The Egyptian pharmaceuticals industry draws support from the country’s large population, favorable demographics, and high morbidity rates. But drugmakers are suffering from high cost of operations as a considerable part of their inputs are imported, exposing them to fluctuation in global prices and FX risk. Since the pharmaceuticals industry is still subject to price control by the government, drugmakers always find their margins at risk, while vulnerable to loss-making products they sometimes must manufacture. In this note, we initiate coverage on the industry.
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