UAE pharma distributor sets up manufacturing facility in Dubiotech

The UAE-based pharmaceutical distributor Al Ittihad Drug Store (IDS) is setting up a new pharmaceutical manufacturing facility in Dubai which will produce different medicines.

To be located in Dubiotech, the manufacturing facility Pharmax will initially focus on chronic diseases such as metabolic, cardiovascular and gastro-intestinal. Ground breaking has already started and it’s expected to be complete by early 2016,” said Ahmad Tabari, Group CEO of IDS.

In the next phase of its distribution expansion, IDS is evaluating the possibility of establishing a new distribution channel that caters to salons and beauty centres. It currently covers pharmacies and hospitals across the UAE, supermarkets, convenient stores and non-conventional stores.

“Our long term strategy is to go upward the supply chain, manufacturing, rather than going downward the supply chain, retail, as many other distributors,” Tabari added.

The company has posted 28 per cent growth in total sales turnover in the first quarter of this year as compared to the first quarter of last year.

According to IMS figures, the total pharma market in 2014 was Dh7.4 billion with a growth of 12 per cent over 2013 (Dh6.6 billion). The average total market growth over the last 3 years was 13.5 per cent, with an expected sales to exceed Dh15 billion by 2020.

Tabari attributed high population growth rates, introduction of compulsory health insurance and continued growth of regional medical tourism as major factors driving the the medicine consumption in the country.

The introduction of mandatory health insurance, according to Tabari, in Abu Dhabi resulted in an immediate increase of over 40 per cent in the demand for  healthcare services.

He noted that the top three medicines consumed most in the UAE are for digestive and metabolic, asthmatic and nervous system diseases.

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