Swiss drugmaker Sandoz, in partnership with Tabuk Pharmaceutical Manufacturing and under the patronage of the Local Content and Government Procurement Authority, plans to start the first phase of a project to localize the manufacturing and packaging of specialty drugs in Saudi Arabia during the first quarter of 2027, according to Sameh El-Bagoury, head of Sandoz in Saudi Arabia, as told to Al-Eqtisadiah.

By the end of 2028, broader production from the project will be completed, which El-Bagoury said represents a strategic step to transfer technology for manufacturing highly specialized drugs to Saudi Arabia.

These drugs include immunosuppressants used for organ transplant patients and antibiotics for treating critical conditions, enhancing drug security and supporting localization targets for the pharmaceutical industry.

The project will provide treatment for about two million people in Saudi Arabia.

Regarding its plans in the Saudi market, he said Sandoz currently holds about 1.5% of the Saudi pharmaceutical market, which is estimated at around $15 billion.

The company aims to double its market share over the next five years, benefiting from the growth of the healthcare sector and increasing demand for specialty drugs and biosimilars.

El-Bagoury explained that technology transfer is not limited to equipment or production lines but includes operational knowledge, technical systems, and training programs.

This enables qualifying Saudi cadres capable of managing manufacturing operations according to the highest global standards, ensuring sustainable local production and improving supply chain efficiency.

The project will provide treatments for about two million patients in Saudi Arabia, as drug manufacturing undergoes strict regulatory and oversight procedures, passing through multiple stages of approval and qualification before reaching full commercial production.

Sandoz 2

Efforts to localize biologic drug manufacturing in Saudi Arabia

El-Bagoury described the partnership with Tabuk Pharmaceutical Manufacturing as different from traditional supply agreements because it is based on transferring part of the pharmaceutical value chain into Saudi Arabia through manufacturing, packaging, and building operational capabilities, rather than just supplying products.

Tabuk was chosen for its expertise in pharmaceutical manufacturing and an industrial structure capable of accommodating modern technologies.

Read also: Does AI drug development live up to the hype?

The head of Sandoz in Saudi Arabia clarified that Sandoz's global portfolio includes about 1,300 drugs, while currently about 200 drugs are available in the Saudi market, which offers opportunities to localize more products in the coming phase.

He also revealed that work is underway to study the localization of biologic drug manufacturing, despite the complexity of their technologies, due to their role in enhancing drug security and reducing treatment costs.

El-Bagoury estimated spending on this category of drugs in Saudi Arabia at about $5 billion, while similar biologic drugs can achieve savings ranging between 30-40%, supporting healthcare spending efficiency and expanding patient access to treatment.

Read also: Saudi Arabia's shipping and food and drug authorities launch initiative to enhance pharmaceutical supply chains

Priority to meet the needs of the Saudi market

The head of Sandoz in Saudi Arabia explained that the priority during the current phase will be to meet the needs of the Saudi market before expanding exports of locally manufactured products to regional markets, in line with Saudi Vision 2030 goals to strengthen Saudi Arabia's position as a regional hub for pharmaceutical and biotechnology industries.

Sandoz 3

He confirmed that investment in Saudi Arabia is not limited to providing medicines but extends to knowledge transfer and building local capabilities, supporting the development of a more sustainable pharmaceutical sector capable of meeting future treatment needs.

Sandoz was founded in Switzerland 150 years ago, is listed on the Swiss stock exchange, and has been present in the Saudi market for 50 years. About three years ago, Saudi Arabia became the headquarters for its regional center managing operations in the Middle East.

Sandoz recorded net global sales of $11.1 billion in 2025.