Saudi Arabia Pharmaceuticals & Healthcare Report

Providing expert analysis, independent forecasts and competitive intelligence on the pharmaceuticals and healthcare industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Pharmaceuticals and Healthcare Risk Reward Index, Market Summary, Economic Forecasts, Company Profiles and Competitive Landscape.

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Saudi Arabia Pharmaceuticals & Healthcare Report
Product Price
$1,295.00

BMI View: A prolonged period of subdued oil prices may see Saudi Arabia cut back on high value drug spending. While public spending on healthcare will remain high as a result of the sensitive nature of the sector and its political importance, governments will enforce cost-containment measures, including price cuts on medicines and private sector engagement, to limit healthcare spending.

Headline Expenditure Projections

  • Pharmaceuticals: SAR28.4bn (USD7.6bn) in 2014 to SAR31.8bn (USD8.5bn) in 2015; +11.9% in both local currency and US dollar terms. Forecast unchanged from Q 4 15.

  • Healthcare: SAR103.7bn (USD27.7bn) in 2014 to SAR119.8bn (USD31.9bn) in 2015; +15.5% in both local currency and US dollar terms. Forecast in line with Q 4 15.

Headline Pharmaceuticals & Healthcare Forecasts (Saudi Arabia 2013-2019)
2013 2014 2015f 2016f 2017f 2018f 2019f
f = BMI forecast. Source: National Sources, BMI
Pharmaceutical sales, USDbn 6.582 7.562 8.462 9.419 10.419 11.461 12.540
Pharmaceutical sales, % of GDP 0.88 1.01 1.23 1.29 1.33 1.34 1.34
Pharmaceutical sales, % of health expenditure 27.8 27.3 26.5 27.1 27.6 27.9 28.3
Health spending, USDbn 23.685 27.652 31.941 34.798 37.817 41.047 44.370

Risk/Reward Index

In our Q116 Risk/Reward Index matrix, Saudi Arabia maintains second position out of 31 markets analysed in the Middle East and African region, scoring 59.8. Its high composite score is due to its wealth and a sizeable population, which will support the longer-term development of the pharmaceutical market. Furthermore, its forecast growth rate is high due to favourable public and private healthcare investments. The government is also in the process of creating more public-private health partnerships and encouraging private health insurance uptake, which should provide momentum for drug sales. However, Saudi Arabia's commitment to intellectual property protection remains a major issue for foreign research-based pharmaceutical players.

Latest Updates

  • In October 2015, UK-based Martindale Pharma opened a scientific office in Saudi Arabia. The office forms part of the company's strategy to commercialise its portfolio in international markets with high growth potential. The office will be responsible for obtaining marketing authorisation approvals of its products with the Saudi FDA. The company is planning for 20 product approvals in the next three years.

  • In collaboration with the Saudi Ministry of Health, Sanofi launched a campaign to raise the level of awareness towards common ailments among Hajj pilgrims in September 2015.

  • It was announced in August 2015 that the health ministry intends to increase the number of beds in private hospitals in the country, in line with new regulations adopted in 2015.

BMI Economic View

Growth in Saudi Arabia will slow sharply over the next couple of years as the government embarks on fiscal consolidation and oil production flattens. This, combined with statistical effects linked to the rebasing of the national accounts, has led us to revise our forecasts downward. We now project real economic growth of just 1.9% in 2016 and 2.3% in 2017.

BMI Political View

The series of setbacks suffered by Saudi Arabia's King Salman risks undermining the legitimacy of the current ruling triumvirate. While Salman's woes are still a long way away from constituting an existential threat to his grip on power, any further erosion in his standing will both complicate the government's economic reform efforts and renew uncertainty over the line of succession.

BMI Industry View
7
SWOT
9
Political
11
Economic
13
Operational Risk
14
Industry Forecast
16
Pharmaceutical Market Forecast
16
Table: Pharmaceutical Sales, Historical Data And Forecasts (Saudi Arabia 2011-2019)
17
Healthcare Market Forecast
18
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (Saudi Arabia 2011-2019)
19
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (Saudi Arabia 2011-2019)
20
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (Saudi Arabia 2011-2019)
20
Prescription Drug Market Forecast
21
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (Saudi Arabia 2011-2019)
22
Patented Drug Market Forecast
23
Table: Patented Drug Market Indicators, Historical Data And Forecasts (Saudi Arabia 2011-2019)
24
Generic Drug Market Forecast
25
Table: Generic Drug Market Indicators, Historical Data And Forecasts (Saudi Arabia 2011-2019)
26
OTC Market Forecast
27
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (Saudi Arabia 2011-2019)
28
Pharmaceutical Trade Forecast
29
Table: Pharmaceutical Trade Data And Forecasts (Saudi Arabia 2013-2019)
31
Table: Pharmaceutical Trade Data And Forecasts local currency (Saudi Arabia 2013-2019)
31
Key Risks To BMI's Forecast Scenario
32
Macroeconomic Forecasts
34
Industry Risk Reward Indicies
41
Middle East and Africa Risk/Reward Index
41
Saudi Arabia Risk/Reward Index
48
Rewards
48
Risks
48
Market Overview
50
Industry Trends And Developments
52
Epidemiology
52
Non-Communicable Diseases
53
Healthcare Sector
54
Healthcare Sector Developments
55
Healthcare Sector Funding
56
Private Healthcare Sector
57
Primary Healthcare Provision
59
Secondary Healthcare Provision
59
Health Insurance
59
Medical Tourism
61
Healthcare Infrastructure Boom
62
Table: Healthcare Resources (Saudi Arabia 2009-2014)
64
Table: Healthcare Personnel (Saudi Arabia 2009-2014)
64
Table: Healthcare Activity (Saudi Arabia 2009-2014)
64
Information Technology (IT) In Healthcare
65
Research & Development
66
Biotechnology
66
Clinical Trials
68
Regulatory Development
69
Regional Regulatory Developments
71
Free Trade Agreements
73
Intellectual Property Regime
73
IP Deficiencies
75
Counterfeit & Unregistered Drugs
76
Pricing Regime
76
Pricing System Reform
77
Tendering Procedures
78
Reimbursement Regime
79
Competitive Landscape
80
Pharmaceutical Industry
80
Domestic Industry
81
Foreign Industry
81
Pharmaceutical Sector Developments
82
Pharmaceutical Wholesale
84
Pharmaceutical Retail
85
Company Profile
87
GlaxoSmithKline
87
Hikma Pharmaceuticals Plc
90
Jamjoom Pharma
93
Merck & Co
96
Novartis
99
Pfizer
101
Saudi Arabian Japanese Pharmaceutical (SAJA)
104
Sanofi
106
SPIMACO
109
TABUK Pharmaceutical Manufacturing
113
Demographic Forecast
117
Demographic Outlook
117
Table: Population Headline Indicators (Saudi Arabia 1990-2025)
118
Table: Key Population Ratios (Saudi Arabia 1990-2025)
118
Table: Urban/Rural Population & Life Expectancy (Saudi Arabia 1990-2025)
119
Table: Population By Age Group (Saudi Arabia 1990-2025)
119
Table: Population By Age Group % (Saudi Arabia 1990-2025)
120
Glossary
122
Methodology
124
Pharmaceutical Expenditure Forecast Model
124
Healthcare Expenditure Forecast Model
124
Notes On Methodology
125
Risk/Reward Index Methodology
126
Index Overview
127
Table: Pharmaceutical Risk/Reward Index Indicators
127
Indicator Weightings
128

The Saudi Arabia Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.

BMI's Saudi Arabia Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Saudi Arabia pharmaceutical and healthcare industry.

Key Benefits

  • Benchmark BMI's pharmaceutical and healthcare market forecasts for Saudi Arabia, to test other views - a key input for successful budgeting and strategic business planning in the Saudi pharmaceutical and healthcare market.
  • Target business opportunities and risks in the Saudi pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Saudi Arabia.
  • Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.

Coverage

BMI Industry View

An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.

BMI Industry Forecast Scenario

Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:

  • Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
  • Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
  • Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
  • Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
  • OTC Drug Market: OTC sales (USDbn & % of total sales).
  • Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.

BMI’s Pharmaceuticals and Healthcare Risk Reward Index

BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Summary

A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape

Industry Developments

A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.

Regulatory Regime

Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.

Competitive Landscape

The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.