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Market Research Report

Emerging Markets Series: The Pharmaceutical Market of Saudi Arabia

Published by Datamonitor Contact us : +1-860-674-8796
Published 2009/06 Content info 123 pages
Product code DC90338
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Description TOC

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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