Ahmed Kamel – Egypt Daily News
Egypt’s pharmaceutical industry has witnessed a remarkable leap in profitability and growth, reflecting its rising importance as both a strategic pillar of national health security and a contributor to economic development. According to Minister of Public Business Sector, Engineer Mohamed Shimi, the government is prioritizing the modernization and expansion of the state-owned pharmaceutical sector to boost competitiveness, quality, and export capacity.
Speaking during the general assembly of the Holding Company for Pharmaceuticals, Chemicals, and Medical Supplies, Minister Shimi emphasized that pharmaceutical manufacturing is now at the heart of Egypt’s strategic planning. The meeting, which approved the budget plan for the fiscal year 2025/2026, was attended by company officials, representatives of the Central Auditing Organization, and board members, including Chairman Dr. Ahmed Hegazy.
Shimi noted that the companies under the holding umbrella had shown highly positive financial indicators, signaling a strong trajectory of growth. He stressed that the ministry is working to localize pharmaceutical manufacturing, integrate cutting-edge global technologies, and align operations with the highest international standards, including Good Manufacturing Practices (GMP). The ministry’s development plans also include upgrading production lines, expanding manufacturing capacity, and ensuring strict compliance with occupational safety and health protocols.
Human capital, Shimi said, remains central to these ambitions. Training programs focused on innovation and scientific research will support the production of strategic, high-value medicines. He also underscored the importance of adhering to project timelines and strengthening public-private partnerships at both the domestic and international levels. These partnerships, he said, are key to increasing Egypt’s production and export capacity and accessing new markets.
A substantial financial boost
Presenting the board’s annual report, Dr. Ashraf El-Khouly, Managing Director of the Holding Company for Pharmaceuticals, announced that the group is targeting consolidated revenues of 18 billion Egyptian pounds in FY 2025/2026, a 131 percent increase compared to the previous year. Even more striking is the projected jump in net profits, expected to reach 3.4 billion pounds, marking a 343 percent increase, a historic high for the sector.
El-Khouly also noted significant growth in the market capitalization of publicly listed subsidiaries, indicating improved investor confidence and growing demand in the sector.
Modernizing for sustainability
Minister Shimi reaffirmed the government’s commitment to restructuring the financial frameworks of pharmaceutical subsidiaries, ensuring sustainable profitability and enabling investment in expanded production. He called for comprehensive updates to management systems and organizational structures, aligned with current economic demands and competitive pressures.
To this end, the implementation of an enterprise resource planning (ERP) system is underway to boost operational efficiency, enhance oversight, and improve resource management across production lines.
New projects and international partnerships
The presentation before the general assembly highlighted a number of promising projects and investment opportunities. These include the production of biological drugs, insulin, biosimilars, dry powder inhalers, hormonal medications, and active pharmaceutical ingredients (APIs). Among the most notable developments is a new partnership with U.S.-based company “Dawah” to co-produce and export a wide range of pharmaceutical products, including sterile injections, nutritional supplements, and ophthalmic preparations.
The minister concluded the meeting by emphasizing the importance of integrating economic, social, and environmental dimensions to ensure long-term sustainability. He called for elevated performance standards across all administrative and operational levels, improved working environments, and enhanced professional conduct.
Shimi reaffirmed that the ministry is moving steadily toward comprehensive restructuring and modernization of affiliated companies. The goal, he said, is to strike a balance between profitability and sustainability while positioning Egypt as a leading regional hub for pharmaceutical production and exports capable of meeting domestic demand and expanding aggressively into international markets.
