Introduction

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.

Scope of this research

• Overview of challenges faced by the Saudi Arabian healthcare system and a review of the healthcare financing system reforms
• Analysis of trends observed in the pharmaceutical sector and the development of the healthcare insurance sector
• Update of healthcare reforms undertaken in the Kingdom and thought-leader insights into future changes to be implemented
• Commercial implications of the reforms for insurers, multinational and domestic pharma companies, supported by Datamonitor strategic recommendations

Research and analysis highlights

Healthcare reforms in Saudi Arabia will increase access to healthcare services and pharmaceuticals as the penetration of cooperative health insurance increases across the Kingdom. Datamonitor forecasts 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.

Increasingly westernized lifestyles have driven up levels of chronic disease, enhancing the need for drug intervention, with lifestyle products dominating the retail market. Many branded drugs despite their off patent status still command market leading sales and positive growth, underlining the preference for branded drugs in the Saudi market.

Key reasons to purchase this research

• Understand the Saudi healthcare market and the strategic implications of future reforms and how these will affect your business
• Identify opportunities for mutually beneficial relationships between your firm and insurers which are becoming increasingly powerful stakeholders
• Gain insight into investment opportunities and create compelling cases for strategic changes in your organization to adapt to the evolving market