{"id":82249,"date":"2023-11-21T00:00:00","date_gmt":"2023-11-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2023\/11\/21\/as-part-of-turnaround-bid-spimaco-unit-partners-with-msd-to-make-advanced-diabetes-meds-in-kingdom\/"},"modified":"2023-11-21T00:00:00","modified_gmt":"2023-11-21T00:00:00","slug":"as-part-of-turnaround-bid-spimaco-unit-partners-with-msd-to-make-advanced-diabetes-meds-in-kingdom","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2023\/11\/21\/as-part-of-turnaround-bid-spimaco-unit-partners-with-msd-to-make-advanced-diabetes-meds-in-kingdom\/","title":{"rendered":"As part of turnaround bid, Spimaco unit partners with MSD to make advanced diabetes meds in Kingdom"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Climbing the pharma value chain: <\/strong><a target=\"_blank\" href=\"https:\/\/dammampharma.com.sa\/\" style=\"\" rel=\"noopener\">Dammam Pharma Co.<\/a>, a unit of Saudi Pharmaceutical Industries and Medical Appliances Corp. (<a target=\"_blank\" href=\"https:\/\/www.spimaco.com.sa\/\" style=\"\" rel=\"noopener\">Spimaco<\/a>), is partnering with US-based Merck Sharp & Dohme International (<a target=\"_blank\" href=\"https:\/\/www.msd.com\/\" style=\"\" rel=\"noopener\">MSD<\/a>) to manufacture treatments for type-two diabetes in the Kingdom, Spimaco <a target=\"_blank\" href=\"https:\/\/x.com\/SpimacoAddwaeih\/status\/1726238555305902256?s=20\" style=\"\" rel=\"noopener\">said on X<\/a>. Dammam Pharma says it will become the first first facility in the region to produce type-two diabetes treatments, according to <a target=\"_blank\" href=\"https:\/\/cdn.saudigazette.com.sa\/article\/637883\/SAUDI-ARABIA\/Pact-inked-to-manufacture-type-2-diabetes-medications-in-Saudi-Arabia\" style=\"\" rel=\"noopener\">Saudi Gazette<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What we know:<\/strong><\/p>\n<ul>\n<li>Production will start in early 2024;<\/li>\n<li>Dammam is looking to sell both at home and to regional markets;<\/li>\n<li>The two partners are talking up the transfer of \u201cadvanced pharma technologies\u201d to KSA. <\/li>\n<\/ul>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What we don\u2019t know:<\/strong> Which molecule(s) and brand(s) might be made at the Spimaco unit, but we\u2019re not talking insulin here: MSD\u2019s diabetes portfolio includes advanced molecules, among them DPP-4 and SGLT4 inhibitors as well as metformin in both combination and standalone therapies. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Sizing up the market: <\/strong>Nearly 18% of adult Saudis suffer from diabetes, Spimaco CEO Jerome Cabannes says. The total KSA market for pharma products stands at c. SAR 34 bn today and is set to grow to c. SAR 40 bn by 2030. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Spimaco is a turnaround play: <\/strong>Cabannes was until October Spimaco\u2019s <a target=\"_blank\" href=\"https:\/\/www.spimaco.com.sa\/media\/full_news\/455\" style=\"\" rel=\"noopener\">COO<\/a>, when he was asked to step up and lead the company. Spimaco has struggled in recent years, but a turnaround plan kicked off in late 2022 sees the company in the black for 9M 2023 with a net profit of SAR 40 mn (against a loss of SAR 67 mn in the same period last year), <a target=\"_blank\" href=\"https:\/\/ir.spimaco.com.sa\/media\/kvhmircr\/spimaco-3q23-earnings-release_20231106_en_final.pdf\" style=\"\" rel=\"noopener\">the company\u2019s earnings release (pdf)<\/a> shows. The improvement comes on the back of improving revenues and better control of selling, general, and administrative costs. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What are the planks of the turnaround? <\/strong>Shareholders are looking to create a \u201cnational champion\u201d for the industry and are talking up a management team with both solid business and pharma experience as well as an emphasis on \u201caccelerated delivery of M&A and business development\u201d strategy execution, according to a <a target=\"_blank\" href=\"https:\/\/ent.news\/2023\/11\/1080.pdf\" style=\"\" rel=\"noopener\">recent investor presentation (pdf)<\/a> that directly addresses \u201cWhat\u2019s different this time?\u201d <strong>The presentation identifies diabetes meds as one of its priority markets.<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Who\u2019s who: <\/strong>Dammam Pharma Co. specializes in medical and pharmaceutical products. Merck & Co., Inc., is an American multinational pharmaceutical company based in New Jersey that operates as Merck Sharp & Dohme or <a target=\"_blank\" href=\"https:\/\/www.msd.com\/\" style=\"\" rel=\"noopener\">MSD<\/a> internationally.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REMEMBER- Plenty of players are working to make the Kingdom a hub for pharma <\/strong><strong>manufacturing<\/strong>, looking to serve both the large domestic market and to capture a share of regional exports. <a target=\"_blank\" href=\"https:\/\/www.nupco.com\/\" style=\"\" rel=\"noopener\">Nupco<\/a>, a Public Investment Fund company and one of KSA\u2019s leading medical procurement companies, signed an MoU last month with local firm <a target=\"_blank\" href=\"https:\/\/sudairpharma.com\/\" style=\"\" rel=\"noopener\">Sudair Pharma<\/a> and global major drugmaker <a target=\"_blank\" href=\"https:\/\/www.sanofi.com\/en\" style=\"\" rel=\"noopener\">Sanofi<\/a> to start the local production of insulin.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Drugmakers are talking up export potential and the transfer for advanced pharmaceutical manufacturing tech to Saudi Arabia<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4373],"tags":[226,375,10,374,377,2636,376,378],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-82249","post","type-post","status-publish","format-standard","hentry","category-pharma","tag-dammam-pharma","tag-diabetes","tag-enterpriseam-ksa","tag-msd","tag-nupco","tag-pharma","tag-sanofi","tag-sudair-pharma","wpautop","entry"],"acf":{"mongo_id":"a2c9f12d-1257-4a9f-b3e9-afd58bbb0e02","is_powered_by":false,"story_type":"1","photo_url":"","photo_position":"above","homepage_title":"","full_issue_title":"As part of turnaround bid, Spimaco unit partners with MSD to make advanced diabetes meds in Kingdom","related_issue":[82242],"teaser":"Drugmakers are talking up export potential and the transfer for advanced pharmaceutical manufacturing tech to Saudi Arabia","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/1\/.afdf5738-942c-43c9-84d6-2701054efe14.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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