SPIMACO inks final agreement with Swiss pharma firm to locally manufacture immunosuppressive drug

Logo of Saudi Pharmaceutical Industries and Medical Appliances Corp.

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) signed today, April 28, 2021, a final agreement with Switzerland-based Hoffmann-La Roche for the localization and manufacturing technology transfer of its immunosuppressive drug.

The drug is used to prevent the body from rejecting new organs after organ transplantation, particularly, after kidney, heart and liver transplantation, the company said in a bourse filing.

The deal is considered an important development in the existing strategic alliance between SPIMACO and Roche in the field of high-tech medicines. It will contribute to the localization and transfer of the latest technologies to SPIMACO’s plant in Qassim and the required training at the highest levels for its national cadres, as well as upgrading the medicine industry.

The agreement will strengthen SPIMACO’s position in the local market, as well as raise the percentage of localization of the pharmaceutical industry in the Kingdom to achieve one of the goals of the Vision 2030 and the National Transformation Program in the health and industry sector by relying on local manufacturing, particularly, knowledge-based industries.

Due to its importance in achieving public health and national drug security, this agreement comes within the strategic plan of the company that aims to expand, spread and diversify by entering into new areas in order to achieve the highest levels of healthcare and meet the needs of the Saudi market and ensure the continuity of availability of medicine to the patients in accordance with internationally recognized specifications and standards.

The agreement is regarded as the first complete localization in the Kingdom of this type of advanced drugs (immunosuppressants used for transplant patients). In addition, the product under this agreement is the world leader in the aforementioned category.

According to the data available with Argaam, SPIMACO announced in June 2015 the approval of its board of directors to establish a project for the production of cancer drugs (pills and capsules) within its factory in Al-Qassim at an initial cost of SAR 200 million.

In April 2018, the company signed a memorandum of understanding (MoU) with Hoffman-La Roche to cooperate in localizing cancer medicine production at SPIMACO’s Qassim plant.

The MoU included manufacturing a number of products, including the first stage of three pharmaceutical compounds with average annual sales of about SAR 100 million. These medicines are used in the treatment of some common cancers such as breast, colon and rectal cancers.