In BMI's updated Business Environment Ratings (BER) for Q410, Saudi Arabia is ranked fourth out of the 19 Middle East and African markets surveyed, having dropped a place in relation to the previous quarter. Globally, it ranks 38th of the 83 countries surveyed by BMI. Saudi Arabia's score is largely supported by the country's wealth ' and thus its preference for branded drugs ' and a sizeable population, which is expected to exceed 30mn by 2014 (up from some 27mn presently). The value of Saudi Arabia's pharmaceutical market, calculated to be worth SAR10.39bn (US$2.77bn) at consumer prices in 2009, is forecast to post a compound annual growth rate (CAGR) of 6.52% through to 2014, when the market will reach a value of SAR14.25bn (US$3.80bn). Annual growth rates over the subsequent five years are expected to decrease under the negative influences of patent expirations, pricing controls and the increased focus on the use of generics and domestically-produced medicines, producing a cumulative 2009-2019 CAGR of 4.65%. Drivers of pharmaceutical volumes will be an increasing and ageing population, as well as the rising prevalence of major 'civilisation' diseases such as diabetes and cardiovascular problems, which require long-term treatment. For example, in order to address alarming rates of obesity, the Ministry of Health banned the sale of soft drinks within the hospital sector in June 2010, with the decision closely following a ban on the sale of fizzy soft drinks in schools. The state is, however, looking to shift some of its financial responsibility for healthcare onto the private sector, mandating private health insurance coverage for expatriates, for example. This process is expected to accelerate in the coming years, although the authorities will also be seeking to encourage investment in the local pharmaceuticals industry, with the aim of boosting domestic production. Nevertheless, given that the Saudi Arabian economy is expected to perform well in the coming years, state investment into healthcare infrastructure will continue, thus working to boost the volumes of services and products used. Foreign players also remain highly interested in the promising Saudi Arabian healthcare sector, with an American delegation recently visiting to discuss investment opportunities. However, the rapidly expanding population represents a challenge, not only from a medical provision point of view. The United Nations (UN) estimates that around half of the Saudi population is aged 25 years old or younger, which poses a substantial risk in terms of the government's ability to provide jobs and housing as well as maintain living standards. Therefore, the presence of this generation of underemployed young men, who have become accustomed to having most of their needs met by the government, could be politically explosive going forward. Although Saudi Arabia has embarked upon a China-style path of economic reform without political reform, the lack of democracy also continues to stand in the way of economic development.

1. Find Industry reports, Company profiles
ReportLinker and Market Statistics
>> Get this Report Now by email!
Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2010
Published on September 2010
Report Summary
In BMI's updated Business Environment Ratings (BER) for Q410, Saudi Arabia is ranked fourth out of the 19 Middle East and African
markets surveyed, having dropped a place in relation to the previous quarter. Globally, it ranks 38th of the 83 countries surveyed by
BMI. Saudi Arabia's score is largely supported by the country's wealth ' and thus its preference for branded drugs ' and a sizeable
population, which is expected to exceed 30mn by 2014 (up from some 27mn presently).
The value of Saudi Arabia's pharmaceutical market, calculated to be worth SAR10.39bn (US$2.77bn) at consumer prices in 2009, is
forecast to post a compound annual growth rate (CAGR) of 6.52% through to 2014, when the market will reach a value of
SAR14.25bn (US$3.80bn). Annual growth rates over the subsequent five years are expected to decrease under the negative
influences of patent expirations, pricing controls and the increased focus on the use of generics and domestically-produced
medicines, producing a cumulative 2009-2019 CAGR of 4.65%. Drivers of pharmaceutical volumes will be an increasing and ageing
population, as well as the rising prevalence of major 'civilisation' diseases such as diabetes and cardiovascular problems, which
require long-term treatment. For example, in order to address alarming rates of obesity, the Ministry of Health banned the sale of soft
drinks within the hospital sector in June 2010, with the decision closely following a ban on the sale of fizzy soft drinks in schools.
The state is, however, looking to shift some of its financial responsibility for healthcare onto the private sector, mandating private
health insurance coverage for expatriates, for example. This process is expected to accelerate in the coming years, although the
authorities will also be seeking to encourage investment in the local pharmaceuticals industry, with the aim of boosting domestic
production. Nevertheless, given that the Saudi Arabian economy is expected to perform well in the coming years, state investment
into healthcare infrastructure will continue, thus working to boost the volumes of services and products used. Foreign players also
remain highly interested in the promising Saudi Arabian healthcare sector, with an American delegation recently visiting to discuss
investment opportunities.
However, the rapidly expanding population represents a challenge, not only from a medical provision point of view. The United
Nations (UN) estimates that around half of the Saudi population is aged 25 years old or younger, which poses a substantial risk in
terms of the government's ability to provide jobs and housing as well as maintain living standards. Therefore, the presence of this
generation of underemployed young men, who have become accustomed to having most of their needs met by the government, could
be politically explosive going forward. Although Saudi Arabia has embarked upon a China-style path of economic reform without
political reform, the lack of democracy also continues to stand in the way of economic development.
Table of Content
Executive Summary ... 5
SWOT Analysis .... 6
Saudi Arabia Pharmaceuticals And Healthcare SWOT ... 6
Saudi Arabia Political SWOT ...... 7
Saudi Arabia Economic SWOT ... 8
Saudi Arabia Business Environment SWOT ...... 8
Pharmaceutical Business Environment Ratings ...... 9
Table: Middle East And Africa ' Regional Pharmaceutical Business Environment Ratings, Q410 . 9
Rewards ... 10
Risks . 11
Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2010 Page 1/5

2. Find Industry reports, Company profiles
ReportLinker and Market Statistics
Saudi Arabia ' Market Summary .. 12
Regulatory Regime . 13
Recent Regulatory Developments ...... 14
Regional Regulatory Developments ... 15
Free Trade Agreements. 16
Intellectual Property Developments ... 17
IP Deficiencies 18
Counterfeit Drugs .. 20
OTC Drug Market .. 20
Pricing and Reimbursement Issues .... 20
Pricing System Reform .. 21
Price Cuts 22
Tendering Procedures ... 23
Industry Trends and Developments .... 24
Epidemiology .. 24
Bird and Swine Influenza ..... 26
HIV/AIDS . 27
Recent Public Health Developments .. 28
Healthcare Sector .. 29
Healthcare Professionals ..... 31
Primary Healthcare Provision .... 32
Secondary Healthcare Provision 32
Recent Healthcare Provision Developments .... 33
Health Insurance ... 34
Recent Health Insurance Developments .... 36
Pharmaceutical Distribution Sector... 36
Table: Saudi Arabian Drug Distribution Firms ...... 38
Research and Development .. 38
Medical Device Sector .. 39
Recent Medical Devices Developments ..... 40
Industry Forecast Scenario .... 41
Pharmaceutical Market Forecast ...... 41
Key Growth Factors ' Industry... 43
Key Growth Factors ' Macroeconomic .... 44
Table: Saudi Arabia - Economic Activity, 2007-2014 .... 46
Prescription Drug Market Forecast ... 47
Patented Drug Market Forecast . 49
Generic Drug Market Forecast ... 50
OTC Medicine Market Forecast . 52
Medical Device Market Forecast 54
Pharmaceutical Trade Forecast . 55
Other Healthcare Data Forecasts ...... 57
Key Risks to BMI Forecasts . 58
Competitive Landscape .. 59
Pharmaceutical Industry ...... 59
Table: Saudi Arabia ' Leading Pharmaceutical Companies by Sales . 60
Foreign Industry .... 60
Domestic Industry .. 61
Recent Pharmaceutical Company Developments .... 62
Company Profiles ..... 64
Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2010 Page 2/5

3. Find Industry reports, Company profiles
ReportLinker and Market Statistics
Indigenous Company Profiles ... 64
Saudi Pharmaceutical Industries & Medical Appliances Corp (SPIMACO) ..... 64
Saudi Arabian Japanese Pharmaceutical (SAJA) ... 67
TABUK Pharmaceutical Manufacturing ... 69
Al Jazeera Pharmaceutical Industries (JPI) .... 72
Multinational Company Profiles ...... 74
GlaxoSmithKline .... 74
Novartis ... 76
Merck & Co .... 78
Pfizer 80
Sanofi-Aventis . 82
Country Snapshot: Saudi Arabia Demographic Data .... 83
Section 1: Population .... 83
Table: Demographic Indicators, 2005-2030 .... 83
Table: Rural/Urban Breakdown, 2005-2030 ... 84
Section 2: Education and Healthcare 84
Table: Education, 2003-2005 ..... 84
Table: Vital Statistics, 2005-2030 ...... 84
Section 3: Labour Market and Spending Power...... 85
Table: Employment Indicators, 1999-2006 ...... 85
Table: Consumer Expenditure, 2000-2012 (US$) ... 85
BMI Methodology ..... 86
How We Generate Our Pharmaceutical Industry Forecasts ...... 86
Pharmaceuticals Business Environment Ratings .. 87
Risk/Reward Ratings Methodology .. 87
Ratings Overview . 87
Table: Pharmaceutical Business Environment Indicators .... 88
Weighting . 89
Table: Weighting Of Components ...... 89
Sources .. 89
Forecast Tables . 90
Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2010 Page 3/5

4. Find Industry reports, Company profiles
ReportLinker and Market Statistics
Fax Order Form
To place an order via fax simply print this form, fill in the information below and fax the completed form to:
Europe, Middle East and Africa : + 33 4 37 37 15 56
Asia, Oceania and America : + 1 (805) 617 17 93
If you have any questions please visit http://www.reportlinker.com/notify/contact
Order Information
Please verify that the product information is correct and select the format(s) you require.
Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2010
Product Formats
Please select the product formats and the quantity you require.
Digital Copy--USD 530.00 Quantity: _____
Contact Information
Please enter all the information below in BLOCK CAPITALS
Title: Mr Mrs Dr Miss Ms Prof
First Name: _____________________________ Last Name: __________________________________
Email Address: __________________________________________________________________________
Job Title: __________________________________________________________________________
Organization: __________________________________________________________________________
Address: __________________________________________________________________________
City: __________________________________________________________________________
Postal / Zip Code: __________________________________________________________________________
Country: __________________________________________________________________________
Phone Number: __________________________________________________________________________
Fax Number: __________________________________________________________________________
Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2010 Page 4/5

5. Find Industry reports, Company profiles
ReportLinker and Market Statistics
Payment Information
Please indicate the payment method, you would like to use by selecting the appropriate box.
Payment by credit card Card Number: ______________________________________________
Expiry Date __________ / _________
CVV Number _____________________
Card Type (ex: Visa, Amex…) _________________________________
Payment by wire transfer Crédit Mutuel
RIB : 10278 07314 00020257701 89
BIC : CMCIFR2A
IBAN : FR76 1027 8073 1400 0202 5770 189
Payment by check UBIQUICK SAS
16 rue Grenette – 69002 LYON, FRANCE
Customer signature:
Please note that by ordering from Reportlinker you are agreeing to our Terms and Conditions at
http://www.reportlinker.com/index/terms
Please fax this form to:
Europe, Middle East and Africa : + 33 4 37 37 15 56
Asia, Oceania and America : + 1 (805) 617 17 93
Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2010 Page 5/5