The Competitive Landscape

Data published recently by Fitch Solutions shows that generic drugs represented 35.4% of the total KSA drug market. Projected to expand to $4.2 billion in 2024 from $2.9 billion in 2019 at a CAGR of 7.9%, the data further states that generic drug sales would constitute ±44.2% of total pharmaceutical expenditure in KSA, or approximately ±$166 per capita.

The Saudi Vision 2030 and National Transformation Plan supports and encourages generic substitution to control costs. This national plan has drawn the attention of Merck Sharp & Dohme and Sanofi among others. The majority of the multinational drug makers in Saudi Arabia are branded manufacturers. These firms continue to strengthen their generic activities by entering into partnerships with local generic drug makers.