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Bahrain Pharmaceuticals and Healthcare Report Q4 2009

http://www.companiesandmarkets.com/Summary-Market-Report/bahrain-pharmaceuticals-and-healthcare-report-q4-2009-162209.asp

Report Summary

From BHD44mn (US$114mn) in 2008, BMI forecasts that Bahrain’s pharmaceutical market will expand to be worth BHD61mn (US$160mn) in 2018. While the market will remain small in absolute terms, rapid value growth, representing a compound annual growth rate (CAGR) of 6.8% and a favourable political economic and business environment mean that the country is likely to increasingly feature in drugmakers’ Middle East and Africa (MEA) strategies. In BMI’s Q409 Business Environment Rating for the 17 countries of the MEA region, Bahrain ranks eighth. The potential returns from the market are constrained by the island’s population of just 1mn. However, a strong regulatory structure and stable political climate create a relatively low-risk business environment. The Gulf Co-operation Council (GCC) member states already work together on a number of regulatory fronts and hope to deepen this collaboration in the coming years. At present, the GCC operates a unified import tariff system, as well as a system of collective tenders for group purchasing of drugs and vaccines. These tenders are an important way for multinational drugmakers to supply the Bahraini market. Healthcare is provided free of charge by the government to all citizens of Bahrain. Although, along with a number of other Gulf states, Bahrain has recently excluded non-Bahrain nationals from the public healthcare system. As a result, expatriates have to purchase private insurance – either personally or through their employers – or pay out-of-pocket for their treatments. Demand for healthcare is growing rapidly due to a combination of factors including population growth, an ageing population, and a higher prevalence of chronic disease. According to a Ministry of Health study published in 2008, these three factors alone will cause healthcare expenditure to increase by around 500% over the next 20 years to reach BHD1.15mn in 2025, assuming no changes in the type of care provided. Private healthcare is likely to see considerable growth over the coming years. The artificial ‘health island’ known as Dilmunia, off the north coast of Bahrain should become a focal point for the growing private healthcare industry in the country and provide a major draw for health tourists from overseas. The project is progressing on schedule, with land reclamation work completed at the beginning of June 2009. The first phase of the project is expected to be completed in 2012, and the second phase in 2015.

Table of Contents

Executive Summary .5
SWOT Analysis6
Bahrain Pharmaceuticals And Healthcare Industry SWOT . 6
Bahrain Political SWOT .. 7
Bahrain Economic SWOT. 8
Bahrain Business Environment SWOT 8
Pharmaceutical Business Environment Ratings 9
Table: Middle East And Africa Pharmaceutical Business Environment Ratings for Q409 9
Limits of Potential Returns .. 9
Risks to Realisation of Returns 10
Bahrain – Market Summary..12
Regulatory Regime.13
Recent Regulatory Developments .. 13
GCC Healthcare Collaboration.. 14
Intellectual Property Developments.. 16
Pricing and Reimbursement Regime. 16
Regional Price Harmonisation 17
Free Trade Agreement with the US 18
Other Free Trade Agreements . 19
Industry Developments21
Epidemiology 21
Table: Leading Causes Of Death In Bahrain, 2002 .. 23
HIV/AIDS 23
Healthcare Sector .. 23
Primary, Secondary and Tertiary Healthcare.. 24
Health Insurance 25
Table: National Health Insurance Scheme Breakdown 26
Strategic Healthcare Goals 27
Healthcare Sector Investment .. 30
Features Of Dilmunia Health Island. 31
Pharmaceutical Sector. 31
Pharmaceutical Retail . 32
Research and Development 32
International Collaboration.. 33
Medical Devices.. 34
Industry Forecast Scenario 36
Overall Market Forecast. 36
Table: Bahrain - Drug Expenditure Indicators, Historical Data and Forecasts.. 37
Key Growth Factors – Industry 38
Table: Bahrain - Health Expenditure Indicators, Historical Data and Forecasts .. 39
Key Growth Factors – Macroeconomic .. 40
Table: Bahrain – Economic Activity, 2006-2013 42
Prescription Market Forecast .. 43
Table: Bahrain – Prescription Market Indicators, Historical Data and Forecasts (US$mn unless otherwise indicated) 44
Patented Market Forecast.. 45
Table: Bahrain – Prescription Drug Market Indicators, Historical Data and Forecasts. 45
Generics Drug Market Forecast . 46
Table: Bahrain – Generics Drug Market Indicators, Historical Data and Forecasts 47
OTC Market Forecast.. 48
Table: Bahrain - OTC Market Indicators, Historical Data and Forecasts (US$mn unless otherwise stated) 49
Pharmaceutical Trade Forecast . 50
Table: Bahrain – Pharmaceutical Trade Balance Indicators, Historical Data and Forecasts (US$mn) . 51
Medical Devices.. 52
Table: Bahrain – Medical Device Market Indicators, Historical Data and Forecasts.. 52
Other Healthcare Data Forecasts.. 53
Table: Bahrain – Other Health Indicators, Historical Data and Forecasts, 2003-2013.. 54
Key Risks to BMI’s Forecast Scenario. 55
Competitive Landscape..56
Company Monitor57
Multinational Companies.. 57
Novartis .. 57
Johnson & Johnson (J&J) . 59
Merck & Co .. 61
Pfizer 62
GlaxoSmithKline. 63
GlaxoSmithKline. 64
Indigenous Companies 65
Bahrain Industrial Pharmaceutical Co (Bidapharm) 65
Al-Jishi Corporation. 66
Behzad Medical Establishment 67
Yousuf Mahmood Husain Company.. 68
Country Snapshot: Bahrain Demographic Data ..69
Section 1: Population 69
Table: Demographic Indicators, 2005-2030. 69
Table: Rural/Urban Breakdown, 2005-2030 70
Section 2: Education and Healthcare .. 70
Table: Education 70
Table: Vital Statistics, 2005-2030.. 70
Section 3: Labour Market and Spending Power . 71
Table: Employment Indicators. 71
Table: Consumer Expenditure, 1999-2004 (US$) .. 71
Table: Average Annual Wages. 71
BMI Methodology 72
How We Generate Our Pharmaceutical Industry Forecasts 72
Pharmaceutical Business Environment Ratings Methodology 73
Ratings Overview 73
Table: Pharmaceutical Business Environment Indicators . 74
Weighting 75
Table: Weighting Of Components.. 75
Sources .. 75