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Saudi Pharmaceutical Industries and Medical Appliances Co. (SPIMACO) said in a bourse statement on Thursday that its fully-owned subsidiary Arac Health Care Co. will establish a new SAR 5 million company to manage and operate medical centers and pharmacies.
Arac Healthcare will own 80 percent of the new entity, while Pharmaceutical Industries for Distribution Co. will hold a 20 percent stake.
The decision, which was approved by SPIMACO’s board of directors, comes as ARAC moves to capitalize on the expansion of the healthcare sector in Saudi Arabia. The company also wants to promote its products in the kingdom.
The new venture will be financed from Arac Healthcare’s internal resources, the company added.
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