Saudi Chemical signs one-year MoU with RDIF to produce COVID-19 vaccine

Saudi Chemical Co. (SCC) signed a non-binding memorandum of understanding (MoU) with the Russian Direct Investment Fund (RDIF) to help provide the COVID-19 vaccine in Saudi Arabia, the company said in a bourse statement.

The financial impact of the one-year MoU will reflect on the company's financials on completion of the deal.

The MoU was signed by SCC's 95%-owned subsidiary, AJA Pharmaceutical Industries Co. (AJA Pharma), and its 99%-owned subsidiary, Saudi International Trading Co (SITCO Pharma). 

Earlier this year, RDIF said it signed partnership deals with R-Pharm Group and Gamaleya National Research Center of Epidemiology and Microbiology to produce the first Russian COVID-19 vaccine with high export potential.

Russia will provide Saudi Arabia with the coronavirus vaccine in the first stage of implementing the MoU, and then it will contribute to developing local production capacity by transferring its expertise in production processes.

The RDIF will represent the competent authorities with regard to vaccine’s registration and clinical studies, subject to the regulatory approvals in Saudi Arabia.

The MoU comes in line with Saudi Vision 2030, which aims at boosting the local content in the pharmaceuticals industry, through the Saudization of the pharmaceutical industries sector and the development of the supply chains and distribution channels.

The new vaccine will be subject to several clinical tests, the statement said, adding that it will reflect positively on the company's financials.

Updates will be notified in due course, the statement added.