Saudi Pharmaceutical Industries & Medical Appliances Co (spimaco)
Saudi Pharmaceutical Industries &
Medical Appliances Co (SPIMACO) - OTC Healthcare - Saudi Arabia-Dissertation Writing Help
Strategic Direction
·
The core activities of SPIMACO
and its consolidated subsidiaries are the manufacture and marketing of
medicine, medical appliances and supplies inside the Kingdom and abroad, as
well as the distribution of various medical products, disposable surgical
clothing, operation room sheets and other items.
·
SPIMACO’s strategy for growth
involves providing added value to its customers. The company will continue to
develop a constant stream of products and presentations aimed at professionals,
patients and the public. Branded generic products will be the main focus of the
company, particularly in sectors that offer greater potential for growth, such
as analgesics, cough, cold and allergy (hay fever) remedies, digestive remedies
and medicated skin care. Besides its agreements with multinational suppliers
such as GlaxoSmithKline, the company will also benefit from the new agreements
signed in 2007 with international operators to manufacture some of their brands
locally under licence. These included Lilly of the USA, MEDA of Sweden and
Biogeneric
Key Facts
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Full name of company:
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Saudi Pharmaceutical Industries
& Medical Appliances Co (SPIMACO)
|
|
Address:
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PO Box 20001, Riyadh 11455, Saudi
Arabia
|
|
Tel:
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+966 1 477 4481
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Fax:
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+966 1 477 3961
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www:
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www.SPIMACO.com.sa
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Activities:
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The company is engaged in the
manufacture, production, development and marketing of medicinal products and
pharmaceutical formulations, medical supplies, basic and intermediary
med-petrochemicals and their derivates, and investments in related
industries, inside and outside the Kingdom. The company also has a total
investment of SR308 million in the following companies: ARAC Health Care Co,
90%, and Arabian Manufacture of Medical Products Co (Enayah), 51%.
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Source: Euromonitor
International from company sources
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Year ended 31 December
|
2005
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2006
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2007
|
|
Net sales SR million
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648.9
|
727.8
|
797.7
|
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Net profit SR million
|
96.2
|
109
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121.8
|
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Number of employees
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309
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325
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400
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Source: SPIMACO’S
financial reports
Company Background
·
Saudi Pharmaceutical Industries
& Medical Appliances Corporation (SPIMACO) is the largest local
pharmaceutical company in the Kingdom, established in 1986 with fully paid-up
capital of SR600 million. The company was the first to join the Saudi Joint Stock
Market at the time of its establishment.
·
Besides its own wide range of
products, the firm produces pharmaceuticals under licence for Pfizer Inc,
Bristol-Myers Squibb Co, Novartis AG, Janssen Cilag, Abbott Laboratories Inc
and CH Boehringer Sohn GmbH, among others. The company aimed to increase its
licensed range of products with new agreements signed in 2007 with three
companies; Lilly, MEDA and Biogeneric.
·
Core areas include: analgesics,
antihistamines/allergy remedies (systemic), cough remedies and expectorants.
The company also produces anti-rheumatics, antibiotics, anti-microbial,
anti-tuberculosis and anti-diabetic products.
·
In 2007 the company registered
12 new products at the Saudi Ministry of Health, increasing its total number of
registered products to 787, with another 33 products in the process of
registration. During the same year, the company was granted the European cGMP
certificate from the IMB (Irish Medical Board), a certificate that will allow
the company to enter European markets.
Production
·
SPIMACO’s main manufacturing
facility, the Al-Qassim Pharmaceutical Plant was planned, constructed and
equipped to the highest quality levels. SPIMACO has earned a number of national
quality awards and attained major international certifications such as ISO
9001:2000. The production facility in Al-Qassim, having a site area of 150,000
square metres and a built area of 60,000 square metres, is comprised of the
following departments:
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Liquid manufacturing and
packaging department
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Oral solids manufacturing and
packaging department
·
Aseptic manufacturing and
packaging department dedicated for manufacturing liquid injectables, drops and
ointments.
·
Cream and ointment
manufacturing and packaging department
·
Penicillin manufacturing and
packaging department, producing dry syrup, capsules, film-coated tablets and
powders.
·
The company primarily serves
the local market but has become increasingly active in exports, shipping goods
to 13 markets in the Arab world including other GCC countries, Jordan, Yemen,
Lebanon, Sudan, Egypt, and Algeria. Export sales accounted for 17% of the
company’s total turnover in 2007.
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Location
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Product type/format
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Total production in 2007
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Al Qassim, Saudi Arabia
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Antibiotics
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82 million units
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Al Qassim, Saudi Arabia
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Solid dosage forms/tablets
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798 million tablets
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Al Qassim, Saudi Arabia
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Powder in bottles
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0.5 million units
|
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Al Qassim, Saudi Arabia
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Liquid in bottles
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22 million units
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Al Qassim, Saudi Arabia
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Cream and ointments in tubes
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6.9 million units
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Al Qassim, Saudi Arabia
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Suppositories
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6.4 million units
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Al Qassim, Saudi Arabia
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Sterile products (ampoules)
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2.9 million units
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Al Qassim, Saudi Arabia
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Antiseptics and disinfectants
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1.6 million units
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Source: Trade
press, company research, trade interviews
Competitive Positioning
·
The company is a leading
pharmaceutical producer in the Kingdom and has been able to maintain its
leadership in this market with steady growth in its share, achieved over the
review period and into 2007. Besides its massive range of branded generics that
cover many OTC healthcare sectors, one of the most distinct advantages of
SPIMACO’s strategy is its relations with multinational companies, through which
many key brands are produced locally under licence.
·
In 2007, the company was
dominant in three sectors: analgesics, cough, cold and allergy (hay fever)
remedies and adult mouth care, and appeared strong in others such as digestive
remedies, medicated skin care and eye care. The company performed well in 2007
in all except eye care and adult mouth care where its share declined marginally
because of weak activities. Overall, the company was able to retain its leading
position in OTC healthcare and to achieve a marginal increase in its share
since 2006, reaching almost 13% in 2007.
·
The company appeared to be weak
in vitamins and dietary supplements (although its iron supplements brand which
is positioned as an Rx drug was the best-selling in its category) but is expected
to make significant gains over the forecast period as it has many OTC
healthcare products at the development stage. The company will also benefit
from the new agreement signed with Lilly in 2007, enabling it to commence the
manufacture of Lilly products targeted at those who suffer from osteoporosis.
·
The best performing brands of
the company in 2007 include Rofenac, Sapofen and Fevadol Extra in analgesics;
Flutapp, Kafosed in cough, cold and allergy remedies, Peptazol and Proton in
digestive remedies. SPIMACO was among the most active companies in terms of new
product launches, advertising and promotion. The company managed to
successfully launch products in most of the major therapeutic classes in the
Saudi and regional markets. Within OTC healthcare, the company’s most important
launches in 2007 included Betadine in medicated skin care, Lorinase and Neorin
in cough cold and allergy (hay fever) remedies, as well as many new formats
from Rofenac and Sapofen in analgesics
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Product type
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Value share
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Rank
|
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Analgesics
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27%
|
1
|
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Cough, cold and allergy remedies
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19%
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1
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Adult mouth care
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31%
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1
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Medicated skin care
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3%
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9
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Eye care
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1%
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9
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Digestive remedies
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3%
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11
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Source: Euromonitor
International
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