Egypt strengthens its pharmaceutical Industry through modernization

EGYPT—Mohamed El-Shimy, Minister of Public Enterprises, and Ali El-Ghamrawy, Chairperson of the Egyptian Drug Authority (EDA), have begun a comprehensive tour of key subsidiaries within the Holding Company for Pharmaceuticals, Chemicals, and Medical Supplies to strengthen Egypt’s pharmaceutical industry.

The visit included stops at Arabian Drug Company (ADCO), Memphis Pharmaceuticals, and Nile Pharmaceuticals, with a focus on recent facility upgrades designed to enhance production capacity, competitiveness, and compliance with Good Manufacturing Practice (GMP) standards.

This initiative is a crucial component of the ministry’s broader strategy to enhance Egypt’s pharmaceutical security while aligning with international quality standards.

By modernizing state-owned pharmaceutical companies, the government aims to strengthen their role in ensuring national drug security and meeting global industry standards.

 El-Shimy emphasized the ongoing efforts to upgrade production lines, integrate advanced technology, and optimize resources to increase efficiency and sustain local market supply.

This modernization drive is a cornerstone of Egypt’s industrial localization agenda, ensuring that high-quality, affordable medicines remain widely available to the public. 

In collaboration with the EDA, the ministry is intensifying efforts to meet GMP requirements.

El-Shimy praised the progress made in upgrading facilities and infrastructure, highlighting how these advancements enhance the competitiveness of Egyptian pharmaceutical firms and increase their export potential in global markets.

Expanding international reach remains a key pillar of the government’s strategy, with state-owned pharmaceutical companies actively increasing their presence across Africa, the Middle East, and beyond.

Human capital development is also a top priority, with the ministry focusing on employee training and skills enhancement.

By investing in workforce capabilities, improving motivation, and optimizing working conditions, the ministry aims to sustain long-term industry growth.

El-Ghamrawy emphasized the crucial role of state-owned pharmaceutical factories in Egypt’s healthcare system, commending their dedication to producing high-quality, effective medicines that meet international standards.

 He stressed that ongoing modernization efforts will further strengthen their competitive edge.

He emphasized the importance of ensuring continuous access to essential medicines, supporting Egypt’s healthcare sector, and enhancing pharmaceutical exports.

The EDA remains committed to fostering an investment-friendly environment for the pharmaceutical industry by supporting infrastructure development and regulatory improvements.

This approach aims to expand domestic pharmaceutical production, encourage innovation, and strengthen Egypt’s resilience against emerging healthcare challenges.

ADCO, established in 1964, is a prime example of this modernization effort. The company operates 13 production lines and has recently undergone a major modernization initiative, with over EGP 600 million (US$11.86 million) invested in facility upgrades.

ADCO exports to multiple Arab and African countries, including Sudan, Iraq, Yemen, the United Arab Emirates, Libya, Senegal, Nigeria, Mali, and Zimbabwe.

Between July 2024 and February 2025, the company recorded sales of EGP 777 million (US$15.36 million), representing a 39% increase compared to the same period last year, while profits reached EGP 103 million (US$ 2.03 million).

Memphis Pharmaceuticals, one of the oldest pharmaceutical firms in the Middle East, was established in 1940 and operates 15 production lines across various pharmaceutical forms.

The company recently modernized key production areas to comply with GMP standards.

 Memphis exports to Gulf countries, Africa, and Eastern Europe, achieving a remarkable 223% surge in profits and an 83% increase in revenues during the first half of the 2024-2025 fiscal year.

As Egypt continues to modernize its pharmaceutical sector, these initiatives reinforce the country’s commitment to expanding production, increasing exports, and ensuring the availability of high-quality medicines at competitive prices.

 This strategic push is part of a broader vision to position Egypt as a regional hub for pharmaceutical production, leveraging its strategic location and competitive advantages to attract investment and foster innovation.

In addition to these efforts, Egypt is also investing in infrastructure projects such as the establishment of a US$120 million pharmaceutical industrial hub in the Suez Canal Economic Zone.

This project aims to produce key raw materials for the pharmaceutical industry, further strengthening Egypt’s self-sufficiency in medicines and positioning the country as a key player in the global market.

 Moreover, the Egyptian Drug Authority plans to implement a nationwide tracking system for pharmaceuticals by the second half of 2025, aiming to enhance transparency and availability while combating hoarding and shortages.

 These initiatives collectively underscore Egypt’s determination to become a leading force in the pharmaceutical industry, both domestically and internationally.

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