On consolidation and export recovery
How would you describe the current state of Syria’s pharmaceutical manufacturing sector following years of conflict?
ISSAM MAATOUK: The pharmaceutical manufacturing sector in Syria has gone through an exceptionally challenging period in recent years. For roughly five to six years prior to mid-2024, manufacturers were operating at sustained losses due to controlled pricing structures that did not reflect rising input and operational costs. When controlled prices were adjusted in 2024, companies were finally able to stabilise operations and move towards breaking even. This stabilisation phase has allowed manufacturers to rebuild raw material inventories and restore continuity in production. The sector remains structurally strong in terms of manufacturing know-how and facility standards. Many companies, including ours, operate under Good Manufacturing Practices (GMP) and maintain diversified dosage forms and therapeutic product portfolios. Meanwhile, the competitive landscape has intensified. During the war, the number of pharmaceutical factories grew sharply, increasing from around 55 facilities to roughly 95 today. This expansion has led to strong local competition, with almost every category now widely available in the domestic market. The sector is therefore in a phase of consolidation and adjustment rather than rapid expansion.
In what ways did the conflict reshape production models, particularly regarding licensing and generics?
MAATOUK: Before the conflict, a significant portion of production was carried out under licence from international pharmaceutical companies. However, most of these companies withdrew from the country during the conflict. Manufacturers were therefore compelled to transition licensed products into generics in order to maintain supply and protect market share. This shift towards generics was not a strategic choice but a necessity under exceptional circumstances. Today, local generic manufacturing continues to form the backbone of the sector. The future of licensed manufacturing is more nuanced. Some international firms have shown renewed interest in re-establishing partnerships, while others prefer to export finished high-tech or specialty products directly into the market rather than produce locally. The generics segment will remain central, but there is potential for selective revival of licensed production where both regulatory and commercial conditions are aligned.
How are demand dynamics and affordability affecting pharmaceutical consumption today?
MAATOUK: Purchasing power remains a significant constraint for much of the population. Households face pressure across all essential needs, such as food, electricity and health care. In practical terms, this has led to reduced demand in several therapeutic categories, including medicines for chronic conditions. We have observed cases where doctors advise patients to extend intervals between doses – for example, taking cardiovascular or hypertension medication every other day rather than daily, or reducing intake of diabetic treatments and pain relief products. While medicines typically exhibit low demand elasticity, affordability pressures have nevertheless affected volumes in certain segments. There are signs of gradual improvement, however. As economic conditions stabilise and pricing structures become more sustainable, the sector is better positioned to ensure consistent availability. Maintaining supply reliability remains essential, particularly for chronic disease treatments where continuity is critical.
What are the medium-term prospects for the sector, particularly regarding exports and international cooperation?
MAATOUK: Exports represent a key pillar of future growth. Prior to the conflict, Syrian pharmaceutical products were present in markets such as Iraq, Yemen and Sudan. However, unpredictable export restrictions during the previous regime undermined buyer confidence, particularly in chronic therapies that require uninterrupted supply. The new government has adopted a more outward-looking stance and is actively encouraging exports across sectors, including pharmaceuticals. Rebuilding trust with external buyers will take time, but there is renewed interest in regaining lost markets and exploring new ones, including markets in Africa and South America. Syria can be viewed today as a market rebuilding after a long period of isolation. This creates diverse opportunities for foreign pharmaceutical companies. Potential areas include renewed licensed manufacturing, technology transfer, GMP alignment, and the establishment of research and development centres or bioequivalence study facilities – all historically underdeveloped.
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