to bring into production by end of 2012. According to the Food and Drug Administration in 2014, trade in counterfeit commercial drugs has become more lucrative than dealing in illegal narcotics. Most of which come from Pakistan. Drugs for sexual enhancement, weight control, aesthetics, height enhancement, hair growth and body building are among the more prevalent fake drugs on the market. Innovation In recent years several drugmakers are gradually developing the ability to innovate, away from generic drugs production itself. Iran has around 8000 species of plant life and researches indicate that more than 2300 species have remedial characteristics or can be used as cosmetic products; only 100-300 of which are being used in pharmaceutical industries at present. Iran has 80 percent of the world medicinal herbs. Due to lack of required technology, they are exported raw and in limited quantities to foreign markets. Pharmaceutical companies In 2010, 92 companies were active in the pharmaceutical industry of Iran. The Social Security Investment Co. (SSIC), which is affiliated to the Ministry of Welfare, was reported in 2008 to be Iran's largest holding company, owning and controlling 22 pharmaceutical manufacturing companies and possessing a 40% share of Iran's total pharmaceutical production. The leading pharmaceuticals company is Darou Pakhsh, which is majority-owned by the Social Security Organization. The company manufactures, distributes, imports and exports finished products and pharmaceutical raw materials. Darou Pakhsh has an annual turnover of US$400m and claims to have the largest research and development operation of any Iranian drug firm. The company formed a plasmapheresis joint venture with a German medical firm, Biotest AG, in early 2004. The Razi Institute for Serums and Vaccines and the Pasteur Institute of Iran are leading regional facilities in the development and manufacture of vaccines. The Barkat Pharmaceutical Group is a major pharmaceutical holding that supplied 14% of the pharmaceutical market of Iran in 2016. Iranian pharmaceutical manufacturers are reported to be disadvantaged by the government's poor intellectual property protection regime and lack of foreign direct investment. Medical equipment The Department of Medical Equipments in the Ministry of Health and Medical Education (MOHME) is responsible for supervising imports in this segment, but the import and distribution of such equipment is mostly handled by the private sector. Iran has undergone the primary stages of development in terms of industrialisation and a rather strong indigenous manufacturing capability exists in the country. Therefore, one can expect to