With around 9% of the population suffering from diabetes, Iran represents a big market for insulin.
In fact, over the last few years the number of diabetic patients has increased at a CAGR or compound annual growth rate of 15-16%, epmmagazine.com reported.
Presently, around 65-70% of the insulin requirements are imported, “so it makes absolute sense for manufacturers to explore setting up local production facilities to cater to this huge market,” says Y. Shashidhar, managing director, (South Asia & MENA) of Frost & Sullivan, a consulting firm.
He was referring to how local production of insulin by the Danish multinational pharmaceutical company Novo Nordisk’s new plant in Iran, could impact the pharmaceutical market.
“Foreign entities should in fact explore tie ups with local manufacturing facilities and groups in order to gain access to the local distribution network.”
The government is also providing tax exemption 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, he noted.
Insulin currently represents only 2.7% of the total pharma expenditure in Iran. The comparative advantage (in price terms) 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, Shashidhar said.
The proposed Novo Nordisk plant - which is likely to commence production around 2020 - will target the local population first, before catering to regional demand.
