Logo of AJA Pharmaceutical Industries Ltd. (AJA Pharma)
Saudi Chemical Co. Holding (SCCH), through its subsidiary AJA Pharmaceutical Industries Ltd. (AJA Pharma), entered into a definitive agreement worth SAR 100 million with Dr. Reddy’s Laboratories Ltd., the company said in a filing to Tadawul today, Dec. 18.
Under the five-year agreement, AJA Pharma will get licensing rights to register and commercialize three of Dr. Reddy’s developed injections in Saudi Arabia and other GCC countries.
Through this agreement, SCCH aims to forge a partnership with Dr. Reddy’s Laboratories and discuss potential technology transfer of these products to be produced locally at the Aja Pharma plant.
The deal is expected to bring in cumulative revenues of SAR 100 million in five years, starting in 2025, the company said, adding that there are no related parties.
Thamer Al-Muhid, SCCH's CEO and Managing Director, said: “The agreement represents a major milestone for SCCH's pharma sector in the progress towards realizing our country’s Vision 2030 and ensuring pharmaceutical security."
"We will be able to serve and meet the growing needs of the community by localizing and enhancing our local capabilities to produce pharmaceuticals that require high technical abilities and which we produce in our diverse production lines," Al-Muhid said.
He added that a new sterile production line will soon be added after qualification from the relevant authorities.
"We are confident that this partnership will strengthen our commitment to high quality for sustainable growth and innovation in the healthcare sector in Saudi Arabia and the region," the CEO said.
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