Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2017
Saudi Arabia's pharmaceutical and healthcare markets will continue to stimulate interestamongst generic and innovative drugmakers alike. Generic drug penetration will grow as local productionincreases and cost-containment remains high on the government agenda - outpacing growth in the patenteddrug market. Innovative medicines will maintain a leading share of the overall pharmaceutical market,however, due to the lack of generics awareness among consumers and an underlying preference forbranded prescribing among physicians - although this will improve over the long term.
Headline Expenditure Projections
Pharmaceuticals: SAR27.9bn (USD7.44bn) in 2016 to SAR28.2bn (USD7.52bn) in 2017; +1.0% inlocal currency terms and +1.1% in US dollar terms. Forecast in line with Q317.
Healthcare: SAR129.1bn (USD34.4bn) in 2016 to SAR133.4bn (USD35.6bn) in 2017; +3.3% in localcurrency terms +3.4% in US dollar terms. Forecast in line with Q317.
Risk/Reward IndexSaudi Arabia's status as the largest pharmaceutical market in the Middle East and North Africa bodes wellfor its attractiveness to innovative drugmakers, reflected in the kingdom scoring 58.8 out of 100 in BMI'sInnovative Pharmaceuticals
However, issues relating to patent approvals and theregulatory system remain a major issue for foreign research-based pharmaceutical players.