Saudi Arabia Pharmaceuticals and Healthcare Report Q3 2012

Date: July 3, 2012
Pages: 105
US$ 1,175.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Download

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Includes 3 FREE quarterly updates

BMI View: The Saudi Arabian government said it will increase its healthcare budget for 2012 by 26%.

Though BMI remains slightly more conservative in our growth forecasts, we think the government’s investment in the sector is very positive for the healthcare industry. Furthermore, the announcement and allocation of various tenders and contracts for health facility construction and fitting helps to dispel our fear that real public healthcare expenditure would not live up to the political rhetoric.

Headline Expenditure Projections
  • Pharmaceuticals: SAR16.70bn (US$4.46bn) in 2011 to SAR18.96bn (US$5.06bn) in 2012; +13.6% in local currency and US dollar terms. Forecast up significantly from Q212 based on new historic data.
  • Healthcare: SAR78.63bn (US$21.00bn) in 2011 to SAR91.23bn (US$24.36bn) in 2012; +16.0% in local currency and US dollar terms. Historic data down slightly from Q212 but forecast up slightly due to high public healthcare budget.
  • Medical devices: SAR5.54bn (US$1.48bn) in 2011 to SAR6.53bn (US$1.74bn) in 2012; +17.9% in local currency and US dollar terms. Forecast up from Q212.
Risk/Reward Rating: Saudi Arabia’s composite score remains almost steady in Q312 at 55.6 out of 100, down from 55.7 the previous quarter. This takes the country to fifth place out of the 30 markets in the Middle East and Africa (MEA) in BMI’s proprietary Pharmaceutical Risk/Reward Ratings (RRRs). Its score is propped up by the country’s wealth and a sizeable population (exceeding 28mn in 2011). Furthermore, its forecast growth rate has been increased due to favourable public and private healthcare investments.

Key Trends And Developments
  • In May 2012, a high-level parliamentary delegation from Saudi Arabia visited India to discuss trade collaborations, highlighting pharmaceuticals as an area of particular interest. The delegates were seeking Indian companies to establish manufacturing bases in Saudi Arabia to increase the availability of affordable medicines.
  • The Ministry of Health plans to establish a pharmacoeconomic and outcome research centre. Deputy minister of health for logistics support Salah al-Mazrou said the ministry aims to help medical personnel and patients get an idea of the drugs they prescribe and use.
  • The government has allocated SAR800mn (US$213.33mn) for the improvement of state-run hospital critical care facilities.
  • This trend of high government and private expenditure on healthcare has led BMI to subjectively increase the forecast for medical device expenditure in the short-to-medium term.
However, we do not envisage government fiscal expenditure remaining high indefinitely, which will cause a slower long-term growth rate.

BMI Economic View: Fiscal policy in Saudi Arabia is set to remain highly expansionary in the short term. We have long held the view that the political tension stirred up by the Arab Spring would lead to a sharp ramping up of public spending on social services, infrastructure and public sector wages. This view was reaffirmed by a series of spending announcements throughout last year, particularly the US$110bn stimulus package outlined in early 2011.

BMI Political View: Saudi Arabia’s proposals for a Gulf Union through deeper political, economic and military integration of the Gulf Cooperation Council (GCC) states are unlikely to take off any time soon.

Although there are similarities between the states and all of them are concerned about the rise of Iran, significant differences between the countries will prevent a meaningful union from emerging.
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, Q312
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, 2008-2016
Key Growth Factors – Industry
  Table: Overall Healthcare Expenditure, 2008-2016
  Table: Government Healthcare Expenditure, 2008-2016
  Table: Private Healthcare Expenditure, 2008-2016
Key Growth Factors – Macroeconomic
  Table: Saudi Arabia GDBP By Expenditure, Real Growth, 2008-2016
Prescription Drug Market Forecast
  Table: Prescription Drug Sales, 2008-2016
Patented Drug Market Forecast
  Table: Patented Drug Sales, 2008-2016
Generic Drug Market Forecast
  Table: Generic Drug Sales, 2008-2016
OTC Medicine Market Forecast
  Table: OTC Medicine Sales, 2008-2016
Medical Device Market Forecast
  Table: Medical Device Sales, 2008-2016
Pharmaceutical Trade Forecast
  Table: Pharmaceutical Trade, 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 Spliy, 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
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