Pharmacare (original) (raw)

Since its inception in 1985, Pharmacare has steadily matured into a beacon of local industry and a pillar of Palestinian innovation. Founded by a visionary group of entrepreneurs led by the late Subhi Khoury, a pioneer in pharmaceutical manufacturing, Pharmacare aimed to bring affordable, high-quality medicines to Palestinian patients. It has since grown into a multimillion-dollar company with deep local roots and a global outlook.

Nestled on a mountain in Beitunia that overlooks the Mediterranean coast and sea, Pharmacare began with a modest workforce of around 10 employees. Today, more than 350 Palestinians work across its Palestinian operations, with over 70 percent holding advanced degrees in pharmacy, chemistry, biology, engineering, and business. Pharmacare Palestine’s product catalogue has expanded to an extensive portfolio that includes all therapeutic classes, veterinary drugs, medical devices, and licensed medicines to meet the markets’ variable needs. Financially Pharmacare has been successful, not once failing to generate a profit or distribute dividend. Having proven to be such a sound investment for its shareholders, Pharmacare attracted direct foreign investment in 1999 from the major European Pharma player Grünenthal.

Facade of the main facility.

The secret behind this past and continued success is an uncompromising commitment to quality manufacturing. To supply the local and export markets, Pharmacare built a state-of-the-art facility which received the European Good Manufacturing Practice (GMP) certificate in 2008. Investment in quality and technology made it the only Palestinian company to export products to the EU and other European and international markets. In doing so, the company reinforced its motto of being an “Expression of Trust.” Achieving this level of quality meant adhering to quality standards in all stages of production and being subject to multiple inspections on a routine basis.

Tablet press machine.

Operating amid the challenges of occupation, Pharmacare has implemented robust systems to reduce vulnerability. The company maintains a significant amount of finished goods and raw material stock to continue operations in case of supply chain disruptions. Also, the facility is equipped with a backup generator, solar panels, and extensive water reservoirs to support manufacturing. This preparedness helped Pharmacare overcome the difficult time of the COVID-19 pandemic. However, this system is severely stretched with the current devastating and unrelenting war in Gaza, not to mention the worsening situation in the West Bank with increased settler violence, road closures, and Israel withholding Palestinian taxes and refusing to take the excess shekels from the Palestinian market.

Blistering.

Palestine and thus Pharmacare’s relative isolation from the global marketplace makes it more difficult to trade in both goods and ideas. The global market, especially in Pharma, remains highly interconnected. Without easy access to this web, the risk of falling behind increases when it comes to technology, processes, and innovation. Such conditions are potentially disastrous for any company and could signal the start of a steady decline.

Rendering of Pharmacare’s new facility.

To mitigate the risks of being solely located in turbulent Palestine, a subsidiary Pharmacare Premium Malta was founded in 2011. At first glance this might seem like a bizarre move for a Palestine-centered company such as Pharmacare. However, due to the challenges discussed above, the relatively small size of the Pharma market in Palestine’s internal growth is capped.

Employing over 100 people, Pharmacare Premium Malta specializes in the development, registration, production, licensing, and supply of high-potency oral medication such as anti-cancer and immunosuppressant medication. Pharmacare Premium Malta increases Pharmacare Palestine’s global reach, supplying medicines to markets across the global including the EU, Southeast Asia, New Zealand, Canada, Mexico, Turkey, MENA. Additionally, Pharmacare Premium created a channel for technology and innovation to flow into Pharmacare Palestine.

To remain at the cutting edge of pharmaceutical development and manufacturing, Pharmacare Palestine is implementing a strategic plan of approximately 30 million euros, Pharmacare 2030. The plan aims to increase the company’s production capacity, introduce new production lines, improve sustainability and resilience, unlock efficiencies, and modernize structures. To fund this ambitious plan, Pharmacare will use its own retained earnings, loans from local banks, and a 2.5 million–euro loan from the European Bank for Reconstruction and Development (EBRD).

Pharmacare sign.

With the ongoing war in Gaza and the ever-increasing difficulty of doing business in the West Bank, Pharmacare was faced with a choice: Continue the implementation of Pharmacare 2030 or be more fiscally conservative. Pharmacare decided wholeheartedly to continue investing to implement its vision, trusting that the situation is bound to improve and believing in the latent potential of the Palestinian people that can create a bright future if only given the opportunity.