|
|
Saudi Arabia Pharmaceuticals and Healthcare Report Q2 2008Published by: Business Monitor International Published: Apr. 22, 2008 - 64 Pages Table of Contents
AbstractSaudi Arabia’s drug market was estimated to be worth US$1.95bn in 2007, accounting for a little under60% 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. Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||