1. OUTLOOK ON THE MOROCCAN MEDICAL
DEVICE MARKET AND ERAMEDIC VISION
Rachid BELKAHIA
Chairman & CEO
ERAMEDIC
COFIMAG Group
MAGHREB LIFE SCIENCE SECTOR
FINPRO SEMINAR
Helsinki, October 27th 2011

2. Summary
I- Key facts and trends of the Moroccan
medical device market
II- Eramedic vision

3. Key facts and trends of the Moroccan
medical device market
Morocco : Macro environment
― Area 710.850 square km
― Population 32.7 million
― Population growth rate 1.5 % (4th in the Middle
East and Africa Region)
― Life expectancy 71 / 73,50
― Population density 46 inhabitants per km2
― Working population 48 %
― Currency Dirham
― Inflation rate 3%
― GDP 98.9 billion US Dollars
― GDP per capita 3.020 US Dollars
― GDP growth 5.2%

4. Key facts and trends of the Moroccan
medical device market
Health expenditure
Total (US $ billion) 5.8
% public 36.9
% private 63.10
% GDP 5.8
Per capita (US Dollars) 177

5. Key facts and trends of the Moroccan
medical device market
Morocco : Medical device market
― Medical device market 178.1 million US Dollars
• per capita 5.4 US Dollars
• in % GDP 0.2 %
• in % of world market 0.10 %

6. Key facts and trends of the Moroccan
medical device market
― National health system
• Ministry of health (MOH)
• Social Security System (CNSS)
• Army hospitals
• Private clinics & centers

7. Key facts and trends of the Moroccan
medical device market
Morocco : Key facts
OPERATING
HOSPITAL QUANTITY BEDS THEATERS
Public Health 133 27.540 300
CNSS 13 1.360 40
Military 06 1.500 53
Private 270 7.600 180
422 38.000 573
― Hospital beds per 1000 inhabitants 1,20
― Doctors per 1000 inhabitants 0,8

8. Key facts and trends of the Moroccan
medical device market
― Number of physicians 27.200
% public 58.7
% private 41.30
Rate/1000 population 0.80

9. Key facts and trends of the Moroccan
medical device market
Sources of financing of health
― Households 59 %
― Government 26 %
― Public administrations and companies 5%
― Private companies 5%
― Local authorities 1%
― International cooperation 1%
― Caritatism and other sources of financing 3 %

10. Key facts and trends of the Moroccan
medical device market
Medical devices market by major sector
― Diagnostic imaging 21.8 %
― Consumables 24.2 %
― Dental products 5.5%
― Orthopaedic implantable 17.2 %
― Others 31.3 %

11. Key facts and trends of the Moroccan
medical device market
Imports of medical devices
by leading suppliers
― FRANCE 19 %
― GERMANY 16,3 %
― USA 15,4 %
― OTHER EUROPE 11,5 %
― OTHER 10,4 %
― CHINA 8,5 %
― ITALY 6,5 %
― AUSTRIA 5%
― JAPAN 4,9 %
― SPAIN 2,5 %

12. Key facts and trends of the Moroccan
medical device market
 Entry of new suppliers in our market (Far
East, Turkey, Brazil, Argentina,...) which fullfil
quality standards.

13. Key facts and trends of the Moroccan
medical device market
The demand
― Strong tradition of public expenditure
― Growing demand from the private sector, but
particular interest for refurbished equipment
― Compulsory health insurance scheme since 2005
(AMO:Assurance Maladie Obligatoire) which covers:
. Hospital treatment
. Ambulatory care
― Ramed scheme ( Régime d’assurance médicale aux
économiquement démunis) for those low or no
incomes.

14. Key facts and trends of the Moroccan
medical device market
The offer
― Keen competition (more than 250 distributors and
retailers) due to the absence of entry barriers
― The key factors of success depend mostly on the
“relational strategies” and price oriented policies
― Weak appraisal by the market of differentiation
strategies (quality, technology, innovation,
service, ...), but qualitative change of purchasing
behavior from part of high range customers such
as teaching hospitals and army hospitals.

15. Key facts and trends of the Moroccan
medical device market
Moroccan market trends
― The new health insurance scheme will impact
positively the request of health care
― Qualitative regulation efforts consisting in :
• Procedure of recording for single use devices
and reagents
• Adoption of CE requirements and other
standards for électromedical equipment and
consumables

16. Key facts and trends of the Moroccan
medical device market
Moroccan market trends
― Present negotiations between the Health Ministry
and the APMB (Association of the professionals
of the biomedical equipment) to regulate the
importation of refurbished and second hand
equipment
― Particular attention is paid for the development
of biomedical competences (EST Salé, FST Settat,
Etude TELECART...)
― Deconcentration of the purchases (process within
the tenders) to the 16 regions within the country.

17. Key facts and trends of the Moroccan
medical device market
Opportunities
― Growing potential of demand and more
professionalism required from medical
device suppliers
Threats
― Weak speed of reforms
― Some lack of transparency
― Expansion of second-hand equipment
market in private sector

18. Eramedic vision
Who are we ?
― Year establishment : 1974
― Employees : 43
― Turnover: 9 million Euro (2010)
― Activities portfolio :
• X-ray
• Operating theatres
• Hospital waste treatment systems
• Laboratory equipment
• Maintenance
• Infections control systems
• Consumables

19. Eramedic vision
― Registrations / Best practice:
• ISO 9001
• Global compact (corporate citizenship):
since 2006
• CGEM Label (corporate citizenship):
since 2007
― Business association membership:
• CGEM (General Confederation of Moroccan
employers)
• International Chamber of Commerce (ICC)

20. Eramedic vision
Main customers of Eramedic
― Health Ministry
― Teaching Hospitals
― Army hospitals
― Social security clinics
― Private clinics
― Universities, …

21. Eramedic vision
Strengths
― Global offer with world class partners
(GETINGE, MAQUET, AESCULAP, KARL STORZ,
AGFA…)
― Strong internal customers oriented culture
― Decentralized management with a very flexible
and reactive organization
― Good reputation on our market

22. Eramedic vision
Main future focus
― Promotion and diffusion of new concepts :
• “Operating theatre”
• “Central sterilization”
• “Turnkey” projects
• “Mobile hospitals ”
― Competitive products
― Innovating offers

23. Eramedic vision
Main future focus
― Business Culture (Listening, trust, exemplarity...)
― Strengthening business partnership with the
suppliers (Innovative concepts, training
support, ...)
― Development of the domestic distribution agent
network to intensify the penetration of the 16
regions
― Diversification of our markets (Mena,
subsaharian markets).