Established in 2001, Ibnsina Pharma is Egypt’s fastest-growing and second-largest pharmaceutical distributor. The company distributes a competitive portfolio of pharmaceutical products from over 350Egyptian and multinational companies to more than 50,000 customers including pharmacies, hospitals, retail outlets, and wholesalers. Its nationwide distribution network with 55 operational sites, including distribution hubs and central warehouses, is supported by a fleet of c. 830 vehicles.

With a market share of 24% as of December 2023, the company is a pioneer in introducing value-added services for its customers including telesales, same-day-delivery, and creative commercial activities, in addition to third-party logistics services.

Services

clients

Ibnsina Pharma supplies pharmaceuticals and personal care products to more than 50,000 private- and public-sector customers, including retail chains, independent pharmacies, wholesalers, and healthcare institutions through active participation in tenders. It relies on a highly efficient supply chain management system to deliver over 375,000 drops each month.

suppliers

The company sources a comprehensive portfolio of pharmaceutical and personal care products from over 325 multinational and local pharmaceutical suppliers. Its teams coordinate with suppliers at every stage of developing commercial offers including planning, design, distribution, and follow-up analysis. Ibnsina Pharma works diligently to realize suppliers’ desired strategies, meet all objectives and sales targets, and successfully position co-promoted products against those of competing brands.

Ibnsina Pharma was established in 2001 as a pharmaceutical distribution company under the name Ibnsina Laborex Pharma by a group of Egyptian investors in cooperation with the French Eurapharma Group. In 2006, the company’s Egyptian partners acquired 100% of its shares, leading to its rebranding as Ibnsina Pharma.

In 2009, the company turned its sights on expansion, making significant investments to add 15 distribution centers and five offices by 2012 as it embarked on a journey to enhance efficiency through standardizing operational processes.

The European Bank for Reconstruction and Development (EBRD) became a minority shareholder in 2015, acquiring a 21% stake through primary and secondary share transactions during the year.

The company's growth drive continued in 2017 with its intention to proceed with an initial public offering on the Egyptian Exchange, offering up 40% of its shares on its road to becoming a publically traded company.

As of December 2023, Ibnsina Pharma has grown its market share to 24%, and its growth has more than doubled that of the market for the last five years, with a CAGR in revenues of 22% compared to an industry CAGR of 17%.

Ibnsina Pharma is Egypt’s largest pharmaceutical company. Its success is anchored by a collective decision-making strategy and decentralized approach to management, both of which have been built on the solid foundations of its people. The company is a firm believer that realizing a business strategy is the responsibility of everyone in the organization, which is why it relies heavily on key information and market intelligence to drive its strategic objectives forward. Its leadership in the market hinges on the strength of its internal structure and its effectiveness in seeing through the company’s three-axis strategy: strengthening its core business, value-based differentiation, and diversifying revenue streams.

STRENGTHENING ITS CORE BUSINESS

Ibnsina Pharma is committed to solidifying and growing its legacy pharmaceutical distribution business through building a highly efficient supply chain and utilizing advanced technologies to provide the highest standard of services to clients. Its competitive advantage over new entrants is exemplified in its economies of scale, with over 9,500 SKUs, 50,000 customers, c.830 distribution vehicles, and a 7,000-person strong team.

VALUE-BASED DIFFERENTIATION

Ibnsina Pharma seeks to establish sustainable, value-based differentiation in the market as it focuses resource allocation to maximize value. It funnels considerable time, energy, and manpower to providing its highest-value clients with a comprehensive portfolio of services beyond its core business of distribution. This has allowed the company to grow considerably faster than competitors as it delivers every day on a high volume of transactions for a large number of suppliers and end consumers.

DIVERSIFYING REVENUE STREAMS

Because Ibnsina Pharma believes diversified revenue streams largely mitigate risk for any organization, the company has built up a solid, well rounded foundation to give it the know-how, assets, systems, and ability to handle complex operations that can be leveraged across industries. Its highly efficient supply chain, expansive distribution network, and third-party logistics activities (warehousing, transportation, overprinting, relabeling, and repackaging) will allow it to reap long-term benefits from the expansion into higher-margin, diversified revenue streams.

Healthcare is a highly defensive sector in Egypt with significant room for continued growth driven by recent regulatory reforms, increasing incidence of chronic disease, and a surge in generic uptake. Egypt also has a growing middle class with higher healthcare awareness and slowly burgeoning disposable income. In addition, the population, which hit 111 million in 2021, is increasingly aging. All of these factors perfectly position Egypt as the largest and most attractive healthcare market in the region.

PHARMACEUTICAL SALES (EGP BN)

Compounding matters is the retail price surge for pharmaceutical product in the wake of the November 2016 float of the Egyptian pound. The retail prices of over 3,000 SKUs rose 30-50% in 2016 and medications costing less than EGP 30 saw a 20% rise in 2017 due to increased input and production costs. This in addition to a steady increase in the number of pharmacies over the past five years means a wider customer base and higher returns for pharmaceutical distributors like Ibnsina Pharma.