SPIMACO's target investments in new projects at SAR 2.5 bln: CEO

Khaled Alkhattaf, CEO of Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO)

Khaled Alkhattaf, CEO of Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO), said that target investments in new projects, as per the company's strategy until 2027, stand at nearly SAR 2.5 billion.

The company is targeting investments in new technologies or through acquisitions, he told Argaam on the sidelines of the Saudi Capital Market Forum 2023.

Alkhattaf stated that feasible opportunities were looked into during 2022.

"We have requirements that have to be fulfilled by the companies we seek to acquire, including their drug portfolios, technologies, management, sales volume, and expansions inside and outside the Kingdom," he said.

The CEO indicated that SPIMACO's market share is estimated at about 8% in consumer sales and the private sector in the Saudi market.

The company endeavors to boost its share in government sales by leveraging the services of the Local Content & Government Procurement Authority (LCGPA) and the Ministry of Industry to support the localization of pharmaceutical technology in the Kingdom.

As for the high prices of raw materials and their impact on drug prices locally, Alkhattaf said: “The supply of basic materials saw a shortage after the COVID pandemic, China shutdown and the Russian-Ukrainian war. All these factors led to a rise in products of the global drug market, and we have successfully avoided these effects by increasing our stock until a sufficient period to meet the demand of the Saudi market".

The prices of medicines in the Kingdom have risen for some products such as painkillers and antibiotics, he said, adding the company is communicating with the Saudi Food and Drug Authority to look into increased costs and their impact on the current prices of medicines, according to the top official.

Alkhattaf revealed that four qualitative products are being prepared for manufacturing in partnership with AstraZeneca, which will be produced at the company's Qassim plant.