Summary:

Three multinational pharmaceutical firms have announced plans to withdraw from Tunisia by the end of 2022 citing financial, administrative, and governance challenges. GSK, Bayer, and Novarti have announced their plans to depart the Tunisian market, taking a significant portion of Tunisia’s drug production capability, particularly those used in hospitals. SEPHIRE – a union of pharmaceutical researchers in Tunisia – warned that other large producers could follow if systemic issues related to financing and bureaucracy are not addressed. Additionally, wholesale pharmacists have discussed striking in the near-term due to a perceived failure of the government to meet financial obligations.

Outlook:  

With drug shortages already being felt at hospitals and pharmacies, we anticipate supply issues will be exacerbated by the departure of these major producers. In the medium-term, public frustration could result in civil unrest, and diminished capacity in the level of health care available. Meanwhile, we are also monitoring for follow-on effects in other sectors as other multinationals weigh the perceived instability of the Tunisian market against short- and medium-term opportunities.