Saudi Arabia Pharmaceuticals and Healthcare Report Q3 2008

Saudi Arabia Pharmaceuticals and Healthcare Report provides independent forecasts and competitive intelligence on Saudi Arabia's pharmaceuticals and healthcare industry.

Saudi Arabia accounts for around 65% of pharmaceutical sales in the Gulf Cooperation Council (GCC) region. Forecasts that the market should reach US$2.96bn by the end of 2012. The strongest growth should come over the first half of the forecast period, driven by increased public and private sector wealth thanks to soaring oil prices. Over the course of the forecast period, the government’s tough stance on pricing and increased generic penetration – albeit from a low base – is expected to limit market value gains. However, these negatives will not prevent rapid increases in volume consumption on the back of a growing population, increasing personal wealth and increasing chronic disease burden, which should continue to drive market value upwards.

New pharmaceutical pricing regulations, which took effect in February 2008 and resulted in price cuts for around 1,400 prescription drugs may limit the attraction of Saudi Arabia’s pharmaceutical market against its GCC neighbours. However, increased GCC integration is likely to mean that drugmakers continue to be attracted to the region.

Includes coverage of Saudi Arabia’s medical device market for the first time in Q308. A lack of clear regulation makes market access challenging at present. However, the Saudi Food and Drug Authority (SFDA) was put in charge in 2007 and is in the process of drafting guidelines that should help multinationals to know where they stand. At present, US FDA approval is the surest way to access the US$448mn device market. Meanwhile, medical devices are not the only sector for which regulation will be improved. The Ministry of Health has published draft biosimilar regulations, which are available for comment until August 2008.

Massive investment in hospital infrastructure is driving interest in the medical device market, which is almost entirely dependent on imports. In April 2008, multinational device-maker GE Healthcare expanded its joint venture with local distributor El Seif Development, demonstrating that, while direct foreign company presence remains limited by historically strict rules on company ownership, multinationals are increasingly looking to go beyond an import-only presence.

In updated Business Environment Rankings for Q308, Saudi Arabia is placed seventh, alongside Oman, out of 13 Middle East & Africa (MEA) markets surveyed. Saudi Arabia scores more highly than Oman thanks to its large market. However, its score is held back by a poor score for its market risks category, due to strict pricing regulations and certain intellectual property (IP) concerns. SHOW LESS READ MORE >

"Executive Summary
Table: Saudi Arabia Pharmaceuticals And Healthcare SW
Table: Saudi Arabia Political SWOT
Table: Saudi Arabia Economic SWOT
Table: Saudi Arabia Business Environment SWOT
Pharmaceutical Business Environment Ratings
Table: Middle East And Africa Pharmaceutical Business Environment Ratings
Limits Of Potential Returns
Risks To Realisation Of Returns
Saudi Arabia – Market Summary
Regulatory Regime
Regional Regulatory Developments
Free Trade Agreements
Intellectual Property Developments
IP Deficiencies
Pricing And Reimbursement Issues
Tendering Procedures
Table: Saudi Arabia’s Import Margins
Industry Developments
Epidemiology
HIV/AIDS
Healthcare Sector
Primary Healthcare Provision
Secondary Healthcare Provision
Recent Healthcare Provision Developments
Health Insurance
Pharmaceutical Sector
Pharmaceutical Distribution Sector
Table: Leading Saudi Arabian Drug Distribution Firms
Recent Pharmaceutical Company Activities
Industry Forecast Scenario
Key Growth Factors – Industry
Table: Saudi Arabian Health Expenditure Indicators, 2006-2012
Overall Market Forecasts
Table: Saudi Arabian’s Drug Market Indicators, 2006-2012 (US$mn unless otherwise stated)
Macroeconomic Scenario
Table: Saudi Arabia – Economic Activity
Patented Drug Market Forecast
Generics Market Forecast
Table: Saudi Arabia’s Generics Market, 2006-2012
OTC Market Forecast
Table: Saudi Arabia OTC Market, 2006-2012 (US$mn unless otherwise stated)
Table: Saudi Arabia’s Medical Device Market, 2005-2012 (US$mn unless otherwise stated)
Export/Import Market Forecasts
Table: Saudi Arabia’s Export/Import Forecast
Other Healthcare Data Forecasts
Table: Saudi Arabia’s Other Healthcare Data And Foreca
Key Risks To BMI Forecasts
Competitive Landscape
Table: Leading Pharmaceutical Companies In Saudi Arabia
Table: Leading Products By Value In Private Saudi Arabian Pharmaceutical Market, Q406 (MAT)
Company Profiles
Multinational Company Profiles
GlaxoSmithKline
Novartis
Merck & Co
Pfizer
Sanofi-Aventis
Indigenous Company Profiles
Saudi Pharmaceutical Industries & Medical Appliances Corp (SPIMACO)
TABUK Pharmaceutical Manufacturing
Al Jazeera Pharmaceutical Industries (JPI)
BMI Forecast Modelling
How We Generate Our Pharmaceutical Industry Forecasts
Pharmaceutical Industry
Pharmaceutical Business Environment Ratings Methodology
Ratings Overview
Table: Pharmaceutical Business Environment Indicators
Weighting
Table: Weighting Of Components
Sources

- GlaxoSmithKline
- Novartis
- Merck & Co
- Pfizer
- Sanofi-Aventis
- Saudi Pharmaceutical Industries & Medical Appliances Corp (SPIMACO)
- TABUK Pharmaceutical Manufacturing
- Al Jazeera Pharmaceutical Industries (JPI)