ibnsina pharma

Credit Proposal

Prepaid by
Sally Mossad
Mohamed Hassan
Mohamed Fathy

Under supervision
Dr / Sherif Salama
Contents

Contents.................................................................................................... 1
Overview of the health system in Egypt......................................................2
Overview of the elNozha international hospital.......Error! Bookmark not
defined.
PESTEL Analysis........................................................................................... 9
Porter's Five Forces analysis.....................................................................14
Characteristics...............................................................................................
.................................................................................................................. 15
SWOT Analysis........................................................................................... 16
Sources......................................................Error! Bookmark not defined.

1
 Company overview; (Company brief, Operating Cycle, Management /
Ownership)

Company brief

Ibn Sina Pharma was established in 2001, and it is a leading Egyptian company
in the field of pharmaceutical distribution and ranks second in the Egyptian
market with a market share of more than 18.8% until September 2017. The
company is achieving the fastest growth rates in that promising market, as it
specializes in distributing products of more than 350 companies One of the
most prominent names in the pharmaceutical industry and personal care
products on the local and international arena, and its clients list includes more
than 35,000 clients from wholesalers and retailers, pharmacies, public and
private hospitals and health units spread across all Egyptian governorates.

Ibn Sina Pharma is unique in providing a variety of services to a wide range of

clients, including telemarketing services, receiving / delivering orders on the
same day, as well as developing and implementing innovative commercial
activities and campaigns, as well as warehouse management services and
logistical support networks for a group of clients.

Ibn Sina Pharma has a fleet of trucks that includes about 600 commercial
trucks to cover all Egyptian governorates and quarters through branches and
distribution centers distributed over 55 locations, including storage warehouses,
distribution centers and others.

Operating Cycle,

Distribution
Ibn Sina Pharma specializes in the field of distributing medicines and personal
care products, as it distributes the products of hundreds of suppliers and
companies specialized in the pharmaceutical industry to serve pharmacies and

2
hospitals spread across the country through a fleet of trucks that includes more
than 600 commercial trucks. The company provides its services through a
network of branches and distribution centers spread across 55 locations in
various Egyptian cities, including storage warehouses, distribution centers, and
others, which ensures the quality of storage and delivery of pharmaceutical
products that are sensitive to temperature. The company is unique in providing
services to receive orders and deliver them to customers, and it is the first
company to introduce a telephone sales model in the field of drug distribution
in Egypt.
Warehousing and logistical support
Ibn Sina Pharma is unique with its tremendous experience in the fields of
medicine and personal care products distribution, as it owns a group of
warehouses equipped according to the latest technology for storing and
distributing medicine, and has an advanced system for managing supply and
supply activities with the use of the latest temperature control systems that
match the storage standards A distribution approved by the World Health
Organization (WHO). Consequently, the company offers its suppliers to its
customers a distinguished package of warehousing, logistical support and
distribution services in order to effectively contribute to achieving their
operational goals.
Import and packing
Ibn Sina Pharma has succeeded in growing its business over the past years to
become one of the most prominent importers of nutritional supplements and
medical devices from major international companies and institutions. The
company is also working to sign new partnership agreements with the most
prominent suppliers around the world in an effort to meet the growing demand
in the Egyptian medical and pharmaceutical market, as well as enrich the lives
of customers by making sure that they have access to safe and reliable
pharmaceutical products from the most prominent names in the global
pharmaceutical industry.

3
Commercial support
Ibn Sina Pharma is proud to provide the best level of customer service through
a "CRM" program specialized in customer relationship management, in an
effort to meet all their needs and respond to any inquiries or complaints while
ensuring that each customer receives the highest standards of service. The
company also employs the expertise of its best-in-class sales team to provide
complementary support services to its supply partners, including the creation
and launch of innovative promotions to attract new customers, as well as
assisting in launching and promoting new products. On the other hand, the
marketing team conducts analytical studies periodically to measure the
performance of the pharmaceutical market in Egypt and studies the reports
issued by the International Foundation for Drug Information and Consultation,
and conducts continuous internal analyzes, as well as opinion polls throughout
the Republic with the aim of collecting data that contribute to developing plans.
The work necessary to meet the needs of customers and suppliers and achieve
their goals and aspirations.
Customers
Ibn Sina Pharma distributes medicines and personal care products to more than
35 thousand customers from wholesalers and retailers, chains of pharmacies
and public and private hospitals, in addition to its active participation in tenders
for the supply of medicines and medical preparations. The company relies on a
highly efficient system for managing the supply chain system to deliver more
than 375,000 orders per month.
Suppliers
The company specializes in distributing a huge range of products from more
than 325 companies from the most prominent names in the pharmaceutical
industry and personal care products on the domestic and international scene.
The work team is coordinating with supply partners in all stages of preparing
and developing commercial proposals, including following up planning,
design, distribution, analysis studies and subsequent follow-up. The company is
also working to help suppliers achieve their strategic goals by reaching targeted

4
sales rates, as well as enhancing the market position of the products it
distributes.

Management / Ownership

Management
Mohamed Mohsen Mohamed Mahjoob Chairman and Managing Director
Mahmoud Mohamed Abdel Gawad Mahmoud Ahmed Managing Director
Omar Mohamed Abdel Gawad Mahmoud Ahmed Managing Director
Amr Mohamed Abdel Rahim Abdullah, board member
Ahmed Fathy Abdel Rahman Al-Nawawi, Member of the Board of Directors
Lindsay Moffat Forbes, Board Member, represents the European Bank for
Reconstruction
Abdel Rahim Fahmy Omar, Board Member Represents the Faisal Islamic Bank
of Egypt
Hani Hassanein Mohamed Badr is a board member representing the Faisal
Islamic Bank of Egypt
Muhammad Abbas Muhammad Abbas Zaky Board Member
Ahmed Mohamed Abdel-Gawad Mahmoud Ahmed, board member
Abdul Aziz Ali Abdel Aziz, Member of the Board of Directors
Muhammad Abbas Muhammad Abbas Zaky Board Member
Mohamed Mohamed Mohsen Mohamed Mahjoub Khalaf, Board Member

Ownership

Faisal Islamic Bank of Egypt (12.58%)

European Bank for Reconstruction (8.70%)
Omar Mohamed Abdel Gawad Mahmoud Ahmed (5.00%)
Muhammad Abbas Muhammad Abbas Zaki (4.70%)
Muhammad Mohsen Muhammad Mahjoub (3.15%)
Muhammad Muhammad Muhsin Muhammad Mahjoub Khalaf (2.38%)
Abdul Aziz Ali Abdel Aziz (0.27%)

5
Mahmoud Mohamed Abdel-Gawad Mahmoud Ahmed (NA)
Ahmed Mohamed Abdel-Gawad Mahmoud Ahmed (NA)

Industry Analysis

Overview of the Pharmaceutical sector in Egypt

Introduction
The pharmaceutical sector is one of the most liberal sectors that is gaining a special
importance among the rest Manufacturing industries for several reasons include:

- It is one of the essential industries affecting human health and is closely related to a
sector Healthcare 1.
- It is one of the huge manufacturing industries, with high added value and a profit rate
Different.
- Medicines are a commodity so inflexible in demand that demand for it continues even
as its price increases Being a necessary commodity, the lack of which affects human
health, even if it has some Sometimes alternatives, but the demand for them remains
inelastic, but according to the cycle of this elasticity The demand for it is derived
from the high incidence of diseases, especially chronic ones.
- Being an inelastic commodity so that it is not affected much by periods of recession
or recession. Especially with the high prevalence of diseases. It is also not very
affected by the imposition of measures Precautionary such as prohibition and others;
As pharmacies and clinics are always excluded from this Actions.
- The pharmaceutical industry is also characterized by inelastic supply; As it is a
research-intensive industry And development, especially in Egypt, where scientific
research activity is less and active substances are imported From outside.
- The nature of the pharmaceutical market varies; Where it is predominantly
monopolistic and controlling nature
- Few companies are on the largest proportions of the market, especially in Egypt
where these are
- Control is in the hands of multinational companies.

6
 Value chain of pharmaceutical products

End-user access of the drug -3

Point-of-sale distribution -2

Pharmaceutical
sector -1
pThe patient's
.medication is in good
Appropriate in an
Transfer of medicine and the appropriate and timely
stages of dealing with its exit .manner
From the initial research and development
from manufacturer to the point This step can include any
phase, passing through of sale, whether they a number of
.A start Retail pharmacies, hospitals or Additional activities, such
by obtaining official approval for the saleThe
Doctors. of complexity of this as internal verification of
the drug in .trip will vary Potential interactions,
market, and reach the final marketing stage.
Depending on the advice and treatment
,And, of course manufacturer's location, the Claims
The steps and requirements vary with
degree Most pharmacists (98%)
different types of medicines The need to import medicine,
** Government sector
Manufacturers and producing countries
the nature of the conditions
The average population
Egypt has 350 facilities for the manufacture
Special delivery of medicine, of pharmacists
,of pharmaceutical products geographical location
*** )breeze/doctor( 1844
It employs about 6.84 thousand For
workers.
the end user
.The government owns it And the rate of
There are 1,383 drug stores pharmacists / 10
.Only 3% and 97% privately owned
.and about 75 thousand of
This phase includes all the details related to including 1,000
pharmacies, Population ***4.5
the industry 671 private pharmacies Pharmacist
:The medicine from
Stages of the drug industry .1
Types of medicines .2
Categories of pharmaceutical companies .3

Central Organ for Public Mobilization and *

.Statistics, Census of Economic Facilities 2018
Central Authority for Public Mobilization and*
Statistics, Annual Health Services Statistics
Bulletin for 2018
In 1/7/2018 Estimated population of 9,714,368

7
Distribution of medicine in Egypt
Medicines are obtained from local factories and companies or through agents of
foreign companies from abroad. In Egypt there are 9 approved drug distribution
companies working in the field of medicine distribution and there are subsidiary
distribution companies in addition to drug stores, which reached more than 130 stores
in Cairo as well as more From 600 other stores in the governorates and all these
outlets sell to different pharmacies

Market share

An increase in the market share of Ibn Sina Pharma in the local market by 4
.percentage points, over the next five years, to reach 25% by 2024

Demand side
The average Egyptian family spends 9.2% of their income annually on healthcare at
an average of 2,416 EGP. This amount is allocated between government focused and
private sector spending, and is spent on medical equipment, out-patient clinics, and
hospitalization services. Urban governorates are found to have the highest spending
rates at an average of 33,718 EGP annually

Supply side
The Egyptian pharmaceutical sector is the largest in the Middle East in accordance to
growth capacity and expansion. According to the General Authority of Foreign
Investment (GAFI), investments in Egypt's pharmaceutical industry currently stand at
26 BN EGP, with the industry employing a total of 39,500 professional staff and
.production workers

The most important distributors of the drug in Egypt

 Pharmacies

 Drug stores

 Public sector hospitals

 Private sector hospitals

 Agents

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 The most important factors affecting competition in this market

 Price.
 Quality.
 Innovative packaging designs.
 Publicity and advertising.
 Discount rates that companies give to wholesalers
and pharmacies

 Most recent events in the Market and the Company that

may affect the credit proposal &/or projections
Government program and strategic vision for the
pharmaceutical industry in Egypt

The 2030 Sustainable Development Strategy aims to develop

the industrial sector, especially the human medicines and
pharmaceutical chemicals industry, through:
 Investigate universal health coverage for all Egyptians
 Issuing the drug authority law
 Deepening the local industry in order to replace
imports and increase exports
 Expanding specialized industrial complexes
 Activating the local product law Technology transfer
and innovation
 Developing small and medium industries and creating
job opportunities.
 Encouraging Egyptian exports and reducing the import
bill by relying on the local component and raising its
rate to avoid the effect of liberalizing the exchange rate
on the high cost of the foreign component.

9
Development of Pharmaceutical sector
Sales

PESTEL Analysis

The pharmaceutical industry has been around for millennia, but it’s only within the
last century that we’ve been able to understand and treat the majority of health
ailments. While the pharmaceutical industry is extremely profitable for those
involved, it’s future outlook is mixed. Despite an aging population and growing
obesity rates, the industry is held back by pricing pressures from governments and a
new trend towards being healthy. In this PESTLE analysis, we’ll look at the Political,
Economic, Sociocultural, Technological, Legal, and Environmental factors that will
.decide this industry’s future

Political

:Here are the Political factors affecting the pharmaceutical industry

Regulatory Frameworks

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In almost every country, the pharmaceutical industry has a strict regulatory
framework to follow. This regulatory framework, consisting of numerous
governmental agencies and various drug-related laws, lays out crucial rules for
operating within the pharmaceutical industry. In most cases, this relates to the
health and safety of medications. It may also affect how medications can be
advertised and where they can be sold. In any case, this complex regulatory
framework is a serious barrier to entry for new competitors in the pharmaceutical
industry, meaning that established drug manufacturers and distributors have it a lot
.easier

Pricing Pressure

In the United States, pharmaceutical companies are free to price medications however
they want. In recent years, this has caused significant outrage, as many drug
manufacturers choose to sell their drugs at hugely marked-up prices. When these
drugs — such as diabetes treatments — are crucial to another human being’s survival,
it seems incredibly unethical to price them so highly. As such, governments are
starting to take interest in limiting the prices drugs can be sold at. Ultimately, this
would mean that pharmaceutical companies are left with less profit after all things are
.considered

Economic

:Here are the Economic factors affecting the pharmaceutical industry

Growing Healthcare Spend

Overall, there’s an upward trend in household healthcare spending. That’s to say that
the average individual spends more and more money on healthcare — including
medication — every year. Regardless of the reasons for this, it can only mean greater
.revenue for the pharmaceutical industry

Sociocultural

:Here are the Sociocultural factors affecting the pharmaceutical industry

Aging Population

As healthcare around the world has rapidly improved, we now face the issue of an
aging population. This means that the average person is now older than ever before.
Older individuals typically have more serious health problems — and more of them
— than younger individuals. Thus, the aging population means we have more health

11
issues to tackle. This creates greater demand for pharmaceutical products, and will
.lead to more revenue for the pharmaceutical industry

Growing Obesity Rates

While the rates of diseases of poverty — such as malaria or AIDS — have severely
declined in recent years, diseases of affluence are ever more prevalent. While not a
“disease” per se, obesity is a serious health issue in developed countries. Worst of all,
the rates of obesity are quickly rising. There are a number of secondary health issues
associated with obesity, and many of these require pharmaceutical treatment. As a
result, growing obesity rates are actually driving more sales of some drugs, thereby
.increasing the overall revenue of the pharmaceutical industry

Health Trend

Despite an aging population and growing rates of obesity, there’s a trend towards
being more health conscious, especially in developed countries. Among young and
middle-aged adults, it’s becoming fashionable to lead a healthy life. From partaking in
regular exercise to eating well and even practicing mindfulness, healthy choices are
definitely hot right now. If this trend continues, and influences more people to lead
healthier lifestyles, it might reduce the need for pharmaceutical products in the long
.term

Technological

:Here are the Technological factors affecting the pharmaceutical industry

Growing Biotechnology Industry

Biotechnology is the study of using living organisms to improve our lives, in areas
such as agriculture, food science, and medicine. In particular, it’s the role of
biotechnology in medicine that might impact the pharmaceutical industry. As new
medications are created from various biological sources, pharmaceutical companies
might have a wider range of drugs to produce and distribute, generating additional
revenue. On the other hand, if biotechnology is used to produce healthier food
options, it might take away from the pharmaceutical industry. For instance, various
meat alternatives are being developed from plant sources; since meat is believed to be
a major source of health problems, this might reduce the need for pharmaceutical
.treatment of those problems

Direct Advertising

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Businesses in all industries have a unique opportunity to market directly to their
customers nowadays. This is made possible by technology; in particular, it’s the
sophisticated advertisement systems that allow brands to interact with users on their
favorite portals that can greatly improve advertising potential. By advertising direct to
consumers, businesses will be able to lower their customer acquisition costs and gain
more customers as a result. This should help the industry grow, as clever marketing
.professionals attract new individuals to purchasing various medications

Legal

We couldn’t find any significant Legal factors affecting the pharmaceutical industry.
However, as always, there’s some overlap between the Political and Legal categories
in PESTLE analysis. As such, you may wish to interpret the regulatory frameworks of
.the pharmaceutical industry as a Legal matter, and not a Political one

The Institutional Organization Law for Drugs, Supplies, Preparations, and Medical
Devices, whose name has been amended to become a draft law promulgating a law
"The Egyptian Authority for Unified Procurement, Supply and Medical Supplies,
,"Medical Technology Administration, and the Egyptian Drug Authority

)3 ‫(المادة‬

‫ إجراء عمليات الشراء‬،‫ دون غيرها‬،‫تتولى الهيئة المصرية للشراء الموحد‬

‫للمستحضرات والمستلزمات الطبية البشرية لجميع الجهات والهيئات‬
‫ من صافى قيمة ما‬%7 ‫ وذلك مقابل أداء رسم شراء ال يجاوز‬،‫الحكومية‬
‫ دون إضافة‬،‫تقوم الهيئة بشرائه للجهات والهيئات والشركات المشار إليها‬
،‫الرسوم الجمركية أو ضريبة القيمة المضافة أو غيرها من التكاليف‬
‫ وتحدد الالئحة التنفيذية قواعد‬،‫ويحصل نقدًا أو بأية وسيلة دفع أخرى‬
‫حساب الرسم بما ال يجاوز الحد األقصى المقرر وأحوال اإلعفاء من سداده‬
.‫كليا أو جزئيا‬

‫كما تتولى طبقا للقواعد والمعايير الدولية المتعلقة بالشراء الموحد إعداد‬
،‫خطط وبرامج وقواعد التدبير والشراء الموحد من الداخل أو الخارج‬
‫وإعداد الموازنة التقديرية السنوية الالزمة للشراء بالتنسيق مع وزارة‬
:‫ ولها علي األخص ما يأتي‬،‫المالية والجهات المستفيدة‬

‫ تنفيذ الخطط والسياسات الخاصة باألدوية والتكنولوجيا الطبية واتخاذ‬-1

‫ وإدراجها ضمن خطة الدولة‬،‫ والعمل بها‬،‫اإلجراءات الالزمة لتفعيلها‬

13
‫ومتابعة تنفيذها طبًق ا للقوانين المعمول بها‪ ،‬والنظم الصحية المحلية‬
‫والعالمية‪.‬‬

‫‪ -2‬وضع المواصفات والمعايير االسترشادية للجهات الطالبة في إعداد‬

‫احتياجاتها من المستحضرات والمستلزمات الطبية الخاضعة الحكام هذا‬
‫القانون‪.‬‬

‫‪ -3‬التنسيق مع شركات المستحضرات والمستلزمات الطيبة الخاضعة‬

‫ألحكام هذا القانون الحكومية والخاصة واألجنبية والجهات الحكومية‬
‫والمحلية والدولية لتعزيز المخزون اإلستراتيجي الطبي للدولة لمواجهة أي‬
‫ظروف استثنائية تتطلب تدخاًل عاجاًل يستوجب توفير إمكانيات تفوق‬
‫االحتياجات العادية في الظروف المستقرة‪.‬‬

‫‪ -4‬وضع نظم الحصر والتجميع الحتياجات الجهات الطالبة من المستحضرات‬

‫والمستلزمات الطبية الخاضعة ألحكام هذا القانون سنويًا‪.‬‬

‫‪ -5‬التعاقد مع جميع الشركات والجهات والمؤسسات الطبية الخاصة داخل‬

‫أو خارج جمهورية مصر العربية‪ ،‬ولشراء المستحضرات والمستلزمات‬
‫الطبية الخاضعة الحكام هذا القانون لصالح الجهات الطالبة‪.‬‬

‫‪ -6‬وضع قواعد التخليص الجمركي للمستحضرات والمستلزمات الطبية‬

‫لمواجهة الحاالت الطارئة بعد التنسيق مع وزير المالية‪ ،‬ويصدر بهذه‬
‫القواعد قرار من رئيس مجلس الوزراء بناء على عرض وزير المالية‪.‬‬

‫‪ -7‬وضع نظام لتقييم التكنولوجيا الطبية طبقا ألحدث النظم العالمية‬

‫لالستفادة من التكنولوجيا الحديثة ذات القيمة الفعالة‪ ،‬وذلك بالتنسيق مع‬
‫الجهات الطالبة‪.‬‬

‫‪ -8‬االطالع الدورى على المخزون من المستحضرات والمستلزمات الطبية‬

‫الخاضعة الحكام هذا القانون لدى الجهات الطالبة‪.‬‬

‫‪ -9‬وضع برامج ونظم التسجيل االلكترونى للشركات المحلية أو األجنبية‬

‫التي تعمل في مجال المستحضرات الخاضعة ألحكام هذا القانون‬
‫والخدمات الطبية وفقًا للقواعد واالجراءات التى يضعها مجلس اإلدارة‪.‬‬

‫‪ -10‬كما هو‪.‬‬

‫‪ -11‬إدارة منظومة التخزين والنقل والتوزيع للمستحضرات والمستلزمات‬

‫الطبية‪ ،‬واالطالع على مخازن الجهات المعنيه‪ ،‬وإدارة ومتابعة عمليات‬
‫الفحص واالستالم وتطبيق أعلى المعايير العالمية‪ ،‬وذلك دون االخالل بحق‬

‫‪14‬‬
 ‫تلك الجهات في إنشاء وإدارة مخازن المستحضرات والمستلزمات الطبية‬
.‫الخاضعة ألحكام هذا القانون الخاصة بها‬

Environmental

We couldn’t find any significant Environmental factors affecting the pharmaceutical

industry. Of course, pharmaceutical companies need to be conscious of pollution;
however, the development and production of pharmaceutical products is said to have
much less environmental impact than that of other industries (such as the automotive
.industry)

Porter's Five Forces analysis

Power of buyers Barriers to entry

-Pharma is unique among industries

because the medical patient has an
absolute lack of power regarding
pricing. The prescriber of the drugs,
the physician, ethically is not allowed
The big payoffs available in the
to profit from the sale of drugs. The pharmaceutical industry lead to
entity that pays for the drugs, the Competitive a steady flow of new companies
insurance company, only has a say in being created. A team of
how much it will pay to the distributor rivalry researchers with a hot idea or
of the drugs, meaning it has little
power with the drug manufacturers. newly granted patents can find
The insurer can refuse to pay for venture capital funds eager to
treatments it believes are overpriced. provide millions of dollars in
.- The only entities with any startup funding. These smaller
negotiating power are the pharmacies companies pose no serious
and medical institutions that fulfill the threat to big pharma. In fact,
medical patients’ prescriptions. Even
these entities have little power over
one of a startup investor's main
newer drugs under patent or drugs exit strategies is to sell out to a
with only one manufacturer. With more than $1 trillion in big pharma firm when new
Pharmacies focus on their profit global sales, the products are through the initial
15
pharmaceutical business can be
margins and have little incentive to .development phase
provide patients with the lowest cutthroat. The huge importance
possible pricing of intellectual property results
in strong competition for high-
level workers and leading
 Threat of substitute Power of supplier

The effect of substitutes is dependent on the

individual drug. A new FDA-approved Suppliers have very little
blockbuster drug that has patent protection, treats power in the pharmaceutical
a major health condition, and is first to market in industry. The raw materials
its category has a license to print billions of
dollars. The development of a new drug that for manufacturing drugs are
cures a major disease could be worth tens of commodity products in the
billions of dollars per year. However, the 30th chemical industry, which are
drug to treat a common condition could take available from numerous
.years to recoup the R&D costs
sources. Most of the
Once a drug loses its patents, generic drug
equipment used in
manufacturers start selling copycat versions at
substantially lower prices. A drug that netted manufacturing and research
$100 million a year in profit could become one is available from multiple
that earns only $1 million a year in profit manufacturers. Suppliers
overnight. Additionally, there is a major
international problem with counterfeit drugs. The
usually offer multiple
best of these counterfeits duplicate a real drug's products to the manufacturer,
formula and sell it at a lower price, which hurts which moderates pricing on
corporate profits. The worst counterfeits are rarer materials and unique
made with low-grade materials and can destroy
Characteristics
.the reputations of legitimate products
.equipment

Maturity Cyclicality Cost Structure

Non-Cyclical Industry
Because of Health service
is important for the IBNSINA Pharma
humans for life . Company operating
IBNSINA Company in leverage is reduced due to
mature life because of The In the field of medicines
the high variable costs of
health system is one of the and cosmetics there are
fixed costs, mostly
basics of life. alternatives represented in
consisting of the cost of
the so-called alternative
various medicines and
medicine and some
preparations, labor wages
popular prescriptions, but
.and branch rent
they do not amount to
being effective to reduce
the sales of medicines
being the most effective
and influential in addition
to their adoption from
different health authorities
unlike other prescriptions
that may be unknown and
16
traces.
 Profitability Dependence

Ibn Sinai Pharma is heavily dependent on

local pharmaceutical production companies as
Pharmaceutical distribution well as importing from international
companies is profitable With pharmaceutical production companies,
regard to the trade of medicines, .cosmetics and medical devices
it is a known profit commodity
for all parties of the product of
the distributor to the pharmacist :First: For suppliers
as it is a commodity priced by The company is more connected to famous
forced, but with regard to brand names as it is its agent in the local
cosmetics, an appropriate profit market and has been dealing with it for some
margin can be established by the time
company commensurate with the
market conditions of the :Second: For customers
company. For customers they are a very broad base of
consumers and there is no dependence on a
particular customer or sector especially where
the company relies more on distributing its
products to companies that deal with middle-
class and high-income customers

SWOT Analysis

Opportunities
Strengths

A comparative advantage for export to Arab and African - - A negative market gap with a broad domestic
.markets from export industries
market in the light of population growth
High profit margin for producing companies, especially if -
.a fair pricing mechanism is applied - Issuing the Comprehensive Health Insurance Act
and increasing the demand for medicines.
The continuous increase in the population, which -
increases the need for medicines and pharmacies in -There is a growing demand for cosmetics for a
addition to raising awareness of the importance of personal year-to-year rise in the population.
.hygiene and associated preparations and compounds -There are growth rates in the industry from year to
Work to open markets in areas where branches have not - year.
been opened, especially outside Cairo, and the
governorates of Upper Egypt and the company plans to
- The presence of attractive profitability of
spread its products geographically at the level of the companies working in this field.
.Republic
Increasing the diversification and complexity of the -
products that the company deals in the field of cosmetics,
.skin care products and hair
There are opportunities to expand this activity in light of -
.the growth of the local market
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 Threats Weaknesses

- Increase in the prices of raw materials in light of the foreign

exchange-based challenge and its negative impact on cost. The weakness of the regulators on the production and distribution -
- The spread of the phenomenon of adulterated drugs. .system and the need to establish a higher body for medicines
- Difficulties in transferring the value of exports from some African .The need to activate registration and pricing laws -
countries.
.Relying on the import of raw materials from abroad -
- High financing costs.
.The need to get Know How to produce new medicines -
- There is high competition in this area.
- The continued rise in the exchange rates of foreign currencies, The geographical distribution of customer products where -
especially the dollar, which leads to successive increases in the prices distribution is carried out in specific places while other areas lack
of imported products with the inability to raise the price of products in .these products
the same way. Companies seek to attract new segments of customers and -
- Companies will overcome the rise in exchange rates by .distribute their products throughout the republic
manufacturing with third parties in larger quantities to reduce the cost
and store appropriate quantities to cover the needs of the market for a Limited products that the company deals in despite its large sales -
longer period to overcome the rise in exchange rates. .strength in the Egyptian market
- Reducing the country's credit rating and its impact on importers and Companies work to increase their products and diversify the -
Egyptians in all fields. company faces significant risks related to the fluctuation of foreign
- There is an improvement in the credit rating of bankers in all fields as exchange rates, because of its dependence on imports from abroad
the company overcomes this by establishing good external relations from the companies with power of attorney and under the current
and contracts characterized by regularity and seriousness and helps the circumstances and the deterioration of the local currency and the
company to this: difficulty of finding foreign currencies in light of the instability of
There is a lot of experience with the operators of the activity. foreign cash reserves, which reflected on the company during the
past period of difficulty in finding foreign currency by which it can
Expanding the volume of activity by expanding the introduction of
new products in addition to increasing the number swelled from provide its needs as well as lack of liquidity in the company
existing products.

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