PHARMA MARKET REPORTUGANADAPHARMEXCIL Hyderabad

Contents
DEMOGRAPHY......................................................................................................................................... 1Introduction ............................................................................................................................................ 2
Latest Updates ........................................................................................................................................ 3Strengths ................................................................................................................................................. 3
Weaknesses ............................................................................................................................................ 3
Opportunities.......................................................................................................................................... 3Market..................................................................................................................................................... 3
Regulations: ............................................................................................................................................ 4
Epidemiology........................................................................................................................................... 4
Statistics .................................................................................................................................................. 5
India’s Exports to Uganda ................................................................................................................... 5
Uganda’s Imports of Formulations ..................................................................................................... 5

DEMOGRAPHY

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Parameter
RegionAfricaCapitalKampalaCountry
Population

Population growth rate (%)

GDP (purchasing power parity)
GDP - real growth rate (%)

Uganda40,853,749 (July 2018 est.)
3.18%(July 2018 est)89.19 $ Billion(2017 est)
4.8%(2017 est)

GDP - per capita (PPP)USD

2,400 $(2017 est)

Population below poverty line

21.4%(2017 est)

Exchange rates

Age structure (%)

0-14 Years-47.84%

15-24 years 21.04%

25-54years and over: 26.52%
55-64 years 2.64%
65 & above 1.96%

Source: CIA World Fact Book updated to july 2018( On 22nd Dec 2018)

Introduction
Fundamentalbarriers in Uganda's pharmaceutical and healthcare sector will limit the opportunities
to multinational drugmakers. Low affordability levels will promote low-cost generic drugs, while thegovernment plans to localise drug production to boost medicine sustainability. While the market has
brighterlong-term prospects,multinationaldrugmaker appetite willremain subdued despite thepositive economicgrowth forecastover the coming years.
Market size was $ 414 Million in 2017. Percapita consumption of Medicines is put at $ 9.6.

Latest Updates
 In September 2018, the director general of external security organisation in Uganda
announced that an Indian company will invest USD10mn towards a pharmaceuticalmanufacturing facility in Uganda.
 In September 2018,Health officials in the Democratic Republic of the Congoconfirmed a caseof Ebola virus on the Ugandan border.
 In August 2018, China donated hospital supplies and medicines worth USD70,000 to theUgandan Ministry of Health, following the success of previous Chinese donations to theChina-Uganda Friendship Hospital.

Strengths
 The government's interest in developing the pharmaceutical sector.
 Further discoveries in the oil and gas industry arelikely - boosting economic prosperity andgovernment financingoptions for industry sectors.

Weaknesses
Acute shortage of Pharmacies & HospitalsOpportunities
 Progress has been made towards establishing the East African Medicines and Food Safety
Commission, which would improve drug registration processes.
 Large and increasing burden of disease suggests a significant unmet demand forpharmaceuticals.
 Protection of local pharmaceutical manufacturers from foreign competition is expected toincrease.

MarketUganda will remain a small, underfunded, and generic-dominated pharmaceutical industry. A
combination of low per capita spending in a youth-dominated, highly ruralised population, will limit
opportunities for innovative drugmakers looking to launch patented medicines in Uganda.
Opportunities for foreign firms will be largely indirect, with potential licensing agreements with local
players that are able to advance their manufacturing capabilities over the coming years.

In August 2018, Uganda-basedCipla Quality Chemicals launchedan IPOto float 657mn shares.
In 2017, pharmaceutical expenditure in Uganda reached a value of USD414mn. 76% of this value ismet by private sector(out of Pocket). In 2018, estimates are that market may reach USD434mn andby 2022, the market will be valued at USD519mn, experiencing a fiveyear CAGR of 4.7%. In 2017, percapita drug expenditure was USD10- which is extremely low by international standards. Additionally,in 2017, pharmaceutical spending is estimated to have accounted for 21.9% of total healthcare
expenditure. Nevertheless, in comparison with many other African markets, Uganda offers greatercommercial promise and a more stable overall business environment.
Due to low purchasing power, generic drugs comprise the majority of Uganda's pharmaceuticalmarket. Patented drugs comprise a small market share of medicines, as low per-capita drug
expenditure continues to limit the capacity of most of the population to purchase higher-priced
patented drugs. Multinational pharmaceutical companies may try to increase the usage of patented
products by employing tiered pricing.
Self-medication is prevalent in Uganda, making the over-the-counter (OTC) drug market an attractive
prospect. Many Ugandans lack access to health facilities owing to financial reasons, or because ofsparse healthcare infrastructure in rural areas. The division between prescription and OTC drugs isblurred by the prevalence of roadside kiosks selling malaria drugs and antibiotics, highlighted by arapid growth in the number of pharmacies in both rural and urban areas.
There are challenges when it comes to the local production of medicines (including poor
infrastructure). Uganda is a part of Common Market for Eastern and Southern Africa (COMESA), an
increasingly influential 19-member economic bloc covering a large swathe of Africa, including SouthAfrica. Membership of COMESA should bolster the country's attractiveness to companies looking tomanufacture products in the country.

Regulations:Pharmaceutical regulation in Uganda is governed by the Pharmacy and Drugs Act of 1970, as well as
by the 1993 Act of Parliament that set up the National Drug Authority (NDA). As is the case in other
African nations, significant issues exist in Uganda's intellectual property (IP) environment - with amajor problem being the enforcement of laws.
The Drug Inspectorate Services Department of the NDA is responsible for the inspection ofpharmaceutical manufacturers (local and foreign) and distributors (pharmacies, chemist shops,
health units, and hospital dispensaries). The purpose of inspections is to ensure all production
processes comply with current Good Manufacturing Practices (GMP), and to provide an opportunity
to offer free GMP advice to the local pharmaceutical industry.
The Drug Assessment and Registration Department of the NDA's role is the assessment, registrationand maintenance of a register of all medicines in Uganda.
The National Drug Quality Control Laboratoryof the NDA assesses the quality of both local andimported medicines.
The role of the Drug Information Department of the NDA is the provision of unbiased information
on medicines in Uganda to ensure that the country's public has access to accurate, reliable, objective
and non-promotional information on medicines and health supplies.

Epidemiology
Uganda’s disease profile is similar to other less developed African countries, with communicablediseases accounting for roughly 67% of the total burden. However, economic growth will boost
lifestyle diseases, increasing the demand for medicines for chronic diseases.

Uganda's communicable disease burden is dominated by infectious and parasitic diseases. Malaria isconsidered as the major cause of deaths in the country.
An increasing number of Ugandan patients are experiencing multi-drug resistant TB and so theUgandan government is building a national referral TB laboratory at Butabika in Luzira to address
this, according to allAfrica.
Cervical cancer is also an issue in Uganda. Annual deaths are expected to increase to 416,000 by
2035, with more than 95% of these deaths occurring in women living in low-income countries,
according to the International Agency for Research on Cancer. However, national vaccination
campaigns in Uganda have attempted to address this.

Statistics
India’s Exports to Uganda
India’s exports of Pharmaceuticals to UGANDA $ Million
Category
2015-16 2016-17 2017-18 GR%
Contbn to Region
BULK DRUGS AND DRUG INTERMEDIATES
13.73
12.63
9.34 -26.05
2.38
DRUG FORMULATIONS AND
BIOLOGICALS
139.09126.32138.62
9.74
5.35
AYUSH
1.19
1.16
1.71 47.77
9.62
Surgicals
0.94
1.24
1.59 27.97
3.28
Vaccines
14.29
12.22
4.56 -62.69
1.54
Total
169.24153.57155.82
1.47
4.66
Finished dosage forms constitute most of Pharma exports (over 80%). 4.66% of Pharma exports ofAfrica are to Uganda.
India's exports to Uganada During April-October $ Mn
Category
Fy-18
Fy-19
Change%change in Revenue
Bulk Drugs & Drug Intermediates
4.64
7.83
68.74
3.19
Drug formulations & Biologicals
64.66
80.10
23.87
15.43
Ayush
0.88
1.25
42.20
0.37
surgicals
1.06
2.00
88.99
0.94
Vaccines
2.31
2.25
-2.86
-0.07
Total
73.56
93.44
27.02
19.87

Uganda’s Imports of Formulations

Top Ten Formulation Importing Partners of Uganda $ Million

Rank12345678910

Country
India
Belgium
China
Kenya
Denmark
NetherlandsUnited Kingdom
Rep. of Korea
South Africa
Switzerland
World

2015
174.38
2.72
18.51
22.64
20.37
6.09
3.00
0.22
7.69
3.06
370.852016
158.84
32.28
17.95
19.84
18.38
10.75
4.32
1.71
10.13
5.63
316.482017 Gr%
Share%
141.05-11.2051.53
27.89-13.60
10.19
22.66
26.29
8.28
19.63
-1.05
7.17
11.83
-35.664.32
9.09-15.45
3.32
7.59
75.77
2.77
4.78
180.22
1.75
4.16-58.931.52
3.51-37.691.28
273.73-13.51100.00