SPIMACO inks MoU with Taqnia to invest in biotech drugs

23/04/2018 Argaam

 

Saudi Pharmaceutical Industries & Medical Appliances Corp. (SPIMACO) signed today a memorandum of understanding (MoU) with Saudi Technology Development and Investment Co. (Taqnia) to invest and acquire specialized biotech drugs that are in the final stages of registration.

 

Under the renewable one-year agreement, the drugs could be newly innovated or similar to those of other international brands, which SPIMACO will partner with in order to localize production.

 

The move is in line with Saudi Arabia’s Vision 2030 economic diversification plan, which  aims to raise local pharmaceutical production to 40 percent from 20 percent by 2020.

 

The MoU enables SPIMACO to enter into research and development of biotech drugs, the firm said in a statement to Tadawul.

 

Developing and registering these drugs requires more funding compared to ordinary drugs, and it will take a long time before seeing any return on investment for these drugs, SPIMACO said.

 

The MoU is effective immediately and it has no related parties, the statement said.

 

The company will reveal any further developments as they occur, it added.

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