Overview
Lebanon imports approximately 70 percent of its pharmaceutical products and produces approximately 30 percent locally, according to local manufacturers. According to Lebanese Customs, total pharmaceutical imports into Lebanon reached $552 million in 2022, of which $58 million were from the United States. Local production is mainly focused on manufacturing drugs under license for international companies. Lebanon’s main sources of pharmaceutical imports are Germany (12.8 percent), the United States (10.5 percent), Switzerland 8 percent), France (8 percent), Italy (6.7 percent) and Ireland (4.9 percent). Local pharmaceutical companies are trying to increase domestic production of medication to substitute for imports.
Lebanon’s ongoing economic crisis has resulted in a shortage of critical medication. The Central Bank of Lebanon, since October 2019, has been subsidizing imports of pharmaceuticals to Lebanon. However, the Central Bank has reduced the amount of U.S. dollars (USD_ available for these subsidies, resulting in massive shortages as well as higher prices for certain medications. High production costs, a weak regulatory framework, and counterfeit drugs are additional challenges facing the pharmaceutical industry in Lebanon. Still, Lebanon is expected to remain dependent on imports of pharmaceutical products.
Table 4: Pharmaceuticals Chart
| 2021 | 2022 | 2023 (Estimate) | 2024 (Projection) | |
| Total Local Production | $180 million | $165 million | $150 million | $150 million |
| Total Exports | $38 million | $44 million | $29 million | $29 million |
| Total Imports | $900 million | $552 million | $505 million | $505 million |
| Imports from the US | $106 million | $58 million | $52 million | $52 million |
| Total Market Size | $1.042 billion | $673 million | $626 million | $626 million |
| Exchange Rates | LBP15,000 | LBP15,000 | LBP15,000 | LBP15,000 |
(Total market size = (total local production + imports) – exports)
Units: $ U.S. Dollars, LBP Lebanese Pounds
Source: Lebanese Customs statistics –Chapter 30 for 2021-2022 data; local importers for 2023-2024 data
Leading Sub-Sectors
According to local experts, U.S. pharmaceutical products have an advantage over European and Asian products in the biotechnology, high-tech, anti-cancer, and cardiovascular fields. Moreover, new leading American drugs that are not yet manufactured in Europe are typically well received in Lebanon.
Opportunities
There are no specific opportunities or trade events in Lebanon geared to promote U.S. pharmaceutical products. The U.S. Commercial Service provides a wide range of services including, Gold Key Service (GKS) and International Partner Search (IPS), which help U.S. companies explore opportunities in Lebanon.
Resources
Lebanese Customs Administration
Contact for the Commercial Section that covers the pharmaceuticals/drugs sector: Naaman Tayyar, Head of Commercial Section, Email: Naaman.Tayyar@trade.gov.