SPIMACO signs SAR 135 mln contract for license, supply, co-marketing of 2 products

Logo of Saudi Pharmaceutical Industries and Medical Appliances Corp.

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) signed, on Sept. 19, a contract with Merck Sharp & Dohme International (MSD) for license renewal, supply and co-marketing agreement for two second-brands products (three SKUs) used in the treatment of non-insulin dependent type 2 diabetes.

SPIMACO owns the marketing rights and the trademark of these second-brand products in Saudi Arabia, and they are registered with Saudi Food & Drug Authority (SFDA), the company said in a bourse statement.

The total estimated revenue for this agreement is nearly SAR 135 million during 2023 and 2024.

This agreement will strengthen the leading position of SPIMACO in the domestic market, in addition to improving the localization percentage of the pharmaceutical industry in the Kingdom to achieve one of the Vision 2030 objectives, in line with the National Transformation Program (NTP).

The deal is expected to have a positive financial impact on the company’s future results, the statement added, noting that there are no related parties to this deal. Any future updates will be announced in a timely manner.