Saudi Arabia Explores Pharmaceutical Localization Opportunities During Minister's Visit To Denmark

Minister of Industry and Mineral Resources Bandar Alkhorayef is visiting Denmark to enhance partnerships in pharmaceutical localization. This aligns with Vision 2030's goals to strengthen health security. The focus is on boosting local production of insulin, GLP-1 drugs, and advanced biotherapeutics through discussions with major pharmaceutical firms like Novo Holdings.

Saudi Arabia has made strides in reducing its reliance on imported pharmaceuticals. From 2019 to 2023, import dependence decreased from 80% to 70%. This was achieved by introducing advanced technologies and manufacturing high-quality products locally. Notable achievements include the Kingdom's first fully developed biosimilar, enoxaparin, and the region's first advanced respiratory medication facility.

The collaboration between Saudi Arabia and Novo Nordisk aims to localize 90% of the Kingdom's insulin production. This partnership seeks to meet over 80% of Saudi Arabia's insulin demand by 2027. It positions Saudi Arabia as the first GCC nation to manufacture insulin domestically.

Ongoing partnerships are primarily based at Sudair City for Industry and Businesses, a key industrial hub. These initiatives are expected to contribute $1 billion to Saudi Arabia's GDP. The pharmaceutical sector has experienced a 25% market growth over the past five years, highlighting its transformation.

Alkhorayef's visit underscores the importance of public-private partnerships in achieving Vision 2030's healthcare localization goals. Since 2020, the Treatments Localization and Development Committee has identified over 200 priority pharmaceutical products. These represent about 40% of the government's annual $3.7 billion health procurements.

Investment and Export Potential

The ministry will emphasize high-quality investments in healthcare and pharmaceuticals to meet local needs and establish Saudi Arabia as a regional export center. Current pharmaceutical exports are valued at $400 million. Initiatives like the insulin localization agreement serve as a model for impactful industrial collaborations.

Beyond insulin, Saudi Arabia has ambitious localization goals for vaccines, plasma products, and biosimilars. Total investment exceeds SAR11 billion, with potential job creation exceeding 8,000 positions.

Strategic Partnerships

The Vaccines and Biopharmaceuticals Manufacturing Committee (399), chaired by Alkhorayef, includes relevant stakeholders actively finalizing strategies for these sectors. This indicates new opportunities for international partners.

Alkhorayef will discuss plans with Novo Holdings executives to increase insulin production capacity in Saudi Arabia. They will explore broader collaboration in biopharmaceutical therapies, aiming to establish the Kingdom as a pharmaceutical manufacturing hub.

The visit follows an October 2024 agreement at the Global Health Exhibition in Riyadh between NUPCO, PIF-owned Lifera, and Novo Nordisk. This agreement focuses on localizing up to seven insulin products' production.

With inputs from SPA