Investor Presentation Q1 2018 Audited Results
III Key Investment Highlights
2 Attractive Industry Dynamics (I/II)
A highly defensive sector with significant room for continued growth
Health Expenditure CAGR 2013-2017
Egypt's healthcare market is the fastest growing in the region
driven by significant growth in the pharmaceuticals market
Pharmaceutical Sales | EGP bn
Given the under-penetration of healthcare insurance, pharma
sales are mainly driven by out-of-pocket expenditure as consumers
find self-medication to be the cheapest form of treatment
12%
10%
9%
8%
8%
5%
5%
5%
22
22
19
3%
Regulated Price
8%
Industry Regulated Margins
CAGR 17%
Total Number of Pharmacies | '000
60
60
57
56
56
56
50
2012
2013
2014
2015
2016
2017e
41
32
28
25
Total Pharmacists | 2016 '000
212
2011
2012 2013 2014
2015
2016 2017
Market Price Evolution
25
37%
20%
Distributors operate on a
fixed margin set out by the
Ministry of Health (MOH),
and is marked down from
the regulated price of the
SKU
18
15
14
13
9%
10%
20%
6%
Which significantly mitigates
any risks related to
2013
2014
2015
2016
2017
bargaining power of
suppliers/clients
Distributors
Retailers
ibnsinapharma
Source: IMS Health, BMI, WHO
Average price per unit
Growth rate %
2017
2016
23
10
3
12
7
Increase in price of medicine that cost less than EGP
30 by 20% due to increase in production costs
Increase in distribution margin from 7% to 8.1% for
non-essential locally manufactured products
Retail price increase of 30-50% for over 3k SKUs
Price increase of c.50% for MoH's tenders
IN
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