RIYADH: Pharmaceutical industry in Saudi Arabia is poised for enhancement following the signing of four agreements aimed at fostering partnerships between the Kingdom’s public and private sectors.
The Local Content and Government Procurement Authority signed the deals for the localization of industry and knowledge transfer on Monday, according to the Saudi Press Agency.
The deals are “based on the principle of cooperation and integration to enhance health and pharmaceutical security and development” in Saudi Arabia, the authority said.
It reached agreements with Saudi-based Jamjoom Pharma and American company MSD for the production of sitagliptin phosphate, a medication for the treatment of type 2 diabetes.
Further deals were agreed with Aja Pharma in Hail and Saudi-Japanese business SAJA Pharmaceutical Co. in Jeddah to manufacture the antiplatelet medication ticagrelor, which reduces the risk of blood clots.
The financial impact of localizing pharmaceutical products exceeds SR250 million ($67 million) over 10 years for each agreement.
Abdulrahman Al-Samari, the CEO of the authority, explained that these agreements reaffirm the sustainable partnership between the government and private sectors for the development of local content, as reported by SPA.
He emphasized the authority’s commitment to adding products to the mandatory list according to the agreement’s requirements, benefiting all government entities, state-owned entities, and government hospitals subject to the mandatory list mechanism.
The CEO confirmed the authority’s efforts to establish new industries and sectors in the Kingdom, enhance supply chains for products, and achieve self-sufficiency for the country.
This is not the first instance of Saudi agencies collaborating to enhance the Kingdom’s business sector. In October 2023, the Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, took measures to promote national products by signing two memorandums of understanding.
The organization entered into agreements with the Saudi Export Development Authority and the Local Content and Government Procurement Authority during the second edition of the “Made in Saudi” exhibition, which took place last October.
The MODON-LCGPA MoU centered on integrating industrial cities to enhance local content and foster innovation. It also aimed to establish incentive programs for industrial partners and agreements to localize industry and transfer knowledge.
Local content plays a crucial role in the development of non-oil sectors and gross domestic product. Due to its significance, the Kingdom’s leadership has taken many steps toward its enhancement and development.
The authority is dedicated to developing local content in all its components within the Saudi economy. It focuses on improving government procurement processes and ensures alignment with national visions and strategies to achieve development and financial goals.
Source: Arab News
