UAE Financial Assistance Programs Market Analysis

UAE Financial Assistance Programs Market Executive Summary

The UAE Financial Assistance Programs Market is at around $141.7 Mn in 2023 and is projected to reach $390.9 Mn in 2030, exhibiting a CAGR of 15.6% during the forecast period 2023-2030.

The goal of pharmaceutical companies' patient financial assistance is to reduce or eliminate out-of-pocket expenses as a barrier to prescription selection, allowing patients to continue taking name-brand prescriptions for extended periods of time. Some of the often-used financial help programs under patient assistance programs include co-pay assistance, free drug trials, bridge programs, sliding scale programs, coupons, bulk purchasing programs, etc. The formulary, which is a list of recommended and nonpreferred prescription medicines, is used by pharmacy benefit managers (PBMs) or health plans to calculate the out-of-pocket drug cost sharing for their clients. The efficacy, cost, and amount of the manufacturer's rebate that the payer receives for selecting a drug above its rivals determine a drug's preferred status. Generally speaking, patient cost sharing for preferred brand and generic medications is lower than that of nonpreferred brand medications. Patient cost sharing has gone up along with prescription prices, which has led to some patients stretching, skipping, or stopping too-expensive medication. Pharmaceutical companies frequently try to lessen these impacts by offering or sponsoring different kinds of financial assistance to patients.

The UAE also has a high prevalence of chronic diseases, notably diabetes, obesity cardiovascular disease (CVD) and respiratory disorders. The prevalence rate of Diabetics is 16.4%, Obesity is 27.8%, CVD is 8.9%, COPD is 3.1% and Asthma is 7.5%. Therefore, the market is predominately driven by factors such as rising drug cost, increasing incidence of chronic diseases, market competition, and patient adherence concern where factors such as government scrutiny, insurance pushback and sustainability challenges restrict the market

Pharmaceutical companies providing financial assistance to patient are such as Merck, GSK, Pfizer, Johnson & Johnson, Novartis among others.

Market Dynamics

Market Drivers

Prevalence of chronic diseases: The UAE also has a high prevalence of chronic diseases, notably diabetes, obesity cardiovascular disease (CVD) and respiratory disorders. The prevalence rate of Diabetics is 16.4%, Obesity is 27.8%, CVD is 8.9%, COPD is 3.1% and Asthma is 7.5%. Long-term, frequently costly treatments are required for the growing number of patients suffering from chronic illnesses. This results in a long-term, ongoing demand for financial help. The treatment of chronic illnesses is a top concern in medicine, which motivates support for aid initiatives.

Market competition: In therapeutic areas with multiple treatment options, pharmaceutical companies use patient support programs as a competitive advantage. Financial assistance can help a drug stand out in a crowded market, potentially increasing market share and patient preference. This competition drives companies to expand and improve their assistance offerings.

Patient adherence focus: There's growing recognition that financial barriers significantly impact medication adherence. Improved adherence leads to better health outcomes, which is a key goal for both healthcare providers and pharmaceutical companies. Financial assistance programs are seen as a tool to improve adherence rates.

Market Restraints

Sustainability concerns: There are questions about whether assistance programs are financially sustainable in the long term, especially for very expensive drugs. Critics argue that these programs may artificially sustain high drug prices by masking the true cost to patients. This concern could lead to scrutiny and potential limitations on program scope.

Insurance pushback:  Some insurers argue that assistance programs interfere with their formulary structures and cost-control strategies. There's a growing trend of insurers implementing "copay accumulator programs," where copay assistance doesn't count towards a patient's deductible. This shift may reduce the effectiveness of assistance programs for certain patients.

Government scrutiny: Increased focus on pharmaceutical pricing practices by government agencies and legislators. Potential for new regulations that could limit the scope or structure of assistance programs. This scrutiny creates uncertainty in the market and may lead to more conservative program designs.

Regulatory Landscape and Reimbursement Scenario

The UAE has a comprehensive, government-funded health service and a rapidly developing private health sector that delivers a high standard of health care to the population. Healthcare is regulated at both the Federal and Emirate level. Public healthcare services are administered by different regulatory authorities in the United Arab Emirates including the Ministry of Health and Prevention, Health Authority-Abu Dhabi (HAAD), the Dubai Health Authority (DHA) and the Emirates Health Authority (EHA). Due to the success of this high standard of care across all stages of the health care system, life expectancy in the UAE is 76.8 years, reaching levels similar to those in Europe and North America. To date, health care in the UAE has been funded mainly by the Government. The UAE in its modernization and path of reform is now evolving this funding to focus on increasingly important public-private partnerships. The UAE’s public policy for health care focuses on developing organizational and legal frameworks based on best practice, and to overhaul and upgrade the private and public sector health service capabilities. In addition, public policy action will set priorities for health services development within the sector.

The UAE cabinet has established the Emirates Drug Corporation (EDC) in September 20231. As a new independent regulator, the EDC will replace the Ministry of Health and Prevention (MOHAP) for the regulation of pharmaceuticals and medical devices. The EDC aims to protect public health and make the UAE a hub for these industries. Its objectives include promoting R&D, enhancing local production capacity, ensuring product availability and safety, and managing manufacturing/marketing processes as per international standards. The EDC will regulate to attract investment while maintaining pharmaceutical security.

Competitive Landscape

Key Players

Here are some of the major key players in the UAE Financial Assistance Programs Market:

• Abbott
• Takeda
• Teva
• GSK
• Novartis
• Roche
• Pfizer
• Bayer
• Sanofi
• Merck
• Johnson & Johnson