With around 9% of the population suffering from diabetes, Iran represents a huge market for insulin.
In fact, over the last few years, the number of diabetic patients has been increasing at a compound annual growth rate of around 15-16%, wrote European Pharmaceutical Manufacturer Magazine.
Presently, around 65-70% of the insulin requirements are imported into Iran, so it makes absolute sense for manufacturers to explore setting local manufacturing facilities to cater to this huge market.
Foreign entities should explore tieups with local manufacturing facilities and groups to gain access to the local distribution network.
The government is also providing tax exemptions for setting up pharma units that can cater to the local demand as well as focus on export markets, as Iran is pushing to be a major player in the regional market.
Insulin currently represents only 2.7% of the total pharma expenditure in Iran. The price advantage of domestic production vis-a-vis imports of insulin is almost 2.5 times, and this is also another reason for foreign companies to explore setting up local manufacturing facilities.
The proposed Novo Nordisk plant, which is likely to commence production around 2020, will target the local population first, to then target exports to cater to the regional demand.
The Danish pharmaceutical giant said last week, it would build a €70 million ($78 million) manufacturing plant in Iran. It already has a subsidiary in the country selling insulin and employing 130 people there since 2005.
