Saudi Arabia Pharmaceuticals and Healthcare Report Q3 2012
- ID: 2199773
- July 2012
- Region: Saudi Arabia
- 105 pages
- Business Monitor International
The Saudi Arabia Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Saudi Arabia's pharmaceuticals and healthcare industry.
BMI View: The Saudi Arabian government said it will increase its healthcare budget for 2012 by 26%.
Though BMI remains slightly more conservative in our growth forecasts, we think the government’s investment in the sector is very positive for the healthcare industry. Furthermore, the announcement and allocation of various tenders and contracts for health facility construction and fitting helps to dispel our fear that real public healthcare expenditure would not live up to the political rhetoric.
Headline Expenditure Projections
- Pharmaceuticals: SAR16.70bn (US$4.46bn) in 2011 to SAR18.96bn (US$5.06bn) in 2012; +13.6% in local currency and US dollar terms. Forecast up significantly from Q212 based on new historic data.
- Healthcare: SAR78.63bn (US$21.00bn) in 2011 to SAR91.23bn (US$24.36bn) in 2012; +16.0% in local currency and US dollar terms. Historic data down slightly from Q212 but forecast up slightly due to high public healthcare budget.
- Medical devices: SAR5.54bn (US$1.48bn) in 2011 to SAR6.53bn (US$1.74bn) in 2012; +17.9% in local currency and US dollar terms. Forecast up from Q212.
Risk/Reward Rating: Saudi Arabia’s composite score remains almost steady in Q312 at 55.6 out of 100, down from 55.7 the previous quarter. This takes the country to fifth place out of the 30 markets in the Middle East and Africa (MEA) in BMI’s proprietary Pharmaceutical Risk/Reward Ratings (RRRs). Its score is propped up by the country’s wealth and a sizeable population (exceeding 28mn in 2011). Furthermore, its forecast growth rate has been increased due to favourable public and private healthcare investments.
Key Trends And Developments
- In May 2012, a high-level parliamentary delegation from Saudi Arabia visited India to discuss trade collaborations, highlighting pharmaceuticals as an area of particular interest. The delegates were seeking Indian companies to establish manufacturing bases in Saudi Arabia to increase the availability of affordable medicines.
- The Ministry of Health plans to establish a pharmacoeconomic and outcome research centre. Deputy minister of health for logistics support Salah al-Mazrou said the ministry aims to help medical personnel and patients get an idea of the drugs they prescribe and use.
- The government has allocated SAR800mn (US$213.33mn) for the improvement of state-run hospital critical care facilities.
- This trend of high government and private expenditure on healthcare has led BMI to subjectively increase the forecast for medical device expenditure in the short-to-medium term.
However, we do not envisage government fiscal expenditure remaining high indefinitely, which will cause a slower long-term growth rate.
BMI Economic View: Fiscal policy in Saudi Arabia is set to remain highly expansionary in the short term. We have long held the view that the political tension stirred up by the Arab Spring would lead to a sharp ramping up of public spending on social services, infrastructure and public sector wages. This view was reaffirmed by a series of spending announcements throughout last year, particularly the US$110bn stimulus package outlined in early 2011.
BMI Political View: Saudi Arabia’s proposals for a Gulf Union through deeper political, economic and military integration of the Gulf Cooperation Council (GCC) states are unlikely to take off any time soon.
Although there are similarities between the states and all of them are concerned about the rise of Iran, significant differences between the countries will prevent a meaningful union from emerging. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Saudi Arabia Pharmaceuticals And Healthcare SWOT 7
Saudi Arabia Political SWOT 8
Saudi Arabia Economic SWOT 9
Saudi Arabia Business Environment SWOT 9
Pharmaceutical Risk/Reward Ratings 10
Table: Middle East And Africa Pharmaceutical Risk/Reward Ratings, Q312 11
Market Overview – Saudi Arabia 16
Regulatory Regime 17
Regulatory Developments 18
Regional Regulatory Developments 19
Free Trade Agreements 20
Intellectual Property Developments 20
IP Deficiencies 21
Counterfeit Drugs 23
OTC Drug Market 24
Pricing Regime 24
Reimbursement Regime 25
Pricing System Reform 25
Tendering Procedures 26
Industry Trends And Developments 27
Public Health Developments 28
Healthcare Sector 29
Private Healthcare Sector 30
Public And Private Healthcare Developments 31
Healthcare Professionals 33
Primary Healthcare Provision 34
Secondary Healthcare Provision 34
Health Insurance 35
Health Insurance Developments 36
Research & Development 38
Medical Device Sector 39
Medical Device Developments 40
Industry Forecast Scenario 41
Pharmaceutical Market Forecast 41
Table: Pharmaceutical Sales, 2008-2016 43
Key Growth Factors – Industry 44
Table: Overall Healthcare Expenditure, 2008-2016 45
Table: Government Healthcare Expenditure, 2008-2016 46
Table: Private Healthcare Expenditure, 2008-2016 46
Key Growth Factors – Macroeconomic 47
Table: Saudi Arabia GDBP By Expenditure, Real Growth, 2008-2016 51
Prescription Drug Market Forecast 53
Table: Prescription Drug Sales, 2008-2016 54
Patented Drug Market Forecast 55
Table: Patented Drug Sales, 2008-2016 56
Generic Drug Market Forecast 57
Table: Generic Drug Sales, 2008-2016 58
OTC Medicine Market Forecast 59
Table: OTC Medicine Sales, 2008-2016 60
Medical Device Market Forecast 61
Table: Medical Device Sales, 2008-2016 62
Pharmaceutical Trade Forecast 63
Table: Pharmaceutical Trade, 2008-2016 65
Other Healthcare Data Forecasts 66
Key Risks To BMI Forecasts 67
Competitive Landscape 68
Pharmaceutical Industry 68
Foreign Industry 68
Domestic Industry 70
Regional Harmonisation 72
Pharmaceutical Company Developments 73
Pharmaceutical Distribution Sector 74
Pharmaceutical Retail Sector 74
Company Profiles 76
Saudi Pharmaceutical Industries And Medical Appliances Corp (SPIMACO) 76
Saudi Arabian Japanese Pharmaceutical (SAJA) 79
TABUK Pharmaceutical Manufacturing 81
Jamjoom Pharma 83
Merck & Co 89
Demographic Outlook 95
Table: Population By Age Group, 1990-2020 (‘000) 96
Table: Population By Age Group, 1990-2020 (% of total) 97
Table: Key Population Ratios, 1990-2020 98
Table: Rural/Urban Population Spliy, 1990-2020 98
BMI Methodology 101
How We Generate Our Pharmaceutical Industry Forecasts 01
Pharmaceuticals Risk/Reward Ratings Methodology 02
Ratings Overview 02
Table: Pharmaceutical Ris/Reward Indicators 03
Table: Weighting Of Components 04