Pharmacoeconomic Analysis in Saudi Arabia: An Overdue Agenda Item for Action

Abstract

Pharmacoeconomics is a branch of health economics related to the most economical and efficient use of pharmaceuticals. Pharmacoeconomic research identifies, measures and compares the costs and outcomes (clinical, economic and humanistic) of pharmaceutical products and services. Pharmacoeconomic evaluation can play a significant role in the efficient allocation of resources in healthcare systems with constrained budgets. Countries are trying to control the rising costs of health care in their aging population. They are all asking the same question: Is the new drug good value for money; and if so, what is the society willing to pay for it? This article reviews the importance of, and the need for, adaptation of pharmacoeconomic analysis to the conditions in Saudi Arabia. It will shed some light on the important steps for converting the concept into practice, including the need for identifying the willing-to-pay (WTP) or the threshold cutoff, the existence of a real cost for each utility, the nonexistence of an pharmacoeconomic advisory forum, pharmaceutical budget allocation, and the impact of pharmaceutical marketing. It will also provide recommendations for easing any challenges that might jeopardize the conduct of such analysis in Saudi Arabia.

Linking the Saudi Arabian 2030 vision with nursing transformation in Saudi Arabia: Roadmap for nursing policies and strategies

“…One of the goals of Saudi Vision 2030 is improving the health delivery system to enhance community health status. In this regard, the provision of free healthcare services in Saudi Arabia is the responsibility of the Ministry of Health (MOH) at three care levels: primary, secondary, and tertiary ( Al-Jazairi et al, 2011 ). Moreover, the government plays an essential role by offering varied levels of health services.…”

Current status, and future prospects of pharmaco-epidemiology and post-marketing surveillance in Saudi Arabia: A review of literature

“…Pharmacoeconomic researches are important since they assist in the measurement of the use and clinical outcomes of the pharmaceutical products and services in a country. Such evaluation is significant as it can rectify the system and allocation of healthcare resources in a more efficient manner (Al-Jazairi et al, 2011).…”

“…Accordingly, the Ministry of Health (MOH) is primarily responsible for healthcare spending. Approximately 75% of the total healthcare spending in Saudi Arabia is made by the government (Al-Jazairi et al, 2011). At the same time, however, the pharmaceutical market heavily relies upon imports; most importantly the high-tech patented drugs.…”

The Saudi Arabia Food and Drug Authority: An Evaluation of the Registration Process and Good Review Practices in Saudi Arabia in Comparison with Australia, Canada and Singapore

“…In response to these conditions, the SFDA employs stringent price control policies to constrain public and private pharmaceutical costs and participates in the Gulf Cooperation Council (GCC) drug pricing plan, but it is expected that government support for private health insurance enrolment will act to increase overall pharmaceutical expenditures [3]. …”