Saudi Arabia pharmaceuticals is driven by various major factors such as population growth, investment in halal pharmaceuticals, decrease in fertility rates, and increase in life expectancy. The market is witnessing increasing investment by major market players and several local and international companies are collaborating with local generic manufacturers. Such factors are expected to facilitate robust, stable, organic growth in Saudi Arabia pharmaceuticals market over the forecast period.
Saudi Arabia pharmaceuticals market is estimated to account for US$ 13,391.2 Mn in terms of value by the end of 2027.
Saudi Arabia Pharmaceuticals Market: Drivers
Increasing investment in halal pharmaceuticals is expected to boost growth of Saudi Arabia pharmaceuticals market. For instance, in July 2018, Saudi Arabia’s Food and Drugs Authority (SFDA) announced plans to launch the world’s largest center for halal food and products that include meat, poultry, other food items, cosmetics, medicines, and medical devices.
Saudi Arabia Pharmaceuticals Market: Opportunities
Compulsory health insurance for expatriates is expected to offer lucrative growth opportunities to players in the market. The Council of Cooperative Health Insurance (CCHI) oversees the private health insurance market. Health insurance is made compulsory for expatriates residing in Saudi Arabia and they represent majority in healthcare polices holding in the health insurance market. Moreover, increasing number of expatriates and mandatory insurance is expected to aid in growth of Saudi Arabia pharmaceuticals market.
Saudi Arabia Pharmaceuticals Market: Restraints
Low investment in R&D activities is expected to hamper growth of the market. For instance, Saudi Arabia was ranked 61st in the Global Innovation Index in 2018, recording a drop of 6 positions from 2017.
The Prescription Products segment in Saudi Arabia pharmaceuticals market was valued at US$ 4,636.6 Mn in 2019 and is expected to reach US$ 10,188.6 Mn by 2027 at a CAGR of 10.3% during the forecast period. Increasing incidence and prevalence of acute and chronic diseases is expected to assist the growth of the segment during the forecasted period.
The Diabetes segment held dominant position in Saudi Arabia pharmaceuticals market in 2019, accounting for 25.3% share in terms of value. Increasing prevalence of diabetes in emerging economies is anticipated to propel the growth of the segment during the forecasted period.
The market is influenced by the Nitaqat system that is focused on increasing employment of Saudi nationals in the private sector.
The market is witnessing withdrawal of generic drugs. For instance, in February 2018, the Saudi Food and Drug Authority (SFDA) announced the withdrawal of two locally approved clopidogrel generic products (Pedovex and Cardlet), owing to failure in demonstrating bioequivalence to the reference product (Plavix).
Saudi Arabia Pharmaceuticals Market: Competitive Landscape
Major players operating in Saudi Arabia pharmaceuticals market include, SPIMACO, Tabuk Pharmaceuticals Manufacturing Co., Julphar, Jamjoom Pharma, GlaxoSmithKline plc., Pfizer Inc., Novartis AG, and Sanofi.
Saudi Arabia Pharmaceuticals Market: Key Developments
October 2019: Eurofarma, a Brazil-based pharmaceutical company, signed a memorandum of agreement with Saudi Industrial Clusters, for investing in Saudi Arabia
August 2019: Julphar recalled a single batch of Laxocodyl suppository (10mg) due to a labeling error on the blister pack
Scope of the report