The emerging GCC pharmaceutical market is undergoing a sea change with governments implementing reforms, simplifying regulations and upgrading and expanding healthcare infrastructure to compete with the global pharmaceuticals market. Favourable regulatory policies have attracted foreign participants to the market, intensifying competition among top multinationals and a few local companies.
New analysis from Frost & Sullivan (pharma.frost.com), Strategic Analysis of GCC Pharmaceutical Market Overview and Outlook, finds that the market earned revenues of USD 5.6 billion in 2010 and estimates this to reach USD 10.8 billion in 2020 at a compound annual growth rate (CAGR) of 7.0 per cent. The Pharma Practice at Frost & Sullivan, a Global Growth Partnership Company, is pleased to host an Analyst Briefing (Webinar) on this research service on Thursday, 12th July, 2012 at 12.00 pm. UAE time/ GMT +4.
As imports account for 80 per cent of the GCC pharmaceuticals market, these efforts on part of the governments are vital to enhance local production. Domestic producers focus mainly on the manufacture of generic drugs, but given their high prices, end users tend to lean towards branded drugs.
According to a World Health Organisation (WHO) estimate, drugs in the GCC are priced 13 times higher than the international standard. There is no standardisation in their prices due to the small size of the market and increasing privatisation of the sector.
"The private pharmaceuticals sector in the region favours branded pharmaceuticals and thus, patented drugs dominate the market with around 95.0 per cent share," said Frost & Sullivan Pharma Research Analyst. "While this bodes well for the multinational companies, local manufacturers will be hard pressed to keep pace with the demand for branded drugs."
Governments of GCC countries need to introduce measures to boost domestic manufacturing by engaging with multinational pharmaceutical companies and other stake holders. Their strategies could include offering incentives to new local manufacturers to compete in the growing market while existing participants could be encouraged to introduce improved technologies to survive in the multinational-dominated market.
"GCC governments are trying to reduce their dependence on imports by also entering into joint ventures and licensing deals with multinational pharmaceutical companies," noted Frost & Sullivan Research Analyst. "These initiatives, coupled with the rising incidence of lifestyle diseases in the GCC, are expected to considerably improve the growth rate of the region’s pharmaceutical market."
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Click on the 'Register Here' tab, given above. This will direct you to the launch page of the Analyst Briefing. Press on the 'Attend' button; this will register you for the AB. Once you have saved the HTML page, click on it and save the event to your Calendar page.
Strategic Analysis of GCC Pharmaceutical Market Overview and Outlook is part of the Pharmaceuticals & Biotechnology Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of Contract Research and Manufacturing segment in India. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Strategic Analysis of GCC Pharmaceutical Market Overview and Outlook / P59F-52
Nimisha Iyer, Corporate Communications - Middle East, North Africa and South Asia
P: +91.98200 50519 / F: +91.22.2832 4713 - E: niyer[.]frost.com.