Saudi Arabia Pharmaceuticals & Healthcare Report

Published 03 December 2014

  • 122 pages
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$1,295.00
Saudi Arabia Pharmaceuticals & Healthcare Report

BMI View:   We expect heavy investment into Saudi Arabia's healthcare sector to continue, particularly as the government sees the sector as key to the diversifica tion of the economy. The medical tourism industry in particular provides opportunities for both pharmaceutical and medical device companies. We expect multinational companies will continue to dominate the local market despite stringent regulatory laws.

Headline Expenditure Projections

  • Pharmaceuticals: SAR24.65bn (USD6.58bn) in 2013 to SAR28.15bn (USD7.52bn) in 2014; +14.2% in both local currency and US dollar terms. Forecast upgraded from Q414 due to the availability of new pharmaceutical trade data.

  • Healthcare: SAR94.20bn (USD25.15bn) in 2013 to SAR101.99bn (USD27.24bn) in 2014; +8.3% in both local currency and US dollar terms. Forecast unchanged from Q414.

Risk/Reward Index

In our Q115 RRI, Saudi Arabia maintains its leading position of the 31 Middle East and Africa (MEA) markets in the region. Its high composite score is due to its wealth and sizeable population, which will support the longer-term development of its 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 (IP) protection remains a major issue for foreign research-based pharmaceutical players.

Key Trends And Developments

  • In November 2014, Health Minister Adel Fakeih announced that the ministry will set up 100 new hospitals with a bed capacity of 33,000 and 176 new kidney centres across Saudi Arabia over the coming five years. More than 1,500 doctors and healthcare technicians have been sent abroad by the ministry to receive training on the successful operation of these new hospitals, according to Saudi...

Table of Contents

BMI Industry View
7
SWOT
9
Political
11
Economic
13
Business Environment
14
Industry Forecast
15
Pharmaceutical Market Forecast
15
Table: Pharmaceutical Sales, Historical Data And Forecasts (Saudi Arabia 2010-2018)
16
Healthcare Market Forecast
17
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (Saudi Arabia 2010-2018)
18
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (Saudi Arabia 2010-2018)
18
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (Saudi Arabia 2010-2018)
19
Saudi Arabia
20
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (Saudi Arabia 2010-2018)
21
Patented Drug Market Forecast
22
Table: Patented Drug Market Indicators, Historical Data And Forecasts (Saudi Arabia 2010-2018)
23
Generic Drug Market Forecast
24
Table: Generic Drug Market Indicators, Historical Data And Forecasts (Saudi Arabia 2010-2018)
25
OTC Medicine Market Forecast
26
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (Saudi Arabia 2010-2018)
27
Pharmaceutical Trade Forecast
28
Table: Pharmaceutical Trade Data And Forecasts (Saudi Arabia 2012-2018)
29
Table: Pharmaceutical Trade Data And Forecasts local currency (Saudi Arabia 2012-2018)
30
Other Healthcare Data
31
Key Risks To BMI's Forecast Scenario
32
Macroeconomic Forecasts
34
Economic Analysis
34
Table: BMI AND BLOOMBERG CONSENSUS* FORECASTS FOR BRENT, USD/BBL
37
Table: Economic Activity (Saudi Arabia 2009-2018)
40
Industry Risk Reward Ratings
41
Middle East & Africa Risk/Reward Ratings
41
Saudi Arabia Risk/Reward Ratings
48
Rewards
48
Risks
48
Market Overview
50
Industry Trends And Developments
51
Epidemiology
51
Non-Communicable Diseases
51
Healthcare Sector
53
Healthcare Sector Developments
53
Healthcare Sector Funding
54
Private Healthcare Sector
54
Primary Healthcare Provision
56
Secondary Healthcare Provision
56
Health Insurance
57
Information Technology (IT) in Healthcare
58
Research And Development (R&D)
59
Biotechnology
59
Clinical Trials
60
Regulatory Development
61
Regional Regulatory Developments
63
Free Trade Agreements
64
Intellectual Property Regime
64
IP Deficiencies
66
Counterfeit and Unregistered Drugs
67
OTC Drug Market
67
Pricing Regime
68
Pricing System Reform
69
Tendering Procedures
70
Reimbursement Regime
71
Competitive Landscape
72
Pharmaceutical Industry
72
Domestic Industry
73
Foreign Industry
73
Pharmaceutical Sector Developments
74
Pharmaceutical Wholesale
75
Pharmaceutical Retail
76
Company Profile
78
SPIMACO
78
Saudi Arabian Japanese Pharmaceutical (SAJA)
82
TABUK Pharmaceutical Manufacturing
84
Jamjoom Pharma
87
GlaxoSmithKline
90
Novartis
93
Merck & Co
95
Pfizer
97
Sanofi
100
Hikma Pharmaceuticals Plc
103
Demographic Forecast
105
Table: Saudi Arabia's Population By Age Group, 1990-2020 ('000)
106
Table: Saudi Arabia's Population By Age Group, 1990-2020 (% of total)
107
Table: Saudi Arabia's Key Population Ratios, 1990-2020
108
Table: Saudi Arabia's Rural And Urban Population, 1990-2020
108
Glossary
109
Methodology
111
Pharmaceutical Expenditure Forecast Model
111
Healthcare Expenditure Forecast Model
111
Notes On Methodology
112
Risk/Reward Ratings Methodology
113
Ratings Overview
114
Table: Pharmaceutical Risk/Reward Ratings Indicators
114
Indicator Weightings
115

The Saudi Arabia Pharmaceuticals & Healthcare Report features Business Monitor International (BMI)'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.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc