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Saudi Arabian pharmaceuticals

Portrait of Morris Hosseini
Senior Partner
Berlin Office, Central Europe
+49 160 744-8497
October 13, 2014

The Saudi pharmaceutical sector is expected to maintain its strong growth momentum. However, a gradual shift towards low-cost generics coupled with stronger market penetration of global pharma players could lead to a redefinition of the competitive landscape.

Currently, domestic pharmaceutical manufacturers account for a relatively small share of the market, currently 18%. While the government supports and encourages the build-up of local value chains, domestic players face two main challenges:

  • Firstly, global pharma giants such as GlaxoSmithKline, Pfizer, Astellas and Sanofi Aventis are entering the market.
  • Secondly, low cost generics are becoming more prevalent.

The Saudi pharmaceutical sector is expected to maintain its strong growth momentum.
The Saudi pharmaceutical sector is expected to maintain its strong growth momentum.

"Consequently, domestic players – manufacturers in particular – must redefine their strategic positioning in the market and assess how to best capitalize on their capabilities in a changing environment", says Morris Hosseini, Partner at Roland Berger.

Key strategic levers for sustaining a competitive value proposition include redesigning value creation architecture, reconfiguring the business model, building brand equity and recalibrating the scope/scale of the activity coverage.

Study

Saudi Arabian pharmaceuticals

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Will domestic players be able to adapt to the industry's changing landscape?

Published October 2014. Available in