SPIMACO to launch new products, expand in Africa, Europe: Vice Chairman

Ahmed Al-Jedaie, Vice Chairman and Managing Director, who said that the company plans to register more than eight new drugs this year, while targeting the registration of more than 15 new pharmaceutical products by 2026

Ahmed Al-Jedaie, Vice Chairman and Managing Director of Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO), revealed that the company plans to register more than eight new drugs this year, while targeting the registration of more than 15 new pharmaceutical products by 2026.

In an interview with CNBC Arabia, Al-Jedaie indicated that the company currently has more than 24 agreements with international companies to manufacture their drugs in-house, in addition to some local companies.

Additionally, SPIMACO plans to expand and enter the African and European markets in the near future, said the official, indicating that the company is currently present in 18 countries in addition to Saudi Arabia.

Aljedaie also stated that the company has begun launching its first fully manufactured commercial product at its new plant, which is specialized in the manufacture of oncology and high-potent drugs, the first of its kind in the region. He added that the agreement signed with the global company AstraZeneca is a step towards opening up prospects for registering and localizing new drugs in Saudi Arabia.

Over a period of five years, returns from the new plant are expected to more than double the investments of SAR 272 million, in addition to improving the company's profitability by manufacturing such effective, high-value drugs and improving the targeted profit. The plant is expected to produce more than 300 million units annually in the future, which will be reflected in sales and profitability. Moreover, the company's market share of cancer drugs will likely increase from less than 1% currently to 10% in the future, according to Aljedaie.

The top executive also stated that SPIMACO’s cash flow currently stands at more than SAR 260 million, a large portion of which is allocated to expansion, investment in research and development, and the registration of other major drugs and vaccines. He also indicated that the company's financial position is sound, with significant bank facilities and no outstanding debts that need to be repaid.

According to Argaam’s data, SPIMACO launched its new plant in July, which is specialized in the manufacture of oncology and high-potent drugs, at a total cost of SAR 272 million. The plant is set to produce its first commercial batch this month.