Description
The individual project paper should first provide a discussion of the issue of leadership and change in an organization or a unit within an organization. The paper should assess and critically evaluate the different issues or approaches while also providing your own analytical perspectives. Depending on the topic, you and I will decide what your approach to the paper should be. You will be guided through preliminary outlines, detailed outlines to assist you in producing quality work.
You must carefully revise and edit your works before you turn them in. You should be professionally satisfied with your individual and group project papers. The quality should be such that you would be comfortable sharing it with other colleagues or professionals who are knowledgeable on the subject.
Use quotation marks if you are using another author’s language. It is entirely acceptable to use the works of other authors but each work must be acknowledged i.e. you must refer explicitly to the source of the information.
Format:
5-7 pages (excluding references)
Font size: 12 Times New Roman
Spacing: 1.5
minimum references: 5. You can use endnotes or footnotes as a reference.
I uploaded an example of final project please have a look to attachedment before.
Unformatted Attachment Preview
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
Leadership and Change in
Selected Healthcare Cases of Saudi Arabia
Editors
Wan Khairuzzaman Wan Ismail
Rosmini Omar
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
Contents
Saudization of Medical Representatives and Pharmaceutical Industry ……………………………..1
Ahmed Alsamil
Leading Pharmaceutical Industry in Saudi Arabia Post COVID19 ………………………………….7
Ali Ebrahim Alhomaied
Changing Quality Standards for Healthcare Centers in the Absence of Models……………….20
Mohammed Ahmed Mohammed Moafa
Work Digitization Process in contract and procurement administration (Ministry of Health
Madinah)……………………………………………………………………………………………………………….. 29
Ali R. Alsaedi
Transforming the Ministry of Health of Saudi Arabia: The Forty Initiatives …………………..37
Rakan Aydh Mohammad Alresasmah
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
Saudization of Medical Representatives and Pharmaceutical Industry
Ahmed Alsamil
Introduction
Abdullah jogged along the even trail, overseeing Shelley Lake. It was 7.30 am in the late
Indian summer of Raleigh, North Carolina. That peaceful lakeside pavement has been his
jogging trail when something bogged his mind. Alone, he stopped by the lake, whispering
intensely to himself: “Is it worth going back?… could I make a difference for them?”. He ran
breath in, breath out. Then, he stopped. His mind was boggled around that 2-hour zoom
meeting yesterday with Saudi officials in the Minister of Higher Education. As a consultant,
the Saudis invited him to return home and helped a capacity-building program for the nation’s
pharmaceutical industry. The Minister prompted a question which he was not sure of the
answer: “How can we grow Saudi’s pharmaceutical industry like the US by 2030?”. Then
another official added, “We would like you to help us prepare capacities of talent
academicians for the universities to develop entrepreneurs and specialists in this industry.”
Finally, another one interluded: “We need you to come back and be part of this action plan.”
Abdullah has spent more than 33 years in North Carolina as a pharma company scientist,
professor, and co-founder. Only once in about three or five years, he returned to Riyadh, his
birthplace for a few weeks’ holidays and met his network there. Since late spring, he has
been contacted to join a special project to develop a Saudi medical and pharmaceutical
industry roadmap. For Abdullah, the industry would not grow if capacity-building issues in
terms of knowledge, skills, tools, equipment, and community lack effective strategies and
execution. He gazed across the lake. The ministers’ questions kept running through his mind
as he packed home. Two weeks from that evening would be another heavy day for him. He
will have another meeting with the same group again.
Building Talents for Saudi Pharmaceutical Industry
The Kingdom of Saudi Arabia is currently undergoing a strategic economic transformation,
which poses unique challenges to the labor market, on the one hand, and to the education
system, on the other. The field of pharmacy is not exempt from these changes. The number
1
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
of pharmacy schools in Saudi Arabia is expanding rapidly: there was only one school in 2000,
nine in 2008, 18 in 2010, and now, 27 in 2017. A majority of them are public schools [1, 2].
As a result, the number of pharmacists finishing education in public colleges also increased
at a fast rate, that is, from 150–250 graduates in 2000 to 945 graduates in 2015 [3].
A study that compared the number of new students admitted to the pharmacy schools every
year to the number of professionally active pharmacists in 13 Middle Eastern countries
revealed that the ratio was 0.12 in 2008 [1]. This high ratio implies that if admitted students
graduate from the study program and remain active in the profession, the number of
pharmacists will continue to increase at a significant rate. In fact, some positive trends are
already taking place. For example, the number of pharmacists in public hospitals has
increased.
Saudi Arabia announced Saudization of professions in the sectors of pharmacy and its
specializations and their sales in a phased manner. According to an order issued by the
Minister of Labor and Social Development Eng. Ahmed Al-Rajhi, the Saudization drive will
be implemented in two phases and it will be conducted in partnership with the Ministry of
Health.
This decision covers the entities where the number of expatriates in the pharmacy profession
exceeds five or more. However, there is an exemption for pharmacists working as
“pharmaceutical product marketing specialists” in pharmaceutical companies. The exemption
also applies to drug agents, distributors, and employees in factories for which the Saudization
policy is enforced by the Saudi Food and Drug Authority (SFDA) in cooperation with the
Ministry of Labor and Social Development and the Saudi Arabian General Investment
Authority (SAGIA) in November 2018.
Under its commitment to implement Vision 2030, which reflects highly ambitious goals in
the country and achieves it through core national strength and capabilities, the Government
of Saudi Arabia plans to regulate the Medical Representatives (Medical Reps) profession.
The implementation started in early 2019. Saudi Food & Drug Authority (SFDA) has recently
issued a draft outline of the proposed plan of execution for Saudization of this profession.
The draft saliently highlights:
2
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
•
to The plan to ban the appointment of a non-Saudi pharmacist as Medical Reps in
Saudi Arabia
•
To ban on transfer of sponsorship of Medical Reps.
•
To execute a policy of allowing any new position as a Medical Rep should be filled
by a Saudi Pharmacist.
For smooth implementation of this plan, different periods are allowed for the stakeholders
as follows:
•
To create a policy that Saudi Nationals shall replace medical reps working with the
government sector by the end of 2019.
•
Based on implementation phases, starting from 2019, 25% of the Medical Reps
workforce shall be Saudi Nationals.
•
Within 06 months after the first phase, Saudization of Medical Reps shall be 50%.
•
In the third phase, which should be the next six months (end of the year), 75%
Saudization shall be achieved.
According to the proposed plan, in 2020, 100% Saudization will be achieved in the
profession. Other notable features of the plan are that a Medical Representative’s actual job
description shall be consistent with the profession as per the Saudi Commission for Health
Specialties records. There are also penalties against violation of new regulations on
companies and individuals practicing as Medical Reps without a license. The proposed
regulation is currently under discussion and subject to comments from stakeholders.
3
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
Figure 1: Saudis in the pharmacy workforce of the Kingdom in 2017
Figure 2 shows the number and percentage of Saudis and non-Saudis in different pharmacy
sectors in 2017. They constitute 34.5% of the total pharmacy workforce. In this sector, 98.7%
of workers are non-Saudi citizens. For every Saudi Arabian citizen working in a community
pharmacy, there are 74 non-Saudi citizens employed. Similar circumstances exist in the
second largest sector, the pharmaceutical industry. This branch of the economy employs 6896
workers, 28.3% of the total number of pharmacists. In pharmaceutical companies, 92.7% of
employees are non-Saudi citizens; for every citizen of Saudi Arabia working in this sector,
there are 13 non-Saudi citizens employed. Private health care institutions, the fourth largest
employer of pharmacists in Saudi Arabia (3428 employees; 14.0%), exhibit the same pattern
regarding the nationality of pharmacists. In this sector, 87.5% of workers are non-Saudi
citizens; for every single citizen working in the setting of private health care institutions, there
are seven non-Saudi citizens employed (Fig. 2)
Figure 2: Saudis and non-Saudis in different pharmacy sectors in 2017
Future Outlook
According to the new ministerial decisions and the Kingdom’s vision 2030 in Saudization,
the field of the medical representative is to be the basis of every leading pharmaceutical
company, with a successful and robust sales department based on qualified people for the
labor market. The new challenge is how these companies can achieve their goals and
4
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
aspirations without this decision causing any impact on the company’s goals. Figure 3 shows
the number of existing and the expected number in 2030.
Figure 3: Forecasted Number of Saudi pharmacists in 2030
To Return, or not to Return
Two weeks has passed. Abdullah would meet again with the Saudi officials in less than 48
hours. He has reviewed all the relevant documents e-mailed by them. He has mulled over the
possibility of returning to Saudi and being part of the Saudization or continuing plan for more
accomplishment. His existing company poised well within the innovation triangle region of
Raleigh, Durham and Chapel Hill.
Opening his closet, Abdulla’s fingers ran through his clothes and attire. “Got it!”. He grabbed
his taqiyah, ghutra, and iqal, stood in front of the mirror, smiled and modestly wore them.
“The management of pharmaceutical companies in Saudi Arabia must be ready and take the
necessary measures for this change.” Abdullah has decided to return to his origin, Saudi. Still,
he has not figured out the chain of institutional work. If it is supposed to be a holistic program,
how the program be structured based on a prioritized sequence that would sustain in the long
run? How to unite all departments, human resources, marketing, administration, education,
and development? “We will be able to create a new generation of Saudis capable of achieving
the goals and mission of this organization and positively affecting our business in the current
period or future, but these questions must be answered before I return”. Abdullah concluded.
5
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
References
1. Kheir N, Zaidan M, Younes H, El Hajj M, Wilbur K, Jewesson PJ. Pharmacy education
and practice in 13 Middle Eastern countries. Am J Pharm Educ. 2008;72:133.
2. Bin Saleh G, Rezk NL, Laika L, Ali A, El-Metwally A. Pharmacist, the pharmaceutical
industry and pharmacy education in Saudi Arabia: a questionnaire-based study. Saudi
Pharm J. 2015;23:573–80.
3. Ministry of Health. Statistical Yearbook 1437H. Kingdom of Saudi Arabia.
2015. https://www.moh.gov.sa/en/Ministry/Statistics/book/Documents/StatisticalBook1436.pdf. Accessed 24 Aug 2017.
4. Ministry
of
Health.
Achievements.
Kingdom
of
Saudi
Arabia.
2017. https://www.moh.gov.sa/en/Documents/Facts%20%20Achievements%20Layout%20final%20-Email%20(sQ).pdf. Accessed 24 Aug 2017.
5. Saudi
Arabia’s
Vision
2030.
Kingdom
of
Saudi
Arabia
2017. http://www.vision2030.gov.sa/en/ntp. Accessed 24 Aug 2017.
6. Sadi MA. The implementation process of nationalization of workforce in Saudi Arabian
private sector: a review of “Nitaqat scheme”. AJBM. 2013, 2:37–45.
6
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
Leading Pharmaceutical Industry in Saudi Arabia Post COVID19
Ali Ebrahim Alhomaied
Introduction
The pharmaceutical industry is an essential component of health care systems worldwide. It
comprises many public and private organizations that discover, develop, manufacture, and
market medicines for human and animal health (Gennaro 1990). The pharmaceutical industry
is based primarily on scientific research and development (R&D) of medicines that prevent
or treat diseases and disorders. Drug substances exhibit a wide range of pharmacological
activity and toxicological properties (Hardman, Gilman, and Limbird 1996; Reynolds 1989).
Modern scientific and technological advances accelerate the discovery and development of
innovative pharmaceuticals with improved therapeutic activity and reduced side effects.
Molecular biologists, medicinal chemists, and pharmacists are improving the benefits of drugs
through increased potency and specificity. These advances create new concerns for protecting
the health and safety of workers within the pharmaceutical industry (Agius 1989; Naumann
et al. 1996; Sargent and Kirk 1988; Teichman, Fallon and Brandt-Rauf 1988).
Many dynamic scientific, social, and economic factors affect the pharmaceutical industry.
Some pharmaceutical companies operate in both national and multinational markets.
Therefore, their activities are subject to legislation, regulation, and policies relating to drug
development and approval, manufacturing and quality control, marketing, and sales (Spilker
1994). Academic, Government, and industry scientists, practicing physicians and
pharmacists, and the public, influence the pharmaceutical industry. Health care providers
(e.g., physicians, dentists, nurses, pharmacists, and veterinarians) in hospitals, clinics,
pharmacies, and private practice may prescribe drugs or recommend how they should be
dispensed. Government regulations and health care policies on pharmaceuticals are influenced
by the public, advocacy groups, and private interests. These complex factors influence the
discovery and development, manufacturing, marketing, and sales of drugs.
The pharmaceutical industry is primarily driven by scientific discovery and development, in
conjunction with toxicological and clinical experience (see Figure 1). Significant differences
exist between large organizations which engage in a broad range of drug discovery and
7
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
development, manufacturing and quality control, marketing and sales, and smaller
organizations that focus on a specific aspect. Most multinational pharmaceutical companies
are involved in all these activities; however, they may specialize in one part based upon local
market factors. Academic, public, and private organizations perform scientific research
to discover and develop new drugs. The biotechnology industry is becoming a major
contributor to innovative pharmaceutical research (Swarbick and Boylan 1996). Often,
collaborative agreements between research organizations and large pharmaceutical
companies are formed to explore the potential of new drug substances.
Figure 1: Drug development in the pharmaceutical industry
Current Challenges for the Pharmaceutical industry
The pharmaceutical industry continues to thrive, yet several challenges may affect the
industry’s future growth in 2019 and beyond. For example, drug prices are at an all-time high,
R&D productivity has only just begun to climb again following a shortening in 2016/2017,
and the pharmaceutical landscape is constantly changing with the rapid growth of biosimilars
and disruptions of health technology.
As such an important part of our national and global economy, the pharmaceutical industry’s
success should be relevant to all. Fortunately, there are many bits of good news in this story,
and we’re likely to see the market maintain its current rate of growth for the next five years.
Still, to thrive in 2019 and beyond, the industry will need to address the following challenges:
Slowed market growth
8
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
The United States has led the international pharmaceutical market for many years, so slowed
growth here may signal bad news for the global economy. A QuintilesIMS report indicates
that US market growth will slow to single digits, between 6% and 9%, through 2021, down
from a 12% growth in 2015. The sluggish market growth is attributed to hepatitis and cancer
drugs that are expected to have less impact in the coming years. Still, the US will remain the
world’s largest pharmaceutical market, contributing 53% of all forecasted growth within the
next five years. China is expected to continue to be in the second-largest spot by contributing
12% of the world’s pharmaceutical development.
On a volume basis, the total volume of medicines consumed globally will increase by about
3% annually through 2021, only modestly faster than population and demographic shifts.
According to the analysis, issues of pricing, market-access pressures, lower volume growth
in emerging markets, and further generic-drug incursion will contribute to the lower rate of
growth.
The lull in market growth we are experiencing is to be expected after historically high price
increases for pharmaceuticals in recent years. However, the industry faces challenges finding
new ways to keep this vital industry growing.
US drug prices
Although President Trump has been in administration for over two years, there is still a major
issue over high drug prices in the USA. An example of the current situation: HIV
preventative drug, Truvida, has the potential to eventually wipe out HIV if taken by those at
high risk of contracting the disease. However, a monthly course costs $2,000 in the US
compared to a mere £45 ($58) in the UK, leaving hundreds of thousands of high-risk people
without access to the drug, and the HIV epidemic allowed to rage on.
Mounting pressures by patients, politicians, and regulatory bodies over drug pricing and
reimbursement led to price freezes in 2018 and a proposal to introduce an ‘international
pricing index’ through Medicare – which would aim to reduce Medicare spending by 30%.
The proposal was met widely with criticism due to concerns, and in early 2019, several
pharmaceutical companies hiked their prices up even further – an average of 6.3%. The US
President faces an ongoing and complex challenge to control increasing drug prices to pave
the way for more affordable and accessible healthcare.
9
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
The future of biosimilars
Biosimilars have made big waves in recent years, and there is strong growth predicted across
all markets, forecasting over 20% increases over the next five years. However, even though
biosimilars are growing at an accelerated rate, the market is still dominated by small
molecules with 76% of the market share.
Although biosimilars are a growing segment and threaten to take market share from small
molecules, their production has some challenges. Based on progress to date, the
development of biosimilars seems to provide challenges of its own. Despite considerable
growth, the market is still in early development and, in some markets, this development is
being further slowed by lawsuits over biologic patents. The regulatory processes are not yet
solidified either, and those that have been developed thus far have required costly clinical
trials to gain market approval.
Although biosimilars will present competition for biologics, they represent significant savings
to the consumer. In the United States, the projected cost savings from switching to biosimilars
is expected to be between $40 and $250 billion within the next ten years. This will go some
way in combatting the drug price crisis and make life-saving medicines more affordable.
Because they are so new to the market, biosimilars also present an opportunity for
pharmaceutical companies. Those who excel at marketing biosimilars within their product
range stand to gain an edge over their competitors. Even pharma with limited experience in
developing biosimilars can grow their portfolios with strategic mergers/acquisitions to
increase their capabilities.
Patient-centric healthcare
Technology trends are driving a shift towards patient-centric healthcare, as evidenced by
wearable biometric devices and telemedicine. This trend results in more informed patients
who are likely to take a more active role in any treatment plan their doctor may prescribe.
Patient-centric care can provide challenges and rewards for the pharmaceutical industry. The
main challenge for 2019 will be determining how to leverage the power of health technology
and shifting focus from partnerships with the medical community to partnerships directly
10
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
with the consumer. In 2019 and beyond, the direct consumer may become the pharmaceutical
company’s most strategic partner. When dealing with the consumer, the pharmaceutical
company can have an advantage at justifying prices and communicating value. We have seen
a shift towards consumerism in recent years with pharmaceutical advertisements, but we can
expect this trend to strengthen as drug companies have more opportunities to reach the
consumer through wearables and other devices.
2019 will prove to be a crucial year for the pharmaceutical industry to foster a relationship
with the public, and a large part of this will rely on their ability to build trust. As with all
consumer-based efforts, we can expect that some companies will excel and others will make
significant blunders. Either way, the rise of consumerism provides an exciting dynamic for
competition in this industry.
The shift towards value-based healthcare has also forced consumers to look at prescriptions
from a new value-benefit lens. Consumers have shown that they want new therapies that are
better than anything on the market, and the pharmaceutical companies must have real-world
research to back up such claims.
Brexit
With the deadline fast approaching for the UK to confirm the terms of their departure from
the European Union (EU), the effect of the potential outcomes on the pharmaceutical industry,
both in the UK and globally, is not fully known. The fear of a no-deal Brexit is causing panic
in the European industry that the UK is working hard to assuage. For example, EU
pharmaceutical companies that rely on UK supplies, such as Sanofi and Novartis, are
beginning to stockpile drugs. In addition, there are worries over batch testing, blood and
organ supply, and changes to regulatory and clinical trial processes slow down medicines
reaching the UK from the EU post-Brexit. In the face of the unknown, 2019 will be a year of
preparing for all possible outcomes.
2019 has been an interesting year for the pharmaceutical industry for many reasons. Slowed
market growth, Brexit implications, and inflated drug prices are the main areas of concern,
but we have also seen this in prior years where the market bounced back and adapted to
change. Still, even with its challenges, the pharmaceutical industry is maintaining a
stronghold. There is promising news on the horizon with biosimilars and patient-centric
11
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
healthcare trends that will likely help the market return to a whole thriving state. Further,
emerging markets with strong market growth, such as China, promise more innovative drug
development, hopefully leading to more life-saving drug approvals for patients worldwide.
Pharmaceutical industry: The Saudi Arabia Context
While most developed countries face economic uncertainty, Saudi Arabia’s economy has
been flourishing, driven by ambitious economic diversification initiatives, high oil prices, and
record-high fiscal budgets. As a result, the country’s GDP has steadily grown over recent
years, recording high single-digit growth rates resulting in USD 700 billion in 2012.
The robust growth of Saudi Arabia’s economy has been coupled with a rapidly growing
population fueled by a substantial influx of expatriates. With a population growth rate
exceeding 2% p.a., Saudi Arabia’s healthcare budget as a percentage of its GDP has increased
from 3.2% to 4.3% from 2008 to 2012 (See Figure 2). Underpinned by solid healthcare
demand fundamentals, the pharmaceutical industry has consequently grown at the same time
from USD 3.0 bn to USD 3.8 bn. This growth was also supported by several key demand
determinants, including rising wealth levels, increased private consumption of medicines,
improved longevity, and a growing number of chronic diseases such as diabetes and
gastrointestinal disorders.
The pharmaceutical sector is expected to maintain its strong growth momentum however, a
gradual shift towards low-cost generics coupled with a more robust market penetration of
global pharma players might lead to a redefinition of the competitive landscape. One probable
outcome may yield a bi-polar market dominated by branded patented drugs on one hand and
low-cost generics on the other. As a result, domestic players may end up squeezed in the
middle having a diluted value proposition with only the fittest surviving the race.
12
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
Figure 2: Development of Healthcare Spending in Saudi Arabia [in USD]
Local players: A core element of the Saudi Pharma formula
Over the past couple of decades, domestic players have come a long way to becoming a core
element of the Saudi pharmaceutical market formula. Starting as sole importers and
distributors of pharmaceutical products, companies such as Banaja Saudi import Company,
Spimaco, Tabuk Pharmaceutical Manufacturing, and Al-Jazeera Pharmaceutical industries
gradually developed their capabilities, ultimately establishing fully-fledged local
manufacturing facilities. In addition, several domestic players created partnerships and joint
ventures with global and regional pharma players lured by various government-sponsored
incentive schemes to promote local manufacturing.
As a result, there are currently 27 pharmaceutical manufacturers operating across the
Kingdom, accounting for around 18% of the market’s value. Despite representing a relatively
small share of the market, local production has recently picked up momentum, increasing
from 14% to 18% of the total market value over 2008-2012.
13
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
Figure 3: Development of the pharmaceuticals MARKET in Saudi Arabia [in USD]
Domestic players primarily focus on branded generics manufacturing, i.e., the off-patent
prescription market. Some also handle contract manufacturing opportunities under license
agreements with international players like Pfizer, GSK, and J&J. While the Government
supports the growth of local value chains by encouraging joint ventures and sponsoring nontariff barriers through price control mechanisms, domestic players face two main imminent
challenges:
1. Muscling in of global pharma giants into Saudi Arabia
2. Expected rise in popularity of generics produced in low-cost countries.
Towards a New Landscape of the pharmaceutical industry in Saudi Arabia
Global giants muscling into Saudi Arabia: increased focus on pharma’s “promised land” for
many executives of multinational pharmaceutical companies, mature markets have lost much
of their appeal due to the difficulty of establishing a competitive edge. In fact, mature markets
are expected to stagnate soon, and global players face many challenges.
From a regulatory perspective, tight healthcare budgets resulted in heavy cost-benefit scrutiny
for in-market products. Despite increasing R&D investments, an 80% rise over the past
decade, the number of new medical entities (nMEs) has fallen by 43% over the same period.
14
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
This radical decrease in nMEs is primarily due to more complex study requirements,
extending the development period of new drugs by approximately 30%. Consequently, only
three in ten marketed drugs produce revenues that match or exceed the average R&D costs.
The outlook is even grimmer for pipeline drugs: only one in eight approved compounds is
expected to generate returns in line with their communicated targets.
Moreover, it is foreseen that several ‘blockbuster’ drug patents will globally expire during the
next six years, putting over USD 200 bn of sales at risk for pharmaceutical giants. Such a loss
of exclusivity, known as the patent cliff, coupled with no mitigating new patents significantly
weakens the position of pharmaceutical manufacturers primarily reliant on innovator drugs.
Figure 4 shows the global challenges pharmaceutical companies face, particularly in mature
markets.
Figure 4: Challenges Faced by Pharmaceutical Companies In Mature Markets
Therefore, manufacturers are left in a position whereby top-line optimization is of
fundamental importance, forcing many to turn to emerging markets for solutions. The shifting
focus of big pharma players is already evident: they have started to build and enlarge their
footprint in emerging countries – regarded as the “promised land” – as these markets offer a
potential solution to their strategic dilemma.
To address the potential challenges posed by the penetration of global pharma players and
low-cost generics, domestic players need to orchestrate a multitude of key strategic levers to
sustain a competitive value proposition.
15
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
Figure 5: Key Strategic Levers for Sustaining a Competitive Value Proposition
COVID 19 and Its Effects on KSA’s pharmaceutical industry
Among the issues for pharmaceutical stockpile chains during this pandemic are the
limitations and effect of COVID-19 on two of the biggest worldwide makers of dynamic
pharmaceutical fixings (APIs) and generics: China and India.
Since the episode began in China and lockdowns were forced, supply from their assembling
offices has decreased. The genuine degree has been hard to measure as restricted quantities
of the common workforce have had the option to return to work. However, an ongoing letter
sent by Medicines for Europe uncovered that the Chinese forces anticipate that enormous
assembling offices should be completely operational soon, albeit littler makers may keep
battling for quite a while.
While COVID-19 entangles assembling of the items, a further concern is an interruption in
item conveyance which is not simply pharmaceuticals, it is everything. The immense
limitations on populace developments in Europe make appropriation and transportation an
issue. Let us take a gander at a model: say you start with the assembling of an API in a single
nation that at that point must be moved to another locale to be fabricated into a completed
item or experience a few other creation stages. You likewise need pill housings produced
elsewhere. Each of these components must be joint to make the finished item and afterward
be moved by coordination organizations, who, despite their earnest attempts to stay aware of
this, have development limitations and laborer diseases set upon them.
16
Strictly for SRU internal circulation only. NOT FOR DISTRIBUTION
I would speculate that there will be a few interruptions inside the production network, to such
an extent that organizations begin announcing power majeure, as it turns into a business
reality that individuals cannot perform under agreements.
Power compost provisos in contracts state conditions under which the exhibition of an
organization can be pardoned or suspended. They can likewise express that an organization
is not obligated to neglect to meet the terms of an agreement. Power compost commonly
applies while the occasion, for example, a pandemic, affects the organization’s capacity to
perform; in any case, there is no standard power fertilizer statement in each agreement. In
this way, the extent of what is entitled, what organizations can guarantee, and the extent of
what your reason for non-execution may differ from agreement to contract.
What’s Next?
As of now, nobody knows what is in store or can make a robust estimate of what will happen
to the pharmaceutical business in Saudi Arabia. In any case, there are two promising
recommendations; first, every organization should revisit their agreements and choose the
ones affected by cross-fringe issues and determine what the power majeure arrangements
state, both regarding what you can guarantee and what others can guarantee against you. The
most significant exercise now is to comprehend whether to have industrial facilities in a single
focal area or broaden in a few markets.
The second is to take a peek at the repayment arrangements, which require a gathering to
remunerate another organization for a misfortune endured in which they have some job or in
which they have acknowledged some type of lawful obligation. These could incorporate the
arrangement of a budgetary or legal guide. So organizations should look at those as a
component of this equivalent exercise, supposing that somebody guarantees either po
