Naperville, IL -- (SBWIRE) -- 01/17/2013 -- Healthcare, Regulatory and Reimbursement Landscape - Saudi Arabia. An essential source of information and analysis on the Saudi Arabian healthcare, regulatory, and reimbursement landscape, this report identifies the key trends in the healthcare market, and provides insights on the demographic, regulatory, and reimbursement landscape, and healthcare infrastructure. Most importantly, the report provides valuable insights into the trends and segmentation of the pharmaceutical and medical device markets. In 2011, the population of Saudi Arabia was approximately 28.17 million, growing at an annual rate of 3.8%. The mortality rate was almost steady at approximately four deaths per 1,000 population due to advances in the healthcare infrastructure and medical and diagnostic services. The value of the pharmaceutical market was estimated at $3.5 billion in 2011, and is expected to reach $5.6 billion by 2020, increasing at a projected Compound Annual Growth Rate (CAGR) of 5.4%. The medical device market was worth approximately $1.5 billion in 2011, and is expected to reach $2.3 billion by 2020, increasing at a projected CAGR of 4.5%.
The positive trends in the healthcare market of Saudi Arabia can be attributed primarily to -
- Increasing awareness of health and well-being in society
- Increasing affordability and compliance
- Strategic move towards compulsory health insurance
- An overview of the pharmaceutical and medical device markets, including size, segmentation, and key drivers and barriers
- Profiles and SWOT analyses of the major players in the pharmaceutical and medical device markets. The key players covered for the pharmaceutical market are GlaxoSmithKline (GSK), Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO), Pfizer, Tabuk, and Novartis; the key players covered for the medical device market are Siemens Healthcare, F. Hoffmann-La Roche, GE Healthcare, Abbott Laboratories, and Philips Healthcare.
- Insightful review of the reimbursement and regulatory landscape, with details of the reimbursement process, regulatory agencies, and market authorization processes for new drug and medical devices
- Detailed analysis of the political and economic environment, including economic indicators, demographics, healthcare infrastructure, and healthcare expenditures
- An overview of the opportunities and challenges for growth in the healthcare market
Saudi Arabia Improves National Healthcare
The new report shows that Saudia Arabia is attempting to seize back power over this industry which has historically been controlled by expatriates. The government is attempting to change patent regulation, drug approvals, and employment law, in order to promote local pharmaceutical and medical devices companies.
Saudi Arabia is largely dependent on an expatriate workforce, hiring just only one national for every 13 foreign workers. However, the government has now initiated employment-generation programs, targeting unemployed Saudi youths in an effort to promote the “indigenization” of the workforce. In January 2012, the government announced plans to create three million new jobs for unemployed Saudis by the end of 2015, with an additional three million jobs by 2030. The government also mandates that companies fill nearly 30% of their staff with Saudis. These initiatives aim to promote saudization in all industries including medical technology and pharmaceuticals.
There has been a recent focus on trying to streamline the pharmaceutical and medical technology industries in the country. In order to do this, the government is working to ease cumbersome regulatory processes and accelerate the approval of pharmaceuticals and medical devices. In 2009, it was estimated that 14% of medicine being sold in Saudi Arabia was fake or counterfeit, and this spurred the creation of the Saudi Food and Drug Authority (SFDA) whose primary role is to control and block the counterfeit medicine market. The SFDA is now responsible for ensuring the safety of food and drugs, as well as the safety of biological and chemical substances. It has set up compulsory standards specifications for these products, whether they are imported or locally manufactured, and has established a convenient online application and registration system for the market authorization procedure, benefitting both local and foreign pharmaceutical companies.
According to World Intellectual Property Organization 2011 annual report, Saudi Arabia registered 147 patents, the most among the Arab countries. Saudi Arabia is fully compliant with the Trade-Related Aspects of Intellectual Property Rights (TRIPS), which helps to bring foreign investments into the country and promotes licensing and manufacturing agreements between multinational proprietary drug producers and local manufacturers.
The pharmaceutical market of the Kingdom of Saudi Arabia, valued at $3.5 billion in 2011, is one of the largest markets in the Middle East, and is the largest among the Gulf Cooperation Council. The market, which is projected to reach $5.6 billion in 2020, will be driven upwards by the increasing burden of chronic diseases, improvements in regulatory guidelines, and launch of new products. Currently, patented drugs capture a dominant position in the Saudi pharmaceutical market; however, government incentives have driven the rapid expansion and adoption of generic medications.
Reasons to buy
- Develop business strategies by understanding the trends shaping and driving the healthcare market in Saudi Arabia
- Drive revenues by understanding the key trends, reimbursement, and regulatory policies, pharmaceutical and medical device market segments, and companies likely to impact the healthcare market in Saudi Arabia in the future
- Formulate effective sales and marketing strategies by understanding the competitive landscape in Saudi Arabia and analyzing the performance of various competitors
- Organize your sales and marketing efforts by identifying the market categories and segments in Saudi Arabia that present the most opportunities for consolidation, investment, and strategic partnerships
- Identify, understand, and capitalize on the opportunities and challenges in the healthcare market in Saudi Arabia
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