DUBAI, 16 January 2008 — Saudi represents 65 percent of the $2.7 billion GCC pharmaceutical market, Pharma World Holdings — the first 3PL provider within the GCC — said yesterday.
Of the $1.7 billion Saudi market, therapeutic classes make up 80 percent, with systematic hormones making up $291 million, Alimentary T & metabolism represent $260 million, respiratory system comprises $162 million, G.U. system & sex hormones make up $145 million, nervous system covers $128 million, cardio system makes up $121 million and musculo-skeletal system constitutes $111 million, Pharma World said in a statement.
Maher Kheder, business development group director, Pharma World Holdings, said: “These figures only represent the private market, excluding tender business, very encouraging for manufacturers looking to get into the area.”
“Imports represent 80-85 percent of the Saudi market, which is growing astronomically. The beauty of the Pharma World Holdings business model is that it allows manufacturers to enjoy better distribution, with less administration and more cost efficiency, it’s win-win,” he added. The newly established firm brings a track record of Kingdom-specific expertise to the region being a 50/50 venture between Banaja International Group and UAE-based Ithmar Capital Fund I.
Kheder further said “the traditional model of distribution meant foreign manufacturers would supply products through distributors who place and receive orders directly from principal manufacturing facilities.”
“This model lacks flexibility and efficiency for principals and means that they need to find a distributor with excellent regional knowledge to optimize the process. Pharma world aims to bridge this gap between global manufactures and Saudi health care organizations,” he added.
Pharma World Holdings is establishing a distribution and warehousing hub at the JAFZA free zone, just outside of Dubai, which will offer logistical services never before seen in the region. It provides a one-stop 3PL offering for international as well as local manufacturers.
Additionally, the company can handle the return inventory levels and provide outsourcing support for all distribution associated requirements.
