quality drugs at the lowest possible price. Unsubstantiated claims will do much harm to an already embattled sector,” he notes. In the course of the last decade, pharmacies in Bahrain have sometimes managed to defend their interests with landmark victories, such as getting a special consideration from the labour authorities owing to shortage of Bahraini pharmacists, but it has been a tough battle. “Most pharmacies in Bahrain are running on slim profits and there’s little incentive for further investment in the sector. The only way to expand is by opening up multiple branches, but the ministry has not issued new licences in the last 20 years. Players who want to expand can only do so by renting the license from others,” he observes. Medicine prices in Bahrain are regulated by the government but there are number of factors at play in the marketplace, such as the performance of the Euro, given most drugs are imported from European manufacturers. Saudi Arabia enjoys the lowest drug prices within the GCC owing to its sheer size, with a 28 million population, and which is boosted by an additional 10 million annually for Umrah and another 3 million for the Hajj. However, prices should average out across the Gulf when a uniform pricing policy for GCC is implemented by the end of 2013. “We had first petitioned the health ministry on this issue six years ago. Now, thanks to the current controversy, the policy is likely to be implemented this year. That should bring down prices by around 10 per cent in Bahrain,” Dr Khalid estimates. Consumers who want to reduce their spend on medicine would do well to educate themselves on the difference between branded and generic drugs. “Generic drugs are those manufactured after the patent life of a branded drug expires. Generic drugs have the same active ingredients and are equally effective, and they come at a fraction of the price of branded medicine,” says Dr Khalid. Simi Kamboj Recent allegations of counterfeit medicine being sold in the market can further derail the pharmaceutical business warns Dr Khalid Al Awadhi. businessinterview xxxxx Our relationship with the health ministry is a sensitive one, where the ministry demands highquality drugs at the lowest possible price. Unsubstantiated claims will do much harm to an already embattled sector Dr Khalid Al Awadhi The opening of new hospitals and healthcare establishments in Bahrain is a possible growth avenue that pharmacies can look forward to. “With the new establishments, we see the demand for medical equipment going up. That will see us expanding this division further,” he says. Already, medical equipment accounts for a lion’s share in Dr Khalid’s business — around 60 per cent — while the pharmaceutical division contributes 30 per cent. The consumer division holds some promise as demand for niche products such as nutritional supplements and cosmetics has picked up in recent times. Growth horizons Weathering the Storm
RkJQdWJsaXNoZXIy Mjk0MTkxMQ==