BMI's Executive Summary

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Bahrain's pharmaceutical market is well developed, but the small size serves to limit its attractiveness to foreign drugmakers. The market was worth an estimated US$58.3mn in 2007 and it should experience GDP-beating growth, driven by a growing non-communicable disease burden and continued reliance on imported patented drugs, to reach US$83.8mn by 2012.

The small market size is generally cited as Bahrain's biggest drawback by pharmaceutical manufacturers. A population of just 800,000 means this problem is unavoidable. However, it is being mitigated by growing integration between members of the Gulf Co-operation Council (GCC). Goods and labour can increasingly flow freely between member states reducing the problems of a small domestic market for drugmakers.

Having said this, BMI maintains its view that pharmaceutical traffic will continue to be predominantly one way – into Bahrain. Domestic manufacturing remains underdeveloped due to limited investment and the population's preference for high-tech treatments, which traditionally require too great an investment for the limited returns promised by the country's small drug market.

The flow of healthcare services should be more balanced. While the government is committed to sending patients abroad for treatment if they can receive better care than at home, heavy investment in the country's health infrastructure continues. In November 2007, it emerged that Bahrain's Ithmaar Bank is to build a US$1.6bn 'health island', which could develop along the same lines as the UAE's Dubai Healthcare City (DHCC). The island will not be operational until at least 2011, but should attract attention from local and domestic patients when it is completed.

For Q108, BMI has overhauled its Business Environment Ratings. Under the new system Bahrain is ranked equal fourth out of 14 Middle East and Africa (MEA) markets surveyed. The strong showing is due to one of the most reliable regulatory environments in the region and a stable country risk outlook.

The country's obesity and diabetes epidemics look set to intensify as the population continues its path towards sedentary lifestyles and Western diets. Consequently, the highest growth should be seen in the cardiovascular and metabolic drug segments. These will maintain the dominance of prescription drugs and in particular patented varieties over the forecast period.

Contents

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Chapter 1 - Executive Summary

Bahrain Pharmaceuticals & Healthcare Industry SWOT

Bahrain Political SWOT

Bahrain Economic SWOT

Bahrain Business Environment SWOT

Chapter 2 - Bahrain: Business Environment Ranking

Table: Business Environment Ranking: Middle East & Africa

Business Environment Ranking

Economics - Long-Term Risk

Politics - Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - Market Summary

Chapter 4 - Regulatory Regime

Pharmaceutical Retail Channels

Intellectual Property Developments

Pricing & Reimbursement Issues

Health Insurance

International Collaboration

Free Trade Agreements

Chapter 5 - Industry Developments

Healthcare Sector

Primary, Secondary And Tertiary Healthcare

Pharmaceutical Expenditure

Strategic Healthcare Goals

Health Profile

HIV/AIDS

Investment & Expansion

Pharmaceutical Sector

Chapter 6 - Industry Forecast Scenario

Overall Market Forecasts

Table: Health Expenditure Forecasts

Key Growth Factors - Industry

Table: Drug Expenditure Forecasts

Key Growth Factors - Macroeconomic

Table: Economic Activity

Prescription Market Forecast

Table - Prescription Drug Market Forecast

OTC Market Forecast

Table - OTC Drug Market Forecast

Generics And Branded Market Forecast

Table: Generics and Branded Market Forecasts

Export/Import Market Forecast

Table - Prescription Drug Market Forecast

Other Healthcare Data Forecasts

Table - Prescription Drug Market Forecast

Key Risks To BMI's Forecast Scenario

Chapter 7 - Competitive Landscape

Novartis

Johnson & Johnson

Merck & Co

Pfizer

GlaxoSmithKline

Sanofi-Aventis

Bahrain Industrial Pharmaceutical Co (Bidapharm)

Yousuf Mahmood Husain Company

Chapter 8 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Pharmaceutical Industry

Chapter 9 - Appendix: Regional Demographic Data

The Long View: Data Over The Economic Cycle (2000-

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Chapter 10 - Country Snapshot: Bahrain Demographic

Section 1: Population

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Consumption And Stratification

Table: Wages per year

Competitive Landscape for Middle East & Africa Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Middle Eastern and African Pharmaceutical & Healthcare Sources

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BMI's Middle Eastern & African Pharmaceutical & Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceutical & healthcare industry associations, chambers of commerce and company reports. Information sources include: