Pricing of biosimilars in Saudi Arabia

Abstract

Innovation in the pharmaceutical industry is expensive and risk must be rewarded. Some novel pharmaceuticals may be worth their high prices. Yet, high prices may hinder accessibility to novel products. It is paramount for pharmaceutical companies to demonstrate the value of their products in the face of increasingly budget-conscious stakeholders. This paper will provide background on the pricing of biosimilars in Saudi Arabia and explain the system used for pricing these products. Factors influencing pricing of pharmaceuticals in general as well as approaches to pharmaceuticals price control worldwide will be discussed.