Staff Report :

Citi Pharma has announced a joint venture agreement with All Care Group of Investment to establish a state-of-the-art Active Pharmaceutical Ingredient (API) and formulation facility in Saudi Arabia.

Under the agreement, Citi Pharma will leverage its technical expertise and facilitate technology transfer to enhance local capabilities. All Care Group will manage land acquisition and infrastructure development.Healthcare in Crisis: Male Doctors Flee, Women Opt-Out, Warns PIMA

The partnership aims to address healthcare needs in Saudi Arabia and the broader MENA region, which has a population of about 500 million. It also positions Citi Pharma to expand into international markets, including India and China.

According to IQVIA, the Middle East and Africa market is expected to reach $51 billion in 2024. The Middle East market has posted a CAGR of 4.1% over the last five years and is expected to grow at 6.8% over the next five years. Saudi Arabia alone makes up 36% of the total sales in the region, estimated at $11 billion. It is the third fastest-growing market in the MEA region.

In 2023, the Saudi government allocated $50.4 billion to healthcare, representing 16.96% of its overall budget, reflecting its priority status. Opportunities for growth in the sector are abundant, particularly under the Vision 2030 initiative, which plans to invest over $65 billion to enhance healthcare infrastructure and reorganize health services.

CPHL is trading at a trailing P/E of 11.7x, a 61% discount from the industry average trailing P/E of 19x.