Indian Firms Explore Opportunities in Saudi Arabia’s Pharmaceutical Market

Indian pharmaceutical companies are actively exploring opportunities in Saudi Arabia, which boasts an US$8.9 billion pharmaceutical market.

By Melissa Cyrill

India’s pharmaceutical exports account for just 3-4 percent in the Saudi pharmaceutical market, which is governed by stringent regulatory authorities, leading to lengthy drug approval processes.

According to Sudarshan Jain, Secretary-General of the Indian Pharmaceutical Alliance (IPA), an organization representing the pharmaceutical industry, the Saudi kingdom is eager to procure pharmaceutical products from India that are manufactured in US Food and Drug Administration (USFDA)-approved or other facilities approved by the country’s regulatory bodies. The members of the Indian Pharmaceutical Alliance represent 60 percent of India’s domestic market and contribute to around 80 percent of its pharmaceutical exports.

Indian entities are now exploring opportunities to establish manufacturing units in Saudi Arabia or collaborate with local distributors in the market. Jain believes that India can serve as a reliable source of quality-assured drugs to fulfill Saudi Arabia’s medication needs.

Just recently, the Saudi Food and Drug Authority (SFDA) approved seven manufacturing facilities belonging to Venus Remedies with the good manufacturing practices (GMP) certification.

The SFDA’s certification to Venus Remedies covers pre-filled Enoxaparin syringes and general injection facilities, along with renewed approval for Cephalosporin and Carbapenem antibiotics and liquid and lyophilized oncology drugs. Venus Remedies is reportedly ranked among the world’s top 10 fixed-dosage injectable manufacturers, and employs a fully automated robotic PFS (Prefilled Syringe) machine to ensure quality. The GMP certification encompasses small-volume injectables, dry-powder vials, liquid vials and ampoules, and lyophilized vials across three more facilities.

Having been present in the Saudi market for over a decade, Venus Remedies say they have a pipeline of 10-15 drugs that they seek to launch in the near term, per reporting in the Business Standard.

Glenmark Pharmaceuticals is among other major Indian companies with a significant presence in Saudi Arabia and actively interested in scaling up prospects. According to V S Mani, executive director and global chief finance officer of Glenmark Pharmaceuticals, the company launched their first branded specialty product, Ryaltris, aiming to strengthen their position in the region.

Outlook

Overall, Saudi Arabia has a high per capita health spend. In 2022, the pharmaceutical market in Saudi Arabia was valued at around US$8.9 billion. Additionally, the vaccine and biologics segment in Saudi Arabia accounts for roughly US$2.3 billion, recording an approximate 17 percent cumulative growth rate.

Access to the Saudi market would be immensely valuable to Indian pharmaceutical players as it would further open potential in the Organisation of Islamic Cooperation countries, whose 57 countries collectively boast a market size of US$130 billion. Moreover, the SFDA’s GMP certification is considered a benchmark in the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) countries – and therefore attractive to Indian pharmaceutical enterprises.

Industry experts believe there’s an opportunity for Indian pharmaceutical firms to establish full-scale local production of complex generics in Saudi Arabia. With India boasting the highest number of USFDA-approved sites outside the United States, streamlining site approvals and addressing pricing issues could position India as a major supplier to Saudi Arabia.

In September 2023, the Saudi-India Invest Forum was held on the sidelines of the State Visit of Mohammed bin Salman bin Abdulaziz Al Saud to India for the Leaders’ Summit of the bilateral Strategic Partnership Council. Over 500 companies from India and Saudi Arabia attended, marking the first formal investment symposium between the two countries. Potential investment collaborations were outlined in food processing, logistics, healthcare, renewable energy, skill development, space, ICT, and startups.

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