Saudi Arabia’s pharmaceutical market attracts multinationals

saudi-arabiaJEDDAH – The Saudi Arabian pharmaceutical sector is becoming increasingly attractive for multinationals to enter, driven by the expansion of private healthcare and altering patient demographics and also for domestic generics companies as the government looks to evolve its cost saving strategies, said in its new report on “The Pharmaceutical Market of Saudi Arabia.”

The report noted that healthcare reforms in the Kingdom will increase access to healthcare services and pharmaceuticals as the penetration of cooperative health insurance increases.

Datamonitor forecast this will result in a significant increase in overall expenditure on drugs; however there will be a greater shift towards generics use.

As competition increases, insurers will attempt to increase profits by implementing cost containment measures such as pharmacoeconomic drug evaluations, generic substitution and formulary lists.

However, strong underwriting policies, optimal pricing premiums, and delivering quality care to members will remain critical, the report said.

saudi-pharmaceuticalsFurthermore, changing lifestyles “have driven up levels of chronic disease, enhancing the need for drug intervention, with lifestyle products dominating the retail market,” the report said.

It noted that many branded drugs still command market leading sales and positive growth, underlining the preference for branded drugs in the Saudi market.

In another related report, RNCOS, an industry research firm, said the Saudi Arabian insurance market has emerged as one of the fastest growing insurance industries across the world. While the global economic slowdown has severely hit other industrial sectors, the insurance industry has maintained its growth pace and is expected to grow at a CAGR of 25-30 percent during 2009-2013.

The report titled “Saudi Arabia Insurance Market to 2012,” said protection & savings (life) and health insurance are the fastest growing insurance lines in the country. However, the life and health insurance market still remains largely untapped and offers huge potential for growth in coming years, it pointed out.

The Saudi Arabian government has announced a series of measure to sustain growth in domestic insurance market.

The report included commercial implications of the reforms for insurers, multinational and domestic pharma companies, supported by Datamonitor strategic recommendations
The study also identified opportunities for mutually beneficial relationships between your firm and insurers which are becoming increasingly powerful stakeholders.

The RNCOS report is an outcome of extensive research and detailed study of the insurance sector in Saudi Arabia.

Taking into consideration the recent industry developments and changes in macroeconomic variables amidst the global financial crisis, the report features forecasts for all the important industry aspects like health insurance, protection and savings insurance, motor, property/fire insurance, marine insurance, engineering and aviation insurance.