Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, has embarked on an official visit to Denmark, aimed at strengthening partnerships in pharmaceutical localization and enhancing health security in alignment with the Kingdom’s Vision 2030 initiative. This visit emphasises increasing local production of critical medications such as insulin, GLP-1 drugs, and advanced biotherapeutics. Notably, Alkhorayef’s discussions with executives from major pharmaceutical companies, including Novo Holdings, are crucial as they seek to establish Saudi Arabia as a hub for pharmaceutical manufacturing.
This diplomatic effort comes in the wake of an agreement signed in October 2023 during the Global Health Exhibition in Riyadh between NUPCO, the Public Investment Fund-owned Lifera, and Novo Nordisk, with the intent to localize up to seven insulin products. The partnership is significant, aiming to bolster insulin production capacity in Saudi Arabia, which is projected to meet over 80 percent of domestic demand by 2027. This aligns with a broader strategy to localize pharmaceutical production, thereby reducing the country’s reliance on imports.
Pharmaceutical localization is a vital component in enhancing Saudi Arabia’s health security. By shifting production, research, development, and distribution from foreign sources to domestic facilities, the Kingdom seeks to strengthen local capabilities and stimulate economic growth. Remarkably, Saudi Arabia has already reduced its pharmaceutical import reliance from 80 percent in 2019 to 70 percent in 2023, with ambitions to enhance this trend further. The introduction of new technologies and the establishment of local manufacturing capabilities, including the first fully locally produced biosimilar, enoxaparin, exemplify this progress.
A pivotal aspect of Saudi Arabia’s localization drive is its collaboration with Novo Nordisk, which seeks to localize and manage 90 percent of the Kingdom’s insulin production. This strategic initiative not only contributes to fulfilling local demand but also positions Saudi Arabia as the first country in the Gulf Cooperation Council (GCC) to produce insulin domestically, reflecting significant advancements in the region’s healthcare landscape.
The ongoing expansion of partnerships in this field, particularly at Sudair City for Industry and Businesses—a leading industrial hub—hints at an economic contribution of an estimated $1 billion to the Saudi GDP. Such collaborations are central to the growth of the pharmaceutical sector, which has seen a remarkable market increase of 25 percent over the past five years. The Ministry of Industry highlights that since 2020, over 200 priority pharmaceutical products have been identified for localization, representing 40 percent of the government’s annual health procurements.
Furthermore, Saudi Arabia’s objectives extend beyond insulin to encompass the localization of vaccines, plasma products, and biosimilars, with overarching investments surpassing SAR 11 billion (approximately $2.93 billion). This comprehensive approach is expected to create over 8,000 jobs, underscoring the importance of high-quality investments in both healthcare and pharmaceuticals.
The Vaccines and Biopharmaceuticals Manufacturing Committee, chaired by Alkhorayef, is currently finalising strategies that could facilitate the development of these vital sectors, indicating promising new avenues for international collaborations. As the Kingdom seeks to promote not just self-sufficiency but also export initiatives—current pharmaceutical exports standing at $400 million—this local production strategy displays a solid commitment to fortifying the nation’s healthcare framework under Vision 2030.
Overall, Saudi Arabia’s strategic pivot towards pharmaceutical localization, marked by high-profile partnerships and significant investments, signals a transformative moment for the Kingdom’s healthcare industry. This initiative not only addresses local healthcare needs but also positions Saudi Arabia as a competitive player in the global pharmaceutical landscape.
Reference Map
- Lead article
- Related article summary 2
- Related article summary 3
- Related article summary 4
- Related article summary 5
- Related article summary 6
- Related article summary 7
Source: Noah Wire Services
