Global pharmaceutical giant GlaxoSmithKline (GSK), announced on Monday the acquisition of an additional 26 percent of stake in Glaxo Saudi Arabia Limited (GSAL).
Through this transaction, GSK now owns 75 percent of GSAL, which reinforces its footprint in the kingdom and reiterates its commitment to support the Government’s plans to diversify the economy and increase local manufacturing of pharmaceutical products, the company said in a statement.
The acquisition follows more than SR900 million that GSK is investing in its operation in Saudi Arabia over the next 3 years.
The intention is also to expand the production of Jeddah manufacturing site by 30 percent in the next 3 years with more investments planned by 2020.
Andrew Miles, vice president and general manager of GSK in the GCC, said: “GSK is a strong supporter of Saudi Arabia’s 2030 vision to increase local manufacturing of products and diversify the economy. The acquisition represents a step forward towards the strengthening of our operations in the Kingdom. Today, 80 percent of our portfolio is locally manufactured in Jeddah.”
“Building on 20 years of presence in the Kingdom, the acquisition will give us the flexibility to invest in areas where there are opportunities to further drive access and business performance in the country. GSK is also committed to develop local talent and to increase Saudization and diversity among our workforce in the kingdom,” added Luciano Andrade, country manager of GSK in Saudi Arabia.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.