17 products in the additional price preference for “medicines and medical preparations”

The Local Content and Government Procurement Authority has announced the first group of products that apply to the “pharmaceutical and medical preparations sector”, in order to ensure the development of local content and empowerment.
This mechanism aims to enable the national industry by providing new competitive incentives within the government purchasing system, which contributes to increasing dependence on national products in the health sector.

Additional price preference mechanism

The authority explained that the “additional price preference mechanism” provides an additional price preference rate of 20%, in addition to the preference rate specified by 10% in the list of local content preference and local small and medium enterprises.
The mechanism gives the national product a price preference when compared to its foreign counterparts in the offers of applicants in government competitions, which were identified by the list of local content preference, local and medium enterprises and companies listed in the financial market in business and purchases.

Medical and medical preparations sector

The authority indicated that the number of products included in the list designated for the mechanism of “additional price preference” reaches 17 products in the medicine and medical preparations sector.
The expected spending on the target products is estimated at 141 million riyals, in addition to the impact on the gross domestic product of 53.8 million riyals, which reflects the pivotal role of this step in strengthening the national economy and stimulating the pharmaceutical industry locally.

Conditions for pricing preference

The list of “additional price preference” for the medicine and medical preparations sector requires that the product have a valid registration certificate issued by the Food and Drug General Authority.
The mechanism does not apply to the national products that are satisfied with the secondary packaging stage, with the exception of national products that have undergone clinical studies or vital parity in the Kingdom or that contain an effective (API) material manufactured locally.
It is noteworthy that the first group of the additional price preference in the medicine and medical preparations sector; It comes within the authority’s efforts towards encouraging national factories to increase their local content, and to enhance its role in developing the economic growth of the targeted sectors, and enabling local capabilities.