Research and Markets: Kuwait Pharmaceuticals and Healthcare Report Q3 2011 - The Kuwaiti Ministry of Health Announced That It Will Make Health Insurance for Expatriates Compulsory

DUBLIN--(BUSINESS WIRE)--

Research and Markets(http://www.researchandmarkets.com/research/981135/kuwait_pharmaceuti) has announced the addition of the "Kuwait Pharmaceuticals and Healthcare Report Q3 2011" report to their offering.

Kuwait remains one of the most attractive regional markets for pharmaceutical investors. Its affluent population has traditionally had a preference for patented medicines, which comprise over 67% of the total market's value. Epidemiological factors, particularly the rising prevalence of diabetes and similar chronic diseases, will continue to drive market growth. BMI expects the annual pharmaceutical values growth in Kuwait to outstrip that of inflation, indicating continued commercial opportunities for drugmakers.

Headline Expenditure Projections

• Pharmaceuticals: KWD259mn (US$905mn) in 2010 to KWD286mn (US$1.02bn) in 2011; +10.7% in local currency terms and +13.0% in US dollar terms. Forecast up moderately from Q211 due to macroeconomic factors.
• Healthcare: KWD834mn (US$2.92bn) in 2010 to KWD922mn (US$3.29bn) in 2011; +10.5% in local currency terms and +12.8% in US dollar terms. Forecast up moderately from Q211 due to macroeconomic factors.
• Medical devices: KWD84mn (US$294mn) in 2010 to KWD93mn (US$332mn) in 2011; +10.5% in local currency terms and +12.8% in US dollar terms. Forecast up moderately from Q211 due to macroeconomic factors.

Key Trends & Developments

• In April 2011, the Kuwaiti Ministry of Health announced that it make health insurance for expatriates in the country compulsory. Local press has reported over the course of May 2011 that expatriates in Kuwait are worried about the proposed scheme, which would require them to pay KWD130 (US$473) for receiving treatment in three hospitals and 15 clinics. They are concerned about the financial implications of the health insurance scheme, in addition to a hike in food prices, fees at the private schools, rent and other expenses. However, the scheme does allow families to receive discounts for certain services.
• Kuwait's health ministry is set to provide free medical and consultation services to Bedouns, according to Assistant Undersecretary for Financial Affairs Mohammad Al-Azmi, cited by Al- Dar in March 2011. The ministry took the decision during a meeting with the chairman of the Central System for Remedying the Status of Illegal Residents (CSRSIR), Saleh Al-Fadhalah. Al-Azmi added that the ministry will implement the decision after obtaining approval from the cabinet. According to sources, the decision will allow the government to counter attacks on doctors and nurses in various hospitals and health centres.
• In March 2011, Kuwait called on the members of the Gulf Cooperation Council (GCC) to consider implementing a single cost, insurance and freight (CIF) charge for pharmaceuticals across the region. The move would standardise drug prices and would also be in line with BMI's view that the GCC will use its increased collective bargaining power to lower the purchasing prices for pharmaceuticals. However, given that most drugs purchased at retail prices in Kuwait are bought by expatriates - who are not covered by government insurance - the authorities may not feel the pressure to further reduce distribution mark-ups.

Companies Mentioned:

• Kuwait-Saudi Pharmaceutical Industries (KSP)
• Advanced Technology Company
• Bader Sultan & Bros
• Safwan Trading And Contracting Company

For more information visit http://www.researchandmarkets.com/research/981135/kuwait_pharmaceuti