Who – the protagonist
Dr Sherine Helmy, CEO of Pharco Corporation.
What?
Pharco Pharmaceuticals is one of the largest Egyptian private pharmaceutical manufacturers in the Middle East.
The company accounts for approximately 9% of the massive yet fragmented Egyptian pharmaceutical market.
While Pharco sells high-priced drugs in a bid to keep pace with the significant inflation in the current Egyptian market, it aims to mostly serve the less affluent sector.
Its large-scale operations are not limited to these multiple consumer segments but also extend to the business-to-business companies in the same market. It operates as a third-party manufacturer for other pharmaceutical companies in the same market.
Why?
Pharco had always prided itself on serving the under-privileged masses, but the US dollar exchange rate exceeding the EGP 30 mark left Sherine in a quandary.
A series of devaluations had halved the value of the Egyptian pound in less than a year, something his father, Dr Hassan A. Helmy, also faced as Founder and President of Pharco in 1987.
Hassan refused to raise the prices of various products despite successive devaluations, and Pharco would go on to become a household name under his unique vision.
The less fortunate was Pharco’s bottom line but global political upheaval was putting economies in turmoil and led to change becoming a constant factor in any business equation.
When?
The pound started to weaken in March 2022, but it reached crisis point in January 2023 when over 50% of its value was wiped out.
Where?
As of 2017, Egypt was the largest producer and consumer of pharmaceuticals in the Middle East. It was the second-largest market, after Saudi Arabia, with a value of approximately EGP 35.6billion.
Key quote
“If we were to raise our prices, what would the less fortunate do?”
Dr Hassan A. Helmy.
What next?
Over two successive generations, working in emerging markets, Pharco had transformed itself to become globally competitive, responding to institutional transitions and the resulting ecosystem changes in its home market over recent years.
But Sherine had many questions to consider, to ensure that the company’s growth was sustainable and in line with its core values as he dealt with ever-shifting challenges.
Topics include sustaining growth in light of the global economic and medical challenges, and continuing to serve the needy despite the recent currency devaluations.
On reasons for writing the case…
Hakim said: “I was hesitant when receiving a request from the El-Khazindar Business Research and Case Center to write a case about Pharco. However, when I started to look into it, I was curious to uncover the remarkable journey of this Egyptian pharmaceutical giant.
“The story of Dr Sherine Helmy and his father, Dr Hassan A. Helmy, is a clear demonstration of how a family business can thrive amidst economic challenges and political upheavals. Since Egyptian businesses are mostly family businesses, I thought that it would be a great inspiration to showcase the challenges faced by local firms, and how despite currency devaluations and rising production costs a company can still prevail as a strong leading firm in its area.
“Furthermore, this case provides valuable insights into the unique challenges and opportunities faced by businesses in emerging markets like Egypt.”
On the case writing challenges…
Hakim added: “One of my biggest challenges was scheduling interviews with the protagonists as well as obtaining detailed documentation. I had to always strike a balance between obtaining information and securing confidentiality while still making the case as practical as possible.”
On teaching the case…
He continued: “Teaching this case has been an enriching journey for students. It provides an engaging learning experience with a real-world example of how strategic vision and ethical leadership can drive business success in challenging environments. The case encourages discussions in class about the role of businesses in society and the importance of balancing profitability with social responsibility.
“It also offers a platform to discuss broader themes such as innovation, market expansion, and the impact of economic policies on business operations.”
On how the students react to the case…
He commented: “Students were very engaged during the discussion of the case. They appreciated the opportunity to analyse a business operating in a context that may be unfamiliar to them namely the pharmaceutical industry.
“The story of Pharco sparked lively discussions about the ethical considerations of business decisions and the strategies companies can employ to navigate economic and political challenges.
“In addition, students revealed their curiosity about topics such as succession planning and governance in a family business context.”
On case writing tips…
Hakim concluded: “My top recommendation for crafting an effective case is to emphasise storytelling. This could be via a captivating narrative that highlights the key characters, their motivations, and the obstacles they face, which makes the story more engaging to students and makes the learning experience more impactful.
“Additionally, providing adequate context and background information is crucial for helping students grasp the broader business environment. Finally, incorporating real data and quotes from key stakeholders can increase the case’s authenticity and depth.”
The case
Who – the protagonist
Dr Sherine Helmy, CEO of Pharco Corporation.
What?
Pharco Pharmaceuticals is one of the largest Egyptian private pharmaceutical manufacturers in the Middle East.
The company accounts for approximately 9% of the massive yet fragmented Egyptian pharmaceutical market.
While Pharco sells high-priced drugs in a bid to keep pace with the significant inflation in the current Egyptian market, it aims to mostly serve the less affluent sector.
Its large-scale operations are not limited to these multiple consumer segments but also extend to the business-to-business companies in the same market. It operates as a third-party manufacturer for other pharmaceutical companies in the same market.
Why?
Pharco had always prided itself on serving the under-privileged masses, but the US dollar exchange rate exceeding the EGP 30 mark left Sherine in a quandary.
A series of devaluations had halved the value of the Egyptian pound in less than a year, something his father, Dr Hassan A. Helmy, also faced as Founder and President of Pharco in 1987.
Hassan refused to raise the prices of various products despite successive devaluations, and Pharco would go on to become a household name under his unique vision.
The less fortunate was Pharco’s bottom line but global political upheaval was putting economies in turmoil and led to change becoming a constant factor in any business equation.
When?
The pound started to weaken in March 2022, but it reached crisis point in January 2023 when over 50% of its value was wiped out.
Where?
As of 2017, Egypt was the largest producer and consumer of pharmaceuticals in the Middle East. It was the second-largest market, after Saudi Arabia, with a value of approximately EGP 35.6billion.
Key quote
“If we were to raise our prices, what would the less fortunate do?”
Dr Hassan A. Helmy.
What next?
Over two successive generations, working in emerging markets, Pharco had transformed itself to become globally competitive, responding to institutional transitions and the resulting ecosystem changes in its home market over recent years.
But Sherine had many questions to consider, to ensure that the company’s growth was sustainable and in line with its core values as he dealt with ever-shifting challenges.
Topics include sustaining growth in light of the global economic and medical challenges, and continuing to serve the needy despite the recent currency devaluations.
Author perspective
On reasons for writing the case…
Hakim said: “I was hesitant when receiving a request from the El-Khazindar Business Research and Case Center to write a case about Pharco. However, when I started to look into it, I was curious to uncover the remarkable journey of this Egyptian pharmaceutical giant.
“The story of Dr Sherine Helmy and his father, Dr Hassan A. Helmy, is a clear demonstration of how a family business can thrive amidst economic challenges and political upheavals. Since Egyptian businesses are mostly family businesses, I thought that it would be a great inspiration to showcase the challenges faced by local firms, and how despite currency devaluations and rising production costs a company can still prevail as a strong leading firm in its area.
“Furthermore, this case provides valuable insights into the unique challenges and opportunities faced by businesses in emerging markets like Egypt.”
On the case writing challenges…
Hakim added: “One of my biggest challenges was scheduling interviews with the protagonists as well as obtaining detailed documentation. I had to always strike a balance between obtaining information and securing confidentiality while still making the case as practical as possible.”
On teaching the case…
He continued: “Teaching this case has been an enriching journey for students. It provides an engaging learning experience with a real-world example of how strategic vision and ethical leadership can drive business success in challenging environments. The case encourages discussions in class about the role of businesses in society and the importance of balancing profitability with social responsibility.
“It also offers a platform to discuss broader themes such as innovation, market expansion, and the impact of economic policies on business operations.”
On how the students react to the case…
He commented: “Students were very engaged during the discussion of the case. They appreciated the opportunity to analyse a business operating in a context that may be unfamiliar to them namely the pharmaceutical industry.
“The story of Pharco sparked lively discussions about the ethical considerations of business decisions and the strategies companies can employ to navigate economic and political challenges.
“In addition, students revealed their curiosity about topics such as succession planning and governance in a family business context.”
On case writing tips…
Hakim concluded: “My top recommendation for crafting an effective case is to emphasise storytelling. This could be via a captivating narrative that highlights the key characters, their motivations, and the obstacles they face, which makes the story more engaging to students and makes the learning experience more impactful.
“Additionally, providing adequate context and background information is crucial for helping students grasp the broader business environment. Finally, incorporating real data and quotes from key stakeholders can increase the case’s authenticity and depth.”
