Saudi Arabia’s pharmaceutical market set to hit $6 billion by 2020 as nation’s wealth increases
![](/46/pdcnewsitem/04/17/32/GDnewlogo.jpg)
This impressive expansion can be attributed to a growing population, rising wealth levels, and demand for patented pharmaceutical products, says GlobalData.
The pharmaceutical market in Saudi Arabia is set to grow from $4.5 billion in 2015 to $6 billion by 2020, representing a compound annual growth rate (CAGR) of 7.4%, according to research and consulting firm GlobalData.
The company’s latest report — CountryFocus: Healthcare, Regulatory and Reimbursement Landscape - Saudi Arabia — states that Saudi Arabia is one of the largest pharmaceutical markets in the Middle East, and its impressive expansion can be attributed to a growing population, rising wealth levels, and demand for patented pharmaceutical products.
Adam Dion, GlobalData’s Senior Analyst covering Industry Dynamics, explains: “Due to the increase of chronic diseases and Saudi Arabia’s rising wealth, there is a huge demand for patented products, representing a significant opportunity for market players. Indeed, this has spurred multi-national companies to set up manufacturing plants in Saudi Arabia, either independently or through joint ventures.”
Saudi Arabia is planning one of the largest healthcare expansions in the world, with the Ministry of Health planning to spend $18.5 billion annually over the next 10 years. Its investment plan is to improve domestic manufacturing of medical devices and pharmaceuticals, which would create job opportunities and enhance the country’s knowledge pool. To meet demand, strong private sector partnerships would need to be established.
Dion continues: “Domestic pharmaceutical manufacturers, which account for only 18% of the market at present, face challenges from the increasing prevalence of low-cost generics and the entrance of global pharma giants such as GlaxoSmithKline, Pfizer, Astellas, and Sanofi.
“Domestic manufacturing companies need to focus more on their marketing and sales, and create beneficial partnerships with multi-national companies through joint ventures, acquisitions and license agreements.”
GlobalData’s report also states that government expenditure on health services and social development was $20.8 billion in 2015, an increase of 10.1% over 2014.This was directed towards the construction of new hospitals and reference laboratories for blood banks, medical centers and polyclinics, as well as social development projects, such as sport clubs and rehabilitation centers.
“The government’s plans to improve the quality of healthcare services across Saudi Arabia offer ample opportunity for small and medium enterprises across the healthcare sector by developing infrastructure in order to attract foreign investment,” Dion concludes.
Related News
-
News Ophthalmologic drug product Eylea faces biosimilar threats after FDA approvals
Regeneron Pharmaceutical’s blockbuster ophthalmology drug Eylea is facing biosimilar competition as the US FDA approves Biocon’s Yesafili and Samsung Bioepis/Biogen’s Opuviz. -
News ONO Pharmaceutical expands oncology portfolio with acquisition of Deciphera
ONO Pharmaceutical, out of Japan, is in the process of acquiring cancer-therapy maker Deciphera Pharmaceuticals for US$2.4 billion. -
News First offers for pharma from Medicare drug price negotiations
Ten high-cost drugs from various pharma manufacturers are in pricing negotiations in a first-ever for the US Medicare program. President Biden’s administration stated they have responded to the first round of offers. -
News Eli Lilly’s Zepbound makes leaps and bounds in weight-loss drug market
In the last week, Eli Lilly has announced their partnership with Amazon.com’s pharmacy unit to deliver prescriptions of Zepbound. Zepbound has also surpassed Novo Nordisk’s Wegovy for the number of prescriptions for the week of March 8.&nbs... -
News Chasing new frontiers at LEAP – The National Biotechnology Strategy Keynote
On the third day of LEAP (4–7 March 2024, Riyadh Exhibition and Convention Centre, Malham, Saudi Arabia) the CPHI Middle East team hosted the Future Pharma Forum, to set the scene for an exciting new event for the pharma community, coming to Riya... -
News Pfizer maps out plans for developing new oncology therapeutics by 2030
Pfizer dilvulges plans to investors around growing their cancer portfolio, and the drugs they will be focusing on developing after their aquisition of Seagen in 2023. -
News Generics threat to Merck’s Bridion as Hikma seeks pre-patent expiry approval
Merck has disclosed they received notice from Hikma Pharmaceuticals for seeking a pre-patent expiry US FDA approval for Hikma’s generic version of Merck’s Bridion. -
News Bernie Sanders vs Big Pharma - the latest on drug price negotiations
In a hearing in front of the US Senate, three of the biggest pharmaceutical companies in America are challenged over exorbitant prescription drug prices, with Sanders claiming their actions are limiting the population's access to affordable healthc...
Position your company at the heart of the global Pharma industry with a CPHI Online membership
-
Your products and solutions visible to thousands of visitors within the largest Pharma marketplace
-
Generate high-quality, engaged leads for your business, all year round
-
Promote your business as the industry’s thought-leader by hosting your reports, brochures and videos within your profile
-
Your company’s profile boosted at all participating CPHI events
-
An easy-to-use platform with a detailed dashboard showing your leads and performance