Boehringer Ingelheim Enters Production Agreement In Saudi Arabia With Cigalah and Tabuk
Pharmaceutical giant Boehringer Ingelheim has entered into a local production agreement with Cigalah and Tabuk in Saudi Arabia. Boehringer Ingelheim has previously expressed interest in expanding into the Saudi Arabian market, and this deal will give the company a larger presence in the country as well as increase the amount of available treatment options in the Saudi Arabian market.
In this deal, Cigalah and Tabuk will manage and drive the packaging of 26 products for Boehringer Ingelheim from the beginning to the end of each product’s manufacturing process. Boehringer Ingelheim believes that having a contract with local manufacturers will allow the company to bring newer, more innovative drugs and treatment options to Saudi patients. Currently, local production accounts for only 15 percent of drug product demand in Saudi Arabia. The rest of that demand is met through importing drugs. This deal will help to improve and increase the local supply of drugs as health care expenditures are expected to grow in Saudi Arabia. By 2020, health care is expected to account for 6 percent of the GDP. In 2010, that number was 3.5 percent.
Boehringer Ingelheim has also said that it intends to continue local investment in Saudi Arabia in order to help develop the overall pharmaceutical industry in the country. According to the company’s press release, this move will bring BI new capabilities and promote a more effective supply chain as the company continues its expansion into Saudi Arabia.
Mohammed Al Tawil, the General Manager of Boehringer Ingelheim’s Middle East and Neart East Area Division, said that the company is committed to producing quality products for the Saudi Arabian market. “With the right infrastructure in place, Boehringer Ingelheim’ is dedicated to supporting the development of its partners and the communities in which it operates. To that end, Boehringer Ingelheim will continue to develop solutions that create a sound industry ecosystem and enrich life through pharmaceutical enhancements,” he said.
Tabuk is a pharmaceutical manufacturing company that is currently one of the local leaders in drug production in Saudi Arabia. Cigalah is a local health care distributor in the Saudi Arabian market. Boehringer Ingelheim believes that partnering with these two companies will help to grow the overall pharmaceutical sector in Saudi Arabia and drive socio-economic development in the region.