Article 11 of the Saudi Pharmaceutical Establishments Law
المادة 11 من نظام المنشآت والمستحضرات الصيدلانية والعشبية
This article bases the price of a pharmaceutical or herbal product on the factory price or the export price to the Kingdom, and requires the Authority to review prices periodically.
Official text (Arabic)
This article has not been amended since the law was issued.
يحسب سعر المستحضر الصيدلاني أو العشبي بناءً على سعر المصنع أو سعر التصدير إلى المملكة بعملة بلد المنشأ أو العملة التي تقررها الهيئة. وتقوم الهيئة بمراجعة أسعار المستحضرات الصيدلانية والعشبية على فترات منتظمة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 11 explained in plain English
This article sets the basis for pricing pharmaceutical and herbal products in two provisions:
First: the basis of calculation. A product's price is calculated on one of two bases:
- The factory price, or
- The export price to the Kingdom.
This is done in the currency of the country of origin, or in the currency the Authority decides. The article does not say when the factory price is used and when the export price is used.
Second: periodic review. The Authority reviews product prices at regular intervals, so the price is not fixed forever. The text does not set the length of these intervals or the review criteria.
This article is the starting point of the pricing chain; it is followed by Article 12, which sets the profit percentages for the warehouse, the pharmacy and the herbal products sales establishment, calculated on the factory or export price mentioned here. The factory or export price is thus the basis on which profit margins are built up to the price the consumer pays.
Practical example
A company in Riyadh imports a medicine manufactured in Europe. Its price in the Kingdom is calculated on the factory price or the export price to the Kingdom, in the currency of the country of origin or the currency the Authority decides, and then the warehouse and pharmacy profit percentages set in Article 12 are added.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 11 of the Saudi Pharmaceutical Establishments Law
On what basis is the price of a medicine calculated in Saudi Arabia?
On the factory price or the export price to the Kingdom, in the currency of the country of origin or the currency the Authority decides.
Do medicine prices change?
The article requires the Authority to review product prices at regular intervals.
How often are prices reviewed?
The text says at regular intervals without specifying their length.
More articles on Drug Pricing and Profit Margins
- Article 12
This article sets the profit percentages for a trading warehouse, a pharmacy and an herbal products sales establishment on a product's price, according to factory or export price brackets.
تحسب نسبة ربح على سعر المستحضر الصيدلاني أو العشبي لكل مستودع اتجار بالمستحضرات الصيدلانية والعشبية، وصيدلية، ومنشأة بيع المستحضرات العشبية، على النحو الآتي: سع
- Article 19
This article bars selling registered pharmaceutical and herbal products except after the Authority prices them and in the packages it specifies.
لا يجوز بيع المستحضرات الصيدلانية والعشبية المسجلة إلا بعد تسعيرها من الهيئة، ووفقاً للعبوات التي تحددها.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.