Saudi Arabia Pharmaceuticals and Healthcare Report Q2 2008

Publication Date	April 2008
Publisher	Business Monitor
Product Type	Report
Pages	64
ISBN Number	not applicable
Product Code	BMI01693

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Summary

Saudi Arabia's drug market was estimated to be worth US$1.95bn in 2007, accounting for a little under 60% of the Gulf Co-operation Council (GCC) region's market. BMI forecasts 6.5% year-on-year (y-o-y) growth. Pharmaceutical demand should be driven by modernisation of the healthcare sector and rapid population growth. However, government moves to control drug prices through mandatory price reductions could serve to limit growth in the sector.

Patented drugs should remain dominant over the forecast period and as a consequence, the pharmaceutical trade balance should remain negative. However, the generics market is expected to gradually increase its market share from 5.6% in 2007 to 8.6% by 2012. At the same time, the country's underdeveloped overthe- counter (OTC) sector should continue to expand, fuelled by improved disease awareness among citizens.

As the largest pharmaceutical market in the region, recently-relaxed laws on foreign ownership, which now allow 100% foreign equity investment, could see more foreign drugmakers consider Saudi Arabia as a production base. At present, only the UK's GlaxoSmithKline (GSK) is notable as a major multinational with production interests in the country.

However, for the time being at least, Saudi Arabia will remain highly reliant on imported drugs.

Inflationary pressures have been partly blamed on rising imported commodity prices that are affected by currency fluctuations. The government has made two recent attempts to control drug price inflation. The first was the creation of the National Company for Unified Purchase of Medicines and Medical Appliances which will supply government hospitals. The second was the announcement of mandatory price cuts for prescription drugs that have been on the market for longer than five years. Older drug prices will be cut by 1% per year of registration. In addition, all drug prices must now be registered in Saudi riyal and prices displayed on the packet.

In BMI's updated Business Environment Rankings for Q208, Saudi Arabia falls one place to 8th out of 14 Middle East and Africa (MEA) markets surveyed. Our assessment of the attractiveness of its business environment has been marginally lowered after it emerged that recently announced mandatory drug price reductions due in February 2008 will become an annual feature of the market.

Content

Executive Summary
Saudi Arabia Pharmaceuticals And Healthcare SWOT
Saudi Arabia Political SWOT
Saudi Arabia Economic SWOT
Saudi Arabia Business Environment SWOT
Pharmaceutical Business Environment Ratings
- Table: 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 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 Drug Market Indicators, 2006-2012 (US$mn unless otherwise stated)
Macroeconomic Scenario
- Table: Saudi Arabia - Economic Activity
Patented Drug Market Forecast
Generics Market Forecast
- Table: Saudi Arabia Generics Market, 2006-2012
OTC Market Forecast
- Table: Saudi Arabia OTC Market, 2006-2012 (US$mn unless otherwise stated)
Export/Import Market Forecasts
- Table: India's Export Of Pharmaceutical Products To The GCC Countries, 2001-2005 (US$mn)
- Table: Saudi Arabia Export/Import Forecast (US$mn)
Other Healthcare Data Forecasts
- Table: Saudi Arabia's Other Healthcare Data And Foreca
Key Risks To BMI Forecasts
Competitive Landscape
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 Industry Forecasts
Pharmaceutical Industry
Pharmaceutical Business Environment Ratings Methodology
Ratings Overview
- Table: Pharmaceutical Business Environment Indicators
Weighting
- Table: Weighting Of Components
Sources