The Malaysian company will team up with Saudi Arabian firm Modern Healthcare Solutions Company Limited in order to construct and manage a pharmaceutical manufacturing plant in Sudair Economic City, Riyadh.
“The MENA (Middle East and North Africa) region remains an interesting prospect with current economic conditions,” the company told this publication. “The growth, market accessibility and government commitment towards healthcare have made Saudi Arabia the key component for Pharmaniaga’s market expansion.”
The joint venture is set to last 15 years and will, on top of construction of the plant, focus on production, marketing and supply of pharmaceuticals within the region.
Speaking in a press release, Chairman of Modern, Prince Turki bin Abdulrahman bin Abdulaziz Al Saud, said: “The principal aim of this Joint Venture would be to significantly accelerate our joint capabilities to better serve the fast growing Saudi and the greater Middle East market.”
According to Dubai-based business publication Zawya, the partnership will be at a cost of Saudi Arabian Riyal 600m ($160m).
However, the company was unable to confirm this figure as the firm is still in the process of compiling the numbers, nor could it divulge any further details regarding what exactly the plant would be manufacturing.
There have been a number of expansions in the Middle-East for both pharma companies and outsourcing firms.
With regards to manufacturing, the region got a thumbs-up as Pharma Giant Pfizer began construction on a new plant in King Abdullah Economic City, Saudi Arabia earlier this year. The facility, set to include solid dose manufacturing, packaging and warehousing, will be operational in 2015 and will produce 18 million packs per year.
According to Pharmaniaga Saudi Arabia is not a big player for the pharmaceutical industry as a whole but is key for the MENA region.