Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2012

Date: October 3, 2012
Pages: 104
US$ 1,295.00
Publisher: Business Monitor International
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)

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Includes 3 FREE quarterly updates

BMI View: Saudi Arabia’s transition to an increasingly privatised and comprehensive healthcare system will drive the demand for both patented and generic drugs. The country is investing heavily in healthcare infrastructure and we expect this will be borne out in double-digit growth forecasts across our three headline indicators.

Headline Expenditure Projections
  • Pharmaceuticals: SAR16.70bn (US$4.46bn) in 2011 to SAR18.95bn (US$5.06bn) in 2012; +13.5% in local currency and US dollar terms. Forecast broadly unchanged from Q312.
  • Healthcare: SAR78.63bn (US$21.00bn) in 2011 to SAR91.20bn (US$24.35bn) in 2012; +16.0% in local currency and US dollar terms. Forecast broadly unchanged from Q312.
  • Medical devices: SAR5.54bn (US$1.48bn) in 2011 to SAR6.53bn (US$1.74bn) in 2012; +17.8% in local currency and US dollar terms. Forecast unchanged from Q312.
Risk/Reward Rating: Saudi Arabia’s composite score remained steady in Q412 at 55.6. This places the country to firth place out of the 30 markets in the region. Its score is propped up by the country’s wealth and a sizeable population (exceeding 28mn in 2011). 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.

Key Trends And Developments

In a quiet quarter for pharmaceutical industry developments, the government’s crackdown on smoking was intensified with the announcement in July 2012 of a ban on smoking in public places that would come into force with immediate effect. The official decree bans smoking, including shisha pipes, from all government facilities and the majority of commercial areas, including restaurants, supermarkets and shopping malls. The decree also prohibits the sale of tobacco to citizens under 18.

BMI Economic View: Assuming the survival of the current form of government into the medium term, we see ongoing strong growth and asset accumulation via real expansion in investment and exports, amid relatively high oil prices. Inflation in Saudi Arabia is unlikely to pick up substantially in the near term. Although the economy is enjoying a cyclical boom - brought about in large part by supportive monetary and fiscal policy - the government has so far succeeded in keeping prices in check through an extensive system of subsidies, which have taken the sting out of the upside price pressure brought about by rising incomes.

BMI Political View: Saudi Arabia was able to avoid Arab Spring-style protests by increasing economic incentives to the public, thanks to its massive oil wealth. However, we do not believe that the Kingdom will be able to head off political change indefinitely. Saudi Arabia has several of the social and demographic characteristics of Arab Spring states, and faces a highly uncertain transition of power from a septuagenarian and octogenarian generation of leaders to a younger and inexperienced cohort. It remains to be seen whether the monarchy can liberalise the country in an orderly manner or face a popular uprising calling for more dramatic change. Either way, owing to Saudi Arabia’s vast oil resources and centrality in the Middle East, its future will be watched extremely closely.
Executive Summary
SWOT Analysis
Saudi Arabia Pharmaceuticals And Healthcare SWOT
Saudi Arabia Political SWOT
Saudi Arabia Economic SWOT
Saudi Arabia Business Environment SWOT
Pharmaceutical Risk/Reward Ratings
  Table: Middle East And Africa Pharmaceutical Risk/Reward Ratings, Q412
Market Overview – Saudi Arabia
Regulatory Regime
Regulatory Developments
Regional Regulatory Developments
Free Trade Agreements
Intellectual Property Developments
IP Deficiencies
Counterfeit Drugs
OTC Drug Market
Pricing Regime
Reimbursement Regime
Pricing System Reform
Tendering Procedures
Industry Trends And Developments
Public Health Developments
Healthcare Sector
Private Healthcare Sector
Public And Private Healthcare Developments
Healthcare Professionals
Primary Healthcare Provision
Secondary Healthcare Provision
Health Insurance
Health Insurance Developments
Research & Development
Medical Device Sector
Medical Device Developments
Industry Forecast Scenario
Pharmaceutical Market Forecast
  Table: Pharmaceutical Sales Indicators, 2008-2016
Key Growth Factors – Industry
  Table: Healthcare Expenditure Indicators, 2008-2016
Key Growth Factors – Macroeconomic
  Table: Saudi Arabia - Economic Activity, 2011-2016
Prescription Drug Market Forecast
Saudi Arabia Pharmaceuticals & Healthcare Report Q412
© Business Monitor International Ltd Page
  Table: Prescription Drug Sales Indicators, 2008-2016
Patented Drug Market Forecast
  Table: Patented Drug Market Indicators, 2008-2016
Generic Drug Market Forecast
  Table: Generic Drug Sales Indicators, 2008-2016
OTC Medicine Market Forecast
  Table: OTC Medicine Sales Indicators, 2008-2016
Medical Device Market Forecast
  Table: Medical Devices Sales Indicators, 2008-2016
Pharmaceutical Trade Forecast
  Table: Exports and Imports Indicators, 2008-2016
Other Healthcare Data Forecasts
Key Risks To BMI Forecasts
Competitive Landscape
Pharmaceutical Industry
Foreign Industry
Domestic Industry
Regional Harmonisation
Pharmaceutical Company Developments
Pharmaceutical Distribution Sector
Pharmaceutical Retail Sector
Company Profiles
Saudi Pharmaceutical Industries And Medical Appliances Corp (SPIMACO)
Saudi Arabian Japanese Pharmaceutical (SAJA)
TABUK Pharmaceutical Manufacturing
Jamjoom Pharma
Merck & Co
Demographic Outlook
  Table: Population By Age Group, 1990-2020 (‘000)
  Table: Population By Age Group, 1990-2020 (% of total)
  Table: Key Population Ratios, 1990-2020
  Table: Rural/Urban Population Split, 1990-2020
BMI Methodology
How We Generate Our Pharmaceutical Industry Forecasts
Pharmaceuticals Risk/Reward Ratings Methodology
Ratings Overview
  Table: Pharmaceutical Ris/Reward Indicators
  Table: Weighting Of Components
OTC Healthcare in Saudi Arabia to 2014 US$ 495.00 Jul, 2010 · 168 pages

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