Egypt Financial Assistance Programs Market Analysis

Egypt Financial Assistance Programs Market Executive Summary

The Egypt Financial Assistance Programs Market is at around $79.3 Mn in 2023 and is projected to reach $225.6 Mn in 2030, exhibiting a CAGR of 16.1% during the forecast period 2023-2030.

The aim of drug manufacturers' patient financial support is to minimize or remove out-of-pocket cost sharing as an obstacle when patients choose medications, thereby keeping them on brand-name drugs for longer. Co-pay assistance, free drugs trails, bridge programs, sliding scale programme, Coupons, Bulk purchasing programs etc are some of the widely used financial assistance programme under patient assistance programs. Patients' out-of-pocket drug cost sharing is determined by their health plans or pharmacy benefit manager's (PBM's) formulary--a list of preferred and nonpreferred prescription drugs. Preferred status is based on a drug's effectiveness, price, and the level of rebate the payer receives from the manufacturer for giving the drug preference over its competitors. Generics and preferred brand drugs are generally assigned lower patient cost sharing than nonpreferred brand drugs. As drug prices have increased, so has patient cost sharing, causing some patients to stretch, forgo, or discontinue medication that is too expensive. Drug manufacturers often seek to mitigate these effects by providing or funding various forms of patient financial support.

Noncommunicable diseases (NCDs), including cardiovascular diseases, diabetes, cancer, and chronic respiratory diseases, are currently the leading national cause of death in Egypt. NCDs are estimated to account for 82% of all deaths in Egypt and 67% of premature deaths. Therefore, the market is predominately driven by factors such as rising drug cost and growing prevalence of chronic conditions whereas complex insurance landscape, stringent regulatory environment and budgetary concerns restrict the market.

Pharmaceutical companies providing financial assistance to patient are such as Roche, Bayer, Merck, GSK, Pfizer, Johnson & Johnson, Novartis among others.

Market Dynamics

Market Drivers

Chronic disease prevalence: Noncommunicable diseases (NCDs), including cardiovascular diseases, diabetes, cancer, and chronic respiratory diseases, are currently the leading national cause of death in Egypt. NCDs are estimated to account for 82% of all deaths in Egypt and 67% of premature deaths.  The increasing number of patients with chronic conditions necessitates long-term, often expensive treatments. This creates a sustained need for financial assistance over extended periods. Chronic disease management is a priority in healthcare, driving support for assistance programs.

Rising drug costs: Specialty and innovative drugs, particularly for rare diseases or complex conditions, are becoming increasingly expensive. This trend leads to higher out-of-pocket costs for patients, even those with insurance. As a result, more patients need financial assistance to access their prescribed medications.

Market Restraints

Regulatory constraints: Anti-kickback laws limit how pharmaceutical companies can structure their assistance programs to prevent undue influence on prescribing. These rules make program design more complex and increase compliance costs and operational challenges.

Insurance pushback: Some insurers see assistance programs as threats to their formulary and cost-control strategies. They may exclude copay assistance from deductible calculations using copay accumulator programs, which could diminish the programs' effectiveness for certain patients.

Budgetary pressures: Pharmaceutical companies need to balance the cost of assistance programs with maintaining profit margins. Economic downturns or changes in company strategy might lead to reduced funding, resulting in more selective or limited assistance options.

Regulatory Landscape and Reimbursement Scenario

The regulatory body responsible for the pharmaceutical industry in Vietnam is the Ministry of Health (MOH), which is organized into several divisions, including the Drug Administration of Vietnam (DAV) and the Department of Medical Equipment and Construction (DMEC). The DAV is responsible for the overall management of pharmaceutical products, including their import, export, and manufacturing, while the DMEC monitors the manufacturing, registration, and trading of medical devices. The marketing authorization of drugs in Vietnam follows Circular No. 32/2018/TT-BYT, which outlines the requirements for marketing authorization and the process for obtaining it. The management of medical devices is regulated by the Ministry of Health through ministerial circulars and decrees.

The reimbursement system in Vietnam is managed by the Health Insurance Fund, which covers medicines, medical services, and health procedures that are specifically indicated by the government. Patients who undergo health examinations at healthcare establishments that are eligible for registration of initial health examination and treatment are covered for the examination and treatment expenses with the appropriate ratio. However, if a patient uses the services of a healthcare establishment that is not in the respective eligibility list, their expenses are not covered by the Health Insurance Fund.

The government has set a target for the pharmaceutical industry to develop and produce original brand-name drugs, as well as vaccines and patent drugs. The industry is expected to grow significantly, driven by increasing economic growth, rising income per capita, and an aging population.

The regulatory body and reimbursement system in Vietnam are designed to ensure the safety and efficacy of drugs and medical devices, while also promoting the development of the pharmaceutical industry and providing access to healthcare services for patients.

Competitive Landscape

Key Players

Here are some of the major key players in the Egypt Financial Assistance Programs Market:

• Novartis
• Merck
• GSK
• Johnson & Johnson
• Roche
• Pfizer
• Bayer
• Sanofi
• AbbVie
• AstraZeneca