Middle Eastern Public-Sector Health Care Markets

The combined public-sector drug market for Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Turkey and the United Arab Republic was worth $1 billion in 1995, reports IMS Pharma Strategy group's annual Middle East Barometer.

Public-sector markets in these countries vary significantly, from 60% of the total in Kuwait, Oman and Qatar to under 20% in Egypt and Syria, but market share can disguise absolute market size, says the report. For example in Saudi Arabia, where the public sector has declined recently, these sales are still worth around $210 million a year, and Turkey's public-sector market, while only 25% of the total, is valued at over $410 million. Therefore, says PSG, companies operating in these markets need to make a strategic decision as to whether to operate in both the public and private sectors, or to focus on only one.

Factors to consider when making such decisions include: - per capita expenditure on drugs; - market composition - branded vs generic; - level of local manufacture; - operating environment ie cost containment, regulatory issues and patient protection; and - prospects for growth.