SAUDI ARABIA PHARMACEUTICAL DRUGS MARKET ANALYSIS

The Saudi Arabia  pharmaceutical drugs market is estimated to be valued at US$  12.60 billion in 2023 and is expected to exhibit a CAGR of 7.6% during the forecast period (2023-2030).

Analysts’ Views on the Saudi Arabia  Pharmaceutical Drugs Market:

Saudi Arabia has one of the largest pharmaceutical markets in the Middle East and North Africa (MENA) region. The country's pharmaceutical industry has been steadily growing over the years due to factors like a growing population, increasing healthcare expenditure, and a rising prevalence of chronic diseases. Saudi Arabia has been making efforts to reduce its dependence on imported pharmaceuticals. The government has implemented policies to promote local pharmaceutical manufacturing. This includes incentives for local production and stricter regulations for imported drugs.

Figure 1. Saudi Arabia Pharmaceutical Drugs Market Share (%), By Drug Type, 2023

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Saudi Arabia Pharmaceutical Drugs Market - Drivers

• Key companies focusing on facility expansion for pharmaceutical drugs: The key companies focusing on facility expansion is expected to propel the growth of the Saudi Arabia pharmaceutical drugs market over the forecast period. For instance, in September 2023, Avalon Pharmaceuticals is a biopharmaceutical company,  is set to launch its fourth manufacturing plant in Saudi Arabia, Avalon 4, to foster its growth and expansion plans across the region. Avalon 4 will focus on various forms of complex and high-tech medications such as oncology and general injectables.
• Increasing product launches or approvals by market players: Increasing product launches or approvals by market players are expected to drive the Saudi Arabia  pharmaceutical drugs market growth over the forecast period. For instance, in August 2023, Futura Medical plc, a research and development pharmaceutical company, announced that its distribution partner, Labatec Pharma (Labatec), a privately-owned Switzerland-based pharmaceutical company, had received regulatory approval for MED3000, Futura’s innovative topical, gel-based Erectile Dysfunction (ED) treatment, in the Kingdom of Saudi Arabia.

Figure 2. Saudi Arabia Pharmaceutical Drugs Market Share (%), By Distribution Channel, 2023

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Saudi Arabia Pharmaceutical Drugs Market - Impact of Coronavirus (COVID-19) Pandemic

The global pharmaceutical supply chain faced disruptions due to lockdowns, travel restrictions, and increased demand for certain medicines during the pandemic. This impacted the availability of raw materials, Active Pharmaceutical Ingredients (APIs), and finished pharmaceutical products in Saudi Arabia.

Saudi Arabia, like many other countries, relies on imports for a significant portion of its pharmaceutical products. Disruptions in global transportation and production capacities affected the timely delivery of medicines.

Lockdowns, border restrictions, and health safety measures impacted logistics and distribution channels. This may have led to delays in the transportation and delivery of pharmaceutical products. Therefore, COVID-19 had a negative impact on the Saudi Arabia  pharmaceutical drugs market.

Saudi Arabia Pharmaceutical Drugs Market Segmentation:

The Saudi Arabia pharmaceutical drugs market report is segmented into drug type, product type, application,  and distribution channel

• By drug type, the market is segmented into generic drugs and branded drugs. Out of which, the generic drugs segment is expected to hold a dominant position in the Saudi Arabia pharmaceutical drugs market during the forecast period, and this is attributed to the key players operating in the market focusing on product approvals.
• By product type, the market is segmented into prescription drugs and Over-the-counter (OTC) drugs. Out of which, prescription drugs segment is expected to hold a dominant position in the Saudi Arabia  pharmaceutical drugs market during the forecast period, and this is attributed to the increasing prevalence of chronic diseases.
• By application, the market is segmented into Cardiovascular, Musculoskeletal, Oncology, Anti-infective, Metabolic Disorder, Central Nervous System, Gastrointestinal, Respiratory, Hematology, Dermatology, Ophthalmology, and Others. Out of which, the metabolic disorder segment is expected to hold a dominant position in the Saudi Arabia  pharmaceutical drugs market during the forecast period, and this is attributed to the high prevalence of metabolic disorder.
• By distribution channel, the market is segmented into hospital pharmacies, offline pharmacies, and online pharmacies. Out of which, hospital pharmacies is expected to dominate the market over the forecast period, and this is attributed to increased hospitalization for the treatment of chronic disseases.
• Among all the segmentation, the drug type segment is expected to dominate the market over the forecast period, and this is attributed to increasing inorganic and organic growth strategies adopted by market players for pharamaceutical drugs.

Saudi Arabia Pharmaceutical Drugs Market: Key Developments

• In August 2023, Daewoong Pharmaceutical Co., a South Korea-based pharmaceutical company, announced that it had submitted an application for regulatory approval of its new diabetes treatment drug Envlo tablet (active ingredient: enavogliflozin) to the Saudi Food and Drug Authority (SFDA).
• In June 2022, Astellas Pharma, a global pharmaceutical company, announced the official inauguration of its newly established Scientific and Technical Office in Riyadh. The office opening is part of Astellas’ long-term commitment to the Kingdom and stems from the company’s strong belief in leveraging technology to better serve local patients and communities; and support the local healthcare infrastructure with innovative medicines and treatments.
• In November 2023, BeiGene, a global, science-driven biotechnology company, and NewBridge Pharmaceuticals, a specialty company in the Middle East and North Africa (MENA) regions, announced that BRUKINSA (zanubrutinib) had received approval from the Saudi Food and Drug Authority (SFDA) for the treatment of adult patients with Mantle Cell Lymphoma (MCL) who have received at least one prior therapy.

Saudi Arabia  Pharmaceutical Drugs Market: Key Trends

• Increasing inorganic growth strategies by market players: Increasing inorganic growth strategies, such as partnerships, for pharmaceutical drugs is expected to drive the growth of the Saudi Arabia pharmaceutical drugs market over the forecast period. For instance, in December 2021, Biocon Limited, an innovation-led global biopharmaceutical company, announced a partnership with Tabuk Pharmaceutical Manufacturing Company, a leading pharmaceutical company in the Middle East and North Africa (MENA), to commercialise select speciality products in the Middle East. Under the terms of this agreement, Tabuk Pharmaceuticals will hold the marketing authorization for these products and will be responsible to register, import, and promote them in Saudi Arabia and other Middle East countries.

Saudi Arabia  Pharmaceutical Drugs Market: Restraint

Product recalls: Product recalls of pharmaceutical drugs are expected to hinder the market growth over the forecast period. For instance, the Saudi Food and Drug Authority (SFDA) had issued a decision to recall and suspend the registration of the product (RABEZOLE) for the two registered strengths of 20 mg and 10 mg, (Registration No 95-368-07 and 96-368-07). The products are marketed by Jamjoom Pharmaceuticals, a Saudi Arabia-based pharmaceutical company. The decision was taken as the product was found to be not bioequivalent with the reference product. SFDA stated that bioequivalence study is a study that is conducted according to internationally recognized scientific standards to verify that there are no differences between the generic product (similar) and the reference product in terms of rate and extent to which the Active Pharmaceutical Ingredient (API) becomes available at the site(s) of drug action when used in the same dose.

Key players operating in the market should seek guidance from regulatory experts and consultants who specialize in navigating the complex process of reversing bans. Their insights and experience can be invaluable in crafting a persuasive strategies.

Saudi Arabia Pharmaceutical Drugs Market - Key Players

The major players operating in the Saudi Arabia  Pharmaceutical Drugs market include Pfizer Inc., Sanofi S. A., Daewoong Pharmaceutical Co., GlaxoSmithKline Plc., AstraZeneca Plc, Baxter International Inc., Astellas Pharma, Life Care Group of Pharmacies, Tadawi Pharmacies, Planet Pharmacies (Zahrat Al Rawdah), Al-Safwwa Pharmacy, Al Nahdi Medical, Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO), Tabuk Pharmaceuticals, Hikma Pharmaceuticals PLC, Jamjoom Pharmaceuticals Co., Julphar, Biocon Limited, and BeiGene.

Definition: Pharmaceutical drugs, often simply referred to as drugs, are substances intended for use in the diagnosis, treatment, cure, or prevention of diseases and medical conditions in humans and, in some cases, animals. They are also used to alleviate symptoms, manage health conditions, or modify physiological processes for a specific therapeutic purpose.