Saudi Chemical inks contract with LCGPA to localize pharma product

Logo of Saudi Chemical Co. Holding

Saudi Chemical Co. Holding (SCCH), represented by AJA Pharmaceutical Industries Ltd. (AJA Pharma), signed a contract with the Local Content and Government Procurement Authority (LCGPA) for the localization and technology transfer of the pharmaceutical product, Ticagrelor, for its inclusion on the mandatory list.

The mandatory list includes national products issued by the authority in accordance with the provisions of the Regulations on Preference for Local Content, Small- and Medium-Sized Enterprises, and Companies Listed on the Capital Market in Business and Procurement Transactions, issued under Cabinet decision No. 245, dated 26/11/2019, the company explained in a statement to Tadawul.

The contract term is three years as of the agreement date, said the company, expecting the financial impact to result in revenues exceeding SAR 35 million over the five years following commercialization.

CEO and Managing Director, Thamer Almuhid, said Saudi Chemical is pleased with this significant and qualitative milestone, as it continues to support the development of the pharmaceutical sector in Saudi Arabia.

Ticagrelor is the first drug to be entirely manufactured locally. It is critical for the prevention of strokes and heart attacks, according to Almuhid.

By bringing the production of Ticagrelor to Saudi Arabia, Saudi Chemical will contribute to enhancing the local production of important medicines as well as ensuring a sustainable supply of essential medications and drug security, he said.

Additionally, this will create more job opportunities for national cadres and advance local human capital. This is a testament to the company's ongoing commitment, which aligns with the Saudi Vision 2030 goals, to improving access to high-quality pharmaceutical products, driving economic growth and improving the healthcare sector in the Kingdom, Almuhid added.