Executive Summary

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Kuwait's healthcare system is both efficient and effective, and thus attractive to medical tourism, although the country's pharmaceutical industry is limited. In 2006, although the Kuwaiti pharmaceutical market rose by 7% year-on-year (y-o-y)to an estimated US$385mn, the value remains small by global standards. Nevertheless, as the rate of increase over the next five years is forecast to oscillate around the same figure, with the market reaching US$540mn in 2011, the value of prescription and branded drugs has room for further growth. The growth will be driven by demographic factors, as well as by the rising demand for private insurance, with foreign workers being excluded from state coverage.

In the meantime, generics and over-the-counter (OTC) medicines, which presently account for around 15% and 10% of the total market by value, should benefit from the rising need for cost containment in healthcare, in the face of the country's rising and youthful population. Healthcare is presently by and large provided free to all Kuwaiti citizens, but the pressure on public finances will eventually result in a shifting of some financial responsibility away from the state. Moreover, the government is also likely to include more generics on the reimbursed drugs list to the detriment of branded, foreign-made products that already suffer discrimination in terms of public subsidies. However, the wealthy population's traditional preference for branded medicines will ensure their steady growth, although high drug prices in Kuwait are resulting in a growing number of people purchasing healthcare outside the country.

In BMI's adjusted Business Environment Rankings for the Middle East and Africa (MEA) region for Q307, Kuwait remains in the joint sixth place, which it shares with South Africa and Israel. The country's business environment provides limited investment opportunities given the poor intellectual property (IP) protection and widespread counterfeiting. On the other hand, Kuwait's limited domestic manufacturing industry and lack of technological capabilities signify a gap that can be filled by imported medicines, especially in the field of hi-tech products.

Consequently, imports will continue to dominate over the next five years, with cardiovascular, diabetes and similar remedies treating 'civilisation'-type diseases particularly boosted by demographic and epidemiological trends. However, regional harmonisation with other Gulf Co-operation Council (GCC) states may help to mitigate this dependency on imports as well as unify prices, albeit to a limited degree.

Contents

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Chapter 1 - Executive Summary

Chapter 2 - SWOT Analysis

Kuwait Pharmaceuticals & Healthcare Industry SWOT

Kuwait Political SWOT

Kuwait Economic SWOT

Kuwait Business Environment SWOT

Chapter 3 - Kuwait: 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 4 - Market Summary

Chapter 5 - Regulatory Regime

Intellectual Property Developments

Pricing & Reimbursement Issues

Recent Developments

Public Procurement of Medicines

Regional Developments

Chapter 6 - Industry Developments

Health Profile

Healthcare Sector

Primary Care

Secondary Care

Healthcare Insurance

Healthcare Reforms

Pharmaceutical Sector

Recent Developments

Regional Import Agreements

Research and Development

Biotechnology Sector

Chapter 7 - Industry Forecast Scenario

Overall Market Forecasts

Table - Kuwait Health Expenditure Forecasts

Key Growth Factors-Industry

Table - Kuwait Drug Expenditure Forecasts

Key Growth Factors – Macroeconomic

Table: Economic Activity

Prescription Market Forecast

Table - Kuwait Prescription Market Forecasts

OTC Market Forecast

Table – Kuwait OTC Market Forecasts

Generics And Branded Market Forecast

Table - Kuwait Generics Market Indicators – Historical Data & Forecasts

Export/Import Market Forecasts

Table - Kuwait Domestic Production and Imports Forecasts

Table: India's Export of Pharmaceutical Products to the GCC Countires 2001-2005 (US$mn)

Other Healthcare Data

Table - Kuwait Other Healthcare Indicators- Historical Data & Forecasts

Chapter 8 - Competitive Landscape

Chapter 9 - Company Profiles

Novartis

Sanofi-Aventis

Pfizer

GlaxoSmithKline

Merck & Co

Johnson & Johnson

Advanced Technology Company

Bader Sultan & Bros

Chapter 10 - Safwan Trading and Contracting Company

Chapter 11 - BMI Forecast Modelling

How we generate our industry forecasts

Pharmaceutical Industry

Sources

Chapter 12 - Appendix: Regional Demographic Data

The Long View: Data Over The Economic Cycle (2000-2007)

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Chapter 13 - Country Snapshot: Kuwait Demographic Data

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: Employment Indicators

Table: Consumption and Stratification

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: