Boehringer Ingelheim, one of the world’s leading pharmaceutical companies, has entered into a tri-partite agreement to set up production facilities in Saudi Arabia.
The deal with distributor Cigalah and local manufacturer Tabuk is part of Boehringer Ingelheim’s plan to expand its range of medicines in the Gulf kingdom.
In a statement, the companies said they have decided to combine scientific know-how, technical expertise, and local infrastructure to better serve Saudi patients.
Under the agreement, Cigalah and Tabuk will manage and deliver 26 products for Boehringer Ingelheim, the statement said.
Local production in Saudi Arabia satisfies only 15 percent of the demand and imports account for 85 percent of the domestic market, the company said.
“With Boehringer Ingelheim’s investment, interest to expand in Saudi Arabia and partnering with local manufacturing units, the company will be able to offer more innovative medicines for Saudi patients, helping them to improve health and quality of life,” it added.
The agreement will help to establish new capabilities and capacities and a more effective supply chain to support Boehringer Ingelheim’s ambitious business plan and expansion in Saudi Arabia, the statement said.
Mohammed Al Tawil, general manager, Boehringer Ingelheim Middle East and Near East Area, said: “We are delighted to enter into an agreement with Cigalah Group and Tabuk… With this agreement we aim to reinforce our goal to make quality products and access to medication in the kingdom.
Dr Hamad Al Khamees, general manager Saudi Arabia Tabu, added: “Being associated with a global brand like Boehringer Ingelheim and locally with Cigalah Group gives us an opportunity to best leverage our expertise in the local production space. We are excited about the opportunity given to us and looking for future further cooperation with Boehringer Ingelheim.”
Saudi Arabia is the world’s largest per capita single market for medical products and equipment, accounting for 59.4 percent of theGulf’s overall pharmaceutical industry size.
The Boehringer Ingelheim group is one of the world’s 20 leading pharmaceutical companies. Headquartered in Germany, it operates globally with 142 affiliates and a total of more than 47,400 employees.
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