Table of Contents
EXECUTIVE SUMMARY
- Scope of the analysis
- Datamonitor insight into P&R in Saudi Arabia
- Key opinion leaders interviewed
- Related reports
OVERVIEW OF THE HEALTHCARE CHALLENGES IN SAUDI ARABIA
- Key findings
- Future challenges facing healthcare in Saudi Arabia
- The growing demographics of Saudi Arabia
- Chronic illnesses are a major concern for authorities in Saudi Arabia
HEALTHCARE FINANCING IN SAUDI ARABIA
- Key findings
- Access to healthcare in Saudi Arabia is currently patchy
- Private healthcare expenditure is set to grow
- Healthcare in Saudi Arabia is primarily delivered through public channels
- Controlling costs in the public sector
- Change in distribution among private funding
- Healthcare reforms in Saudi Arabia aim to allow access to healthcare to
all individuals
- Healthcare reforms transfer the burden of financing private sector
employee healthcare from the Ministry of Health to employers
- Structural reforms seek to privatize hospitals
HEALTH INSURANCE IN SAUDI ARABIA
- Key findings
- Private versus public healthcare in Saudi Arabia
- The basic private health insurance coverage stipulated for Saudi Arabia is
the best in the region
- The Saudi insurance market will be a strategic growth area as nationals
are included
- The cooperative health insurance sector is a strategic growth area in
Saudi Arabia
- The Saudi healthcare insurance sector is well-regulated
- Key factors affecting growth in the burgeoning Saudi healthcare
insurance market
THE SAUDI ARABIAN PHARMACEUTICAL MARKET
- Key findings
- Pharmaceutical market dynamics in Saudi Arabia
- European drugs dominate the imports in Saudi Arabia
- Saudi generics manufacturers face a number of barriers to growth
- Generic drugs are widely used in the public sector, but not in the
private sector
- Pricing of generics and strong competition limits revenues
- Misleading information on generic medicine inserts impacts uptake
- Pharmacists play a significant and often unregulated role in dispensing
of brands over generics
- Patients are pressurizing physicians to prescribe generics
- Physicians in Saudi Arabia tend to overprescribe, use trade names and
are highly influenced by medical representatives
- Drug sales growth experienced across all therapy areas in Saudi Arabia
- An increasingly westernized lifestyle has increased the prevalence of
chronic diseases and the dependence on drugs
- Lifestyle products dominate the Saudi retail market
- Saudi Arabia is dominated by Big Pharma and regional generics manufacturers
- Domestic generics player are a key threat to international pharma
companies operating in Saudi Arabia
- Inorganic growth has been a successful growth strategy to date
- Saudi Arabia incentivizes local manufacturing
- Opportunities for clinical trials to generate region-specific
pharmacoeconomic data in the kingdom
- Companies should establish direct relationships with payers to ensure
formulary inclusion and maximum reimbursement
- Saudi Arabia offers generous endowments for research partnerships
HEALTHCARE REGULATORY AND GOVERNMENTAL ORGANIZATIONS
- Key findings
- The healthcare sector in Saudi Arabia consists of a complex network of
regulators
- Gulf Co-operative Council Health Ministers' Council has been a platform
for developing healthcare in the region
- Gulf Central Committee for Drug Registration
- Bulk purchasing of drugs has been a powerful cost-saving mechanism for
Gulf Cooperation Council governments
- The Ministry of Health is currently undergoing a transition towards a more
regulatory role
- Ministry of Health vaccination programs present opportunities for
vaccine manufacturers
- Combating diabetes will be one of the Ministry of Health' s key
regulatory roles
- Improving primary healthcare through family physicians
- The Saudi Food and Drug Authority' s role is to improve regulatory and
approval processes
- Drug approval is relatively straightforward in Saudi Arabia
- Concerns over intellectual property protection has placed Saudi Arabia
on the PhRMA Priority Watch List for 2009
- The Saudi national drug code is the first step in the development of a
unified healthcare management system in the kingdom
- The formation of the Council of Cooperative Health Insurance has
strengthened development of the insurance industry
- Future roles of the Council of Cooperative Health Insurance
PRICING AND REIMBURSEMENT IN SAUDI ARABIA
- Key findings
- Evolving pricing and reimbursement strategies in Saudi Arabia are required
to control healthcare expenditure
- The Ministry of Health controls drug prices in Saudi Arabia
- Price adjustments were enacted by the Ministry of Health in 2008
- New SFDA recommendations for drug pricing guidelines proposed
- Newly proposed changes to the common pricing criteria
- Pricing guidelines for innovative drugs before and after patent expiry
- Pricing guidelines for generic drugs
- Proposed changes to the pricing of locally manufactured second branded
drugs encourage contract manufacturing agreements
- Pricing guidelines for drugs with more than one active ingredient
- Saudi Food and Drug Authority recommends maximum price discounts on
drugs with larger packaging size or dose strength
- Additional new proposals submitted by the SFDA
- The use of pharmacoeconomic evaluations will change the face of Saudi drug
reimbursement
- Pharmacoeconomic evaluations are used globally
- Pharmacoeconomics is sporadically used in Saudi Arabia presently
- Saudi Arabia plans to integrate healthcare management centered around
pharmacoeconomics
BIBLIOGRAPHY
- Journals and online articles
TABLES
- Table: Saudi Arabia: health economics indicators, 2009
- Table: Saudi hospital statistics, 2005 - 06
- Table: Forecast of Saudi private sector hospital market revenues, 2006 -
2015
- Table: Comparison of Saudi Arabia' s basic insurance plan (CCHI) with Abu
Dhabi' s basic insurance plan (HAAD)
- Table: Top 10 pharmaceutical products in the retail market in Saudi
Arabia, 2008
- Table: Detailed procedures in applications for marketing authorization
from the Saudi Food and Drug Authority
- Table: Performance targets for Marketing Authorization Applications by the
Saudi Food and Drug Authority
- Table: Proposed price reductions for package sizes and doses
- Table: List of 30 reference countries used by Saudi Arabia to price drugs
- Table: Exchange rates, 2009
FIGURES
- Figure: Projected population growth in Saudi Arabia, 2000 - 2015
- Figure: Deaths in Saudi Arabia by cause, all age groups, 2002
- Figure: Distribution of health service provision by region in Saudi
Arabia, 2009
- Figure: Division of public and private expenditure on healthcare in Saudi
Arabia, 2006
- Figure: The Saudi health system in comparison with selected pharmaceutical
markets, 2009
- Figure: Healthcare service provision, by hospital beds, Saudi Arabia, 2005
- Figure: Shortcomings of the Ministry of Health in Saudi Arabia, 2009
- Figure: Private pre-paid plans and out-of-pocket expenditure as a
percentage of private expenditure on healthcare in Saudi Arabia, 2002 - 06
- Figure: Implementation of mandatory health insurance in Saudi Arabia, 2009
- Figure: Comparison of the effect of the cooperative health insurance
reforms on Saudi residents seeking treatment at public and private providers
- Figure: Number of insured individuals since the implementation of
cooperative health insurance in Saudi Arabia, Q3 2006 - Q2 2008
- Figure: Saudi health insurance market growth, 2005 - 07
- Figure: Proposed direct relationship between insurers and pharmaceuticals
in Saudi Arabia, 2009
- Figure: Growth of the Saudi Arabian pharmaceutical market, 2000 - 06
- Figure: Top 8 pharmaceutical exporting countries to Saudi Arabia, 2006
- Figure: Drug sales in the public and private pharmaceutical market in
Saudi Arabia, 2007
- Figure: Proportion of physicians who feel pressured by patients to
prescribe generic or branded drugs, 2008
- Figure: Physicians' source of information about generic alternatives
versus branded drugs
- Figure: Proportion of physicians who support generic drug substitution,
2008
- Figure: Saudi retail pharmacy sales by ATC class, 2007 - 08
- Figure: Retail sales and growth of top 10 pharmaceutical companies in
Saudi Arabia, 2007 - 08
- Figure: Leading domestic retail pharmaceutical manufacturers in Saudi
Arabia, 2008
- Figure: Relationship between regulators, payers, providers, users, and
suppliers, Saudi Arabia, 2009
- Figure: Six main components of Balsam project in Saudi Arabia
- Figure: Marketing Authorization process for generics, New Chemical
Entities, biologics and orphan drugs
- Figure: The 11-digit Saudi National Drug Code
- Figure: Future challenges and strategy of the Council of Cooperative
Health Insurance
- Figure: Global pricing and reimbursement strategies, 2009
- Figure: Profit margins for drugs in Saudi Arabia, 2004
- Figure: Comparison of retail drug prices in Saudi Arabia versus the United
Arab Emirates, 2009
- Figure: Revised common pricing criteria proposed by the Saudi Food and
Drug Authority, 2009
- Figure: Revised pricing guidelines for innovative drugs in Saudi Arabia
- Figure: Current and proposed new pricing guidelines for generic drugs in
Saudi Arabia
- Figure: Suggestions and rationale for the pricing of generics in Saudi
Arabia
- Figure: Suggestions and rationale for the pricing of drugs under license
in Saudi Arabia
- Figure: Pricing guidelines for drugs with more than one active ingredient
in Saudi Arabia
- Figure: Proposed healthcare management system in Saudi Arabia, 2009
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