How life sciences will define the next chapter in the Middle East transformation story

Few challenges have tested the strength and depth of the life sciences industry like the current age in which we now live. We are edging closer to a growing and aging world population with even more challenges looming ahead, requiring an adequate supply of food and improved medical care.

Within this context, the fundamental contribution of life science companies remains clear – to deliver world-class innovation, drive operational excellence in healthcare, and generate sustainable impact in the communities in which we operate.

Rebounding from global challenges
The effects of Covid-19 have varied widely across the region. The impact of the pandemic and, more specifically, the Zero-Covid policy in China heightened supply chain vulnerabilities around the world. As the pharmaceutical industry faced delays with regional distribution hubs, lockdowns, exponential increases in shipping prices, and widespread travel bans, the strength and reliability of supply chain operations were brought into question.

In addition, healthcare markets across the Middle East and Africa have felt the ripple effects of an increasingly volatile global economy. Inflation has forced the hand of many industrial markets and government procurement policies but building the agility to adapt and sustain through resilience is an exciting proposition for many businesses like ours.

The latest Economic Insight report for the Middle East reveals a positive regional outlook despite a significant downgrade in global GDP growth against a backdrop of rising inflation and interest rates.

Middle East GDP growth in 2022 is now projected at 5.5 per cent, slightly higher than forecasted three months ago. Accordingly, the positive regional outlook is underpinned by solid projections for activity in GCC economies.

Building efficiency and resilience in healthcare product supply
We live in disruptive times with regards to economic turbulence and global supply chain obstacles. To that end, pharmaceutical companies need to introduce relevant solutions that prioritise access to the latest innovations in the fields of health and nutrition.

Doing so also unlocks the opportunity to improve proximity to local markets and optimise supply chain networks to support more efficiencies. Beyond tapping into the huge potential of this region, supply chain efficiencies can also potentially cut emissions in line with global sustainability efforts.

As one of the fastest growing markets in the region, Egypt is an example of how change and innovation is driving growth while overcoming market challenges. Public-private partnerships are unlocking new areas of local manufacturing of over-the-counter (OTC) products, representing a symbiotic relationship that is bound to flourish. Establishing a local manufacturing hub in Egypt can not only expand access to everyday health but also support supply chains with mitigating disruptions.

Operational resilience is another key prerequisite – which is why having a well-placed regional distribution center (RDC) can substantially reduce time-to-market and facilitate the urgent delivery of medication within the Middle East. This also ensures greater network flexibility, increased frequency, and dedicated stock in the face of global supply chain crises. With our recently launched RDC in the UAE, we aim at reducing time-to-market by as much as 58 per cent while delivering over 3,500 tons of product annually.

Sustainable development is at the core of life science strategy
Through their products, services and innovative prowess, life science companies are in a unique position to contribute significantly toward meeting the United Nations’ Sustainable Development Goals with regards to reaching vulnerable communities and enabling equal access to health care.

With the proliferation of chronic diseases such as cancer in the region, care for large, underserved communities is more critical than ever – especially in the face of disparities in accessing that care. Life science companies are in a unique position to work more closely with local governments to support capacity-building around early diagnosis and treatment.

Proximity to the local markets, resilient supply chains, and operational agility are all key factors to doing sustainable business in this diverse region. Working in close collaboration with customers, partners, and local authorities, life science companies can help shape our future globally and in the region.

Wojciech Romaszko is the regional chief financial officer at Bayer Middle East