DUBAI — Boehringer Ingelheim, one of the world's leading pharmaceutical companies, entered into a tripartite agreement with Cigalah and Tabuk for local production of medicine in the Kingdom. Boehringer Ingelheim seeks to expand its business interest in Saudi Arabia with innovative medicines. Tabuk, a local manufacturing company, wants to strengthen its products and services offering to Saudi patients while Cigala is a major healthcare distributor. The three have decided to combine scientific know-how, technical expertise, and local infrastructure to serve the Saudi patients. Under the agreement, Cigalah and Tabuk will manage and carry out drive complex secondary packaging projects of 26 products for Boehringer Ingelheim. With Boehringer Ingelheim's investment interest to expand in the Kingdom through the local manufacturing and distribution units, the company seeks to offer more innovative medicines in Saudi Arabia for local patients. The partnership also seeks to open job opportunities for jobseekers and contribute to the Kingdom's initiatives to give Saudi citizens quality healthcare. The company has established its full end-to-end capabilities in Saudi Arabia and will continue to increase its own local investments in the pharmacutical industry and create jobs for local talents to spur economic developments. The contract was signed by Dr. Abdul Aziz AL Serafi, CEO consultant of Cigalah Group; Dr Hamad Al Khamees, General Manager Saudi Arabia Tabuk, and Mohammed Al Tawil, General Manager, Boehringer Ingelheim Middle East and Near East Area. The local production of medicine in Saudi Arabia will meet 15 percent of the demand. Currently, import account for 85 percent of medicine in the domestic market. The locally-grown companies primarily make generic drugs, while some undertake under-license manufacturing and packaging on behalf of multinational pharmaceutical companies for supply in the domestic and regional markets. The agreement is aimed at establishing new capability and created a more effective supply chain to support Boehringer Ingelheim's ambitious business plan and expansion in Saudi Arabia. As the healthcare expenditure is forecast to grow from 3.5 percent in 2010 to 6 percent of the GDP by 20201, the new partnership marks a significant step towards meeting the demand for quality medicines in the region . “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 easy access to medication in the Kingdom,” said Mohammed Al-Tawil, General Manager, Boehringer Ingelheim Middle East and Near East Area, said, “All of these activities show Boehringer Ingelheim's commitment to supporting innovation and growing our business further in KSA – the most strategic pharma markets in the region,” he added. “With the right infrastructure in place, Boehringer Ingelheim' is dedicated to supporting the development of its partners and the communities in which it operates.” Dr. Abdul Aziz AL Serafi, CEO consultant of Cigalah Group, said: “We are happy to be associated with Boehringer Ingelheim and are sure that the cooperation between the two companies will be beneficial for the pharmaceutical sector with regards to quality, safety and accessibility of medication in the Kingdom.” Dr Hamad Al Khamees, General Manager of Saudi Arabia Tabuk , said: “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 cooperation with Boehringer Ingelheim.” The tripartite agreement enables Boehringer Ingelheim to contract Cigalah for the secondary packaging and authorizes Cigalah to implement and conduct the packaging production at Tabuk facilities. Saudi Arabia is the world's largest single market for medical products and equipment, accounting for 59.4 percent of the Gulf's overall pharmaceutical industry size1. Total market size in KSA constitutes 24 percent of international companies, 41 percent top 10 multinational companies and 35 percent local companies. Among the GCC countries, Saudi Arabia has the largest number of local pharmaceutical manufacturing plants totaling 27 with an investment of $619 million. Packaging is a highly regulated end-stage of the drug production process aimed not only at safeguarding the drug against contamination but also ensuring its durability, visibility, sterility and strength. The partnership is aimed at optimization of the packaging process and providing medicines as finished goods which can help in reducing costs while maintaining the international product quality. — SG
