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Welcome to today’s episode of the Iranian Market. Iran’s pharmaceutical industry
is one of the industries that has a high potential for presence in the global markets
because of its domestic capabilities in producing various types of medicines.

The pharmaceutical industry is one of the key industries regarding its effects on
human health. It is also very advantageous regarding the profits it produces. Fortune
Magazine announced in an article published in 2010 that the pharmaceutical industry
is the third-best industry in the world with respect to being appropriate for investment.
Investment in this industry naturally leads to growth.
The growth of the world population along with mankind’s vital need for health
services are among the factors that help this industry to grow faster. Aging of the
population, the existence of chronical diseases, some countries’ insurance coverage
and economic welfare can be mentioned as other influential factors on the growth of
the pharmaceutical industry.
Also among the advantages of investing in this market is the balanced rate of growth
in the global pharmaceutical industry. The pharmaceutical industry is less affected by
global economic fluctuations. This fact became more evident during the 2008 and
2009 economic crisis when the market continued its activity with a 70% additional
growth. Today, the turnover of the pharmaceutical industry in the world has surpassed
one trillion dollars.

It should be noted that the expense of the pharmaceutical industry is high in comparison
with other industries. One of the important expenses in this industry pertains to
research and development (R&D). The expense of research and development in
proportion to the sale is more than other advanced industries that enjoy state-of-the-
art technologies.

The pharmaceutical industry is on the track of development, expansion, and
innovation because of its special status and direct relationship with the life and health
of mankind.

The high income of prominent pharmaceutical companies in the world has paved
the way to spend a remarkable part of their income on research and development.

All over the world, pharmaceutical companies spend 40% of their income on research,
development, marketing, and sales.
Researches show that sometimes a 15-year period is needed for research on nearly
10,000 medicinal mixtures with a cost of one billion dollars.
The pharmaceutical industry is seriously monopolized. Most of these products are
made in North America and Europe. Statistics show that North America had the