Saudi CPhI Signs $266 Million Gene Therapy Deal

At the first-ever CPhI (Convention on Pharmaceutical Ingredients) conference held in the Middle East, two Saudi Arabian institutions signed an agreement with Vertex Pharmaceuticals aimed at enhancing the country’s production capacity in the field of gene therapy.

The government announced in a press release on December 11 that the agreement is expected to generate $266 million (equivalent to 1 billion Saudi riyals) in economic benefits over the next five years, as part of the country’s strategic plan to become a global biotechnology center.

According to the official press release, both the Ministry of Industry and Mineral Resources and the Ministry of Investment and Health were involved in signing the memorandum of understanding with Vertex. Saudi Arabia aims to enhance domestic R&D capabilities, expand biomanufacturing facilities for cell and gene therapies, and cultivate a new generation of health professionals.

For Vertex, the company views Saudi Arabia as a market with a large potential patient population. Vertex, in collaboration with CRISPR Therapeutics, is developing a new gene therapy called Casgevy, aimed at treating sickle cell disease and beta-thalassemia. According to Vertex's recent investor report, approximately 23,000 patients in Saudi Arabia may be suitable for Casgevy treatment, representing part of the drug's multi-billion dollar global market potential. Another report indicates that as of this summer, the drug has been approved in several countries and regions, including the U.S., U.K., EU, Saudi Arabia, and Bahrain.

Vertex CEO Dr. Reshma Kewalramani stated, "We are honored to partner with the Kingdom of Saudi Arabia to advance innovation that aligns with Saudi Vision 2030. Vertex is committed to developing and discovering transformative medicines for patients with serious diseases such as sickle cell disease and beta-thalassemia. This partnership is another critical step toward providing such medicines to patients in the Kingdom and ensuring they have access to cutting-edge therapies."

Other transactions announced at the CPhI conference include UAE-based pharmaceutical company Julphar's commitment to invest $80 million in building an advanced biopharmaceutical facility, which is planned to launch in the first quarter of 2025.

Additionally, according to another press release from the Saudi Arabian government, manufacturer Zeta Gulf has committed to establishing a new drug production plant in Saudi Arabia.

Last January, the Saudi Arabian government announced its biotechnology promotion plan as part of its goal to increase domestic drug production from 20% to 40% by 2030. This national strategy, known as "Vision 2030," also aims to position Saudi Arabia as a leader in the biotechnology field in the region over the coming years.