OVERVIEW OF THE PHARMACEUTICAL MARKET IN

MOROCCO

Morocco's subsidised health insurance scheme, Rgime d 'Assistance
Mdicale (RAMED),launched in March 2012,is experiencing early-stage
difficulties with its target to increase healthcare accessibility those on
low incomes. This is to be expected, given the evidence of bribery and
corruption, and the shortage of doctors in the sector .BMI believes the
commitment to improve governance and implement controls in the
sector will be fulfilled in the medium-to-long term. As such, we
maintain that government healthcare spending will outpace private
healthcare spending over the forecast 2011-2016 period.

Headline Expenditure Projections:

Pharmaceuticals : MAD10.10bn (US$1.25bn) in 2011 to MAD11.24bn
(US$1.30bn) in 2012; +11.3% in local currency terms and +4.5% in US
dollar terms. Forecast broadly unchanged from Q 4 12.
Healthcare: MAD41.99bn (US$5.19bn) in 2011 to MAD47.09bn
(US$5.46bn) in 2012; +12.2% in local currency terms and +5.4% in US
dollar terms. Forecast slightly higher from Q 4 12, on account of slightly
lower historical figures.

Medical devices:

MAD2.19bn (US$270mn) in 2011 to MAD2.47bn (US$287mn) in 2012;
+13.1% in local currency terms and +6.2% in US dollar terms. Forecast
broadly unchanged from Q 4 12 .

Risk/Reward Rating:
In Q113, Morocco remains 12th out of the 30 markets included in the
MEA region. Its composite score remains unchanged, at 46.8 out of the
maximum 100. The country's rewards ratings are less promising than its
risks profile, which weighs down its overall score. The market is
medium-sized by regional standards and small on a global scale, but its
high growth potential offsets relatively low per capita drug
consumption, especially in rural areas. In the risks category, Morocco
scores above the regional average, indicating a relatively low level of
country and pharmaceutical industry-specific risk in a somewhat
volatile region.

Competitive Landscape:
The competitive landscape section provides comparative company
analyses and rankings by US$ sales and % share of total sales - for the
total pharmaceutical sector, as well as the OTC, generics, and
distribution sub-sectors.

Increasing GDP and health expenditure per capita are expected to
encourage drug consumption in Morocco. Real GDP growth is expected
to be in single-digit figures between 2012 and 2016. The national health
insurance scheme (AMO) is expected to provide substantial additional
funding for the health sector. Initially aimed at salaried workers, the
scheme has been expanded to cover the self-employed. The CNSS,
which operates the scheme in the private sector, announced that it
would be extending cover to ambulatory care, in addition to hospital
treatment. A health insurance scheme for those on very low incomes
(RAMED - Rgime dAssistance Mdicale aux Economiquement Dmuni)
was expanded in December 2011. RAMED will cover an extensive range
of chronic or serious conditions included in the AMO, associated
outpatient care and medicines.

The Moroccan pharmaceutical sector has entered a new phase of
development with the adoption of new legislation that provides a
modern legal framework for the pharmaceutical sector, which aims to
address some of the structural weaknesses inherent in the previous
system and open up the pharmaceutical sector to foreign investment
by abolishing the requirement that pharmaceutical companies be
majority-owned by a pharmacist. A patent law has also been ratified,
which, although not meeting all the demands of the international
pharmaceutical industry, provides a much clearer legal framework
regarding intellectual property rights.

The Moroccan pharmaceutical industry is represented by two major
trade organisations; AMIP and MIS. More than half of the
pharmaceutical companies operating in the country are owned by
foreign interests, and these companies are responsible for more than
half of industry turnover. Multinationals with a strong presence in the
Moroccan market include GlaxoSmithKline (GSK), Pfizer, Ranbaxy and
Sanofi. Hikma is also expected to increase its market penetration,
following the completion of a mandatory tender offer for 30.2% of
Promopharm in January 2012, increasing its stake in the company to
94.1%. Independent local manufacturers primarily operate under
licence or produce generics. Leading indigenous producers include
Cooper Pharma, Laprophan and Sothma.

ENHANCED STRATEGIC INTELLIGENCE:

Espicom's highly regarded world pharmaceutical market reports have
been redesigned to provide enhanced strategic intelligence in a user-
friendly format. Each report provides in-depth information, setting the
pharmaceutical market in context. The reports provide:

Five-year projections for economic, demographic, health expenditure,
health workforce and pharmaceutical market indicators.
Specialised intelligence on OTCs, generics, biologics and biosimilars.
Exclusive economic and demographic data from the Economist
Intelligence Unit (EIU) for each market in the series.
A separate statistical health file, comprising health expenditure, health
infrastructure, health services and health personnel.
The reports are updated quarterly, providing you with the latest
information for a full year. In addition, the service will keep you up to
date with market and industry news on a regular basis.

HEALTHCARE STATISTICS:

A comprehensive tabula review, comprising demographics,
epidemiology, health expenditure, hospital and primary care
infrastructure & services and healthcare personnel, is additionally
included.