Here's a look at AME Medical strategy

Logo of AME Company for Medical Supplies

AME Company for Medical Supplies obtained, on Dec. 22, the approval of the Capital Market Authority (CMA) to list its shares on Nomu – Parallel Market. Thus, it became the first cosmetics manufacturing company to be listed on the local market.  

Established in 2009 and headquartered in Jeddah, the company was transformed to a Saudi joint stock company in June 2021. 

The company's current capital is SAR 70 million, divided into seven million shares with a nominal value of SAR 10 per share. 

AME Medical Supplies’ activities are represented in retailing medical devices, equipment and supplies, according to its commercial register. 

The medical supplies company distributes, and markets medical products, supplies, equipment and devices used mainly in the field of cosmetics and plastic surgery in Saudi Arabia.  

The company distributes its sales among the different Saudi regions, with the Central Province accounting for 50% of sales, Western Province (37%) and the Eastern Province (13%). 

The company said its sales are perfectly distributed, as the share of the major customer does not exceed 4.8%, and the total shares of the 10 top customers do not exceed 31%. In addition, the share of the top 18 clients does not exceed 40.5%.  

The following table shows the distribution of the company’s sales in 2019 and 2020: 

AME said it has three main business lines, namely cosmetic injection materials, medical devices (laser devices), and platelet-rich plasma (PRP) injection. 

The firm added that it provides after-sales services, as well as warranty and periodic maintenance services for devices and equipment. It entered into several distribution agreements with international suppliers, whereby it distributes and markets their products in the Kingdom.

AME further said it has a strong foothold in its product categories, and its market share reaches 12.5% ​​in the cosmetic injection materials and laser tools sectors. Meanwhile, its market share in the plasma sector stands at 7%, and the cosmetic injection products constituted nearly 80% of sales in 2020. 

The medical supplies company indicated that it seeks continuous growth through increasing its market share in Saudi Arabia, as well as boosting its customer base, and developing operations by entering new partnerships with international suppliers and expanding the base of products.

The company's strategy includes developing its current business model through capitalizing on its experiences in the market and customer base, in addition to the horizontal and vertical expansion in cosmetic activities.

The firm also aims to boost its business volume and returns, as well as achieve higher profitability for shareholders. It studies to enter other value-added business lines that commensurate with the current business activities.

The most important strengths and competitive advantages include the provision of high-quality, integrated products and services as well as geographical spread through operating in three main Saudi cities, namely Riyadh, Dammam, and Jeddah. 

In addition, AME plans to expand through entering this sector directly over the coming years, through its growth strategy, as indicated in the following table: 

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