New pharmaceutical deal to boost local production

Updated 03 May 2014
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New pharmaceutical deal to boost local production

Boehringer Ingelheim, a leading pharmaceutical company, has entered into a tripartite agreement for local production in Saudi Arabia with Cigalah and Tabouk.
This came from Boehringer Ingelheim’s interest in expanding in Saudi Arabia with innovative medicines.
Tabuk, the pharmaceutical manufacturing company, as a local manufacturing leader who wants to strengthen its products and services offering to Saudi patients, and Cigala as a major health care distribution player with strong local infrastructure — along with Boehringer Ingelheim, all have decided to combine scientific knowhow, technical expertise, and local infrastructure to serve the Saudi patients.
With this contract, Cigalah and Tabuk will manage and drive complex secondary packaging projects of 26 products for Boehringer Ingelheim from the starting point until full implementation to become finished goods.
This is the first milestone toward Boehringer Ingelheim’s future local primary manufacturing in the kingdom.
With Boehringer Ingelheim’s investment, interest to expand in Saudi Arabia and partnering with local manufacturing units, the company will be able to offer more innovative medicines for Saudi patients, helping them to improve health and quality of life.
In addition, the partnership aims to seed job opportunities, and act as a business driver where Boehringer Ingelheim contributes to the development of the overall pharmaceutical sector.
The company has established its full end-to-end capabilities in Saudi Arabia and will continue to increase its own local investments in the pharmaceutical space as well as local talent in order to drive socio-economic development; creating value for individuals and society as a whole.
The contract between the companies 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 in Saudi Arabia satisfies only 15 percent of the demand and imports account for 85 percent of the domestic market.
The locally-grown companies primarily make generic drugs, while some also undertake under-license manufacturing and packaging on behalf of multinational pharmaceutical companies for supply in the domestic and regional markets.
Th agreement will help to establish new capabilities and capacities and a more effective supply chain to support Boehringer Ingelheim’s ambitious business plan and expansion in Saudi Arabia.
As the health care expenditure is forecasted to grow from 3.5 percent in 2010 to 6 percent of GDP by 2020, this partnership marks a significant step toward meeting the demand for quality medicines in the region while strengthening the infrastructure to locally provide therapies at par with the international standards.
Mohammed Al-Tawil, general manager, Boehringer Ingelheim Middle East and Near East Area, said: “We are delighted to enter into an agreement with Cigalah Group and Tabuk.


Oil rises after US Navy destroys Iranian drone

Updated 19 July 2019
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Oil rises after US Navy destroys Iranian drone

  • The International Energy Agency is revising its 2019 global oil demand growth forecast to 1.1 million barrels per day
  • Speculators have exited options positions that could have provided exposure to higher prices in the next several years

TOKYO: Oil prices rose more than 1 percent on Friday after the US Navy destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, again raising tensions in the Middle East.
Brent crude futures were up 82 cents, or 1.3 percent, at $62.75 by 0100 GMT. They closed down 2.7 percent on Thursday, falling for a fourth day.
West Texas Intermediate crude futures firmed 61 cents, or 1.1 percent, at 55.91. They fell 2.6 percent in the previous session.
The United States said on Thursday that a US Navy ship had “destroyed” an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran said it had no information about losing a drone.
The move comes after Britain pledged to defend its shipping interests in the region, while US Central Command chief General Kenneth McKenzie said the United States would work “aggressively” to enable free passage after recent attacks on oil tankers in the Gulf.
Still, the longer-term outlook for oil has grown increasingly bearish.
The International Energy Agency (IEA) is reducing its 2019 oil demand forecast due to a slowing global economy amid a US-China trade spat, its executive director said on Thursday.
The IEA is revising its 2019 global oil demand growth forecast to 1.1 million barrels per day (bpd) and may cut it again if the global economy and especially China shows further weakness, Fatih Birol said.
“China is experiencing its slowest economic growth in the last three decades, so are some of the advanced economies ... if the global economy performs even poorer than we assume, then we may even look at our numbers once again in the next months to come,” Birol told Reuters in an interview.
Last year, the IEA predicted that 2019 oil demand would grow by 1.5 million bpd but had already cut the growth forecast to 1.2 million bpd in June this year.
Speculators have exited options positions that could have provided exposure to higher prices in the next several years, market participants said on Thursday.
US offshore oil and gas production has continued to return to service since Hurricane Barry passed through the Gulf of Mexico last week, triggering platform evacuations and output cuts.
Royal Dutch Shell, a top Gulf producer, said Wednesday it had resumed about 80 percent of its average daily production in the region.