April 30, 2024

Abdi ibrahim extends its healing touch to the gulf

Abdi İbrahim forms a joint venture with Saudi Cigalah Healthcare, laying the foundation for expansion into Saudi Arabia and beyond, prioritizing exports as the initial step

Abdi İbrahim extends its healing touch to the Gulf

Maintaining its uninterrupted leadership in the Turkish pharmaceutical industry for 22 years, Abdi İbrahim has made yet another addition to its strong roster of business allies, setting its sights on the Gulf markets. Through the partnership with Cigalah Healthcare, a leading pharmaceutical and consumer health company in Saudi Arabia and the Gulf region, Abdi İbrahim's innovative medicines will be exported to countries in the region, starting with Saudi Arabia. Describing the partnership, which proposes technology transfer for the production of some products in Saudi Arabia within two years and local production afterward, as a "historic milestone", Abdi İbrahim Chairman Nezih Barut said, " This joint venture fills us with pride as we bring innovative medicines to the Saudi people and bolster our nation's economy through exports. Anticipating the beginning of a success story, our journey starts in the Saudi market, with plans to expand throughout the Gulf region. We aspire for this narrative to serve as a pivotal model for economic cooperation between Türkiye and Saudi Arabia. Teaming up with two illustrious companies with centuries-old legacies, we are committed to achieving success through diligent effort.”

Abdi İbrahim, the healing power of Türkiye, has forged yet another significant partnership in alignment with its global expansion strategy. "Abdi Cigalah Pharma," a joint venture entity established with a 50 percent stake held by Cigalah Healthcare, a prominent entity in Saudi Arabia and the Gulf region's pharmaceutical and consumer health sectors, was unveiled during a signing ceremony in Jeddah, Saudi Arabia on April 29.
Abdi İbrahim Chairman Nezih Barut, Abdi İbrahim CEO Dr. Süha Taşpolatoğlu, and Cigalah Healthcare Chairman Yaser Naghi attended the partnership signing ceremony. This alliance is poised to facilitate Abdi İbrahim's robust entry into the Gulf region, identified as a strategic priority.

The alliance between Abdi İbrahim, Türkiye's venerable pharmaceutical leader boasting a 112-year legacy, and Cigalah Healthcare, Saudi Arabia's century-old stalwart, encompasses the export of Abdi İbrahim's cutting-edge products to Gulf nations, starting with the Saudi market. As part of the collaboration, there are also intentions to conduct secondary packaging for select products from Türkiye within Saudi Arabia, along with initiating technology transfer processes for local production of certain products within the Saudi borders over the coming two years.

"Although we're a 100% local enterprise, our aspirations span the globe"

Speaking at the ceremony, Nezih Barut commenced his speech by extending gratitude to Cigalah Healthcare Chairman and CEO Yaser Naghi, whom he fondly referred to as "my friend and partner," along with the entire team at Cigalah Healthcare, for their hospitality. Characterizing the partnership announcement as a momentous milestone, Nezih Barut, chairman of Türkiye's longest standing and largest pharmaceutical company, expressed that Cigalah Healthcare’s accomplishments across various sectors in the Saudi market served as a catalyst for collaboration. He remarked: "For 112 years, we have remained a purely local Turkish pharmaceutical enterprise. Yet our vision has always reached beyond borders. Our ambition is to ascend to the ranks of the world's top 100 pharmaceutical firms, embodying sustainability, innovation, and purpose. Hence, we have forged invaluable partnerships and joint ventures with leading international pharmaceutical entities. Today, we proudly introduce Abdi Cigalah Pharma—a partnership with Cigalah Healthcare—which stands shoulder to shoulder with these strong alliances. This is a proud moment for all.”

Products first, then technology transfer

Barut affirmed their commitment to offering Abdi İbrahim's cutting-edge products to the people of Saudi Arabia through the newly established company, in which Abdi İbrahim holds a 50 percent stake, with the remaining 50 percent owned by Cigalah Healthcare. He disclosed collaborations with Alpha Pharma, a subsidiary of Cigalah Healthcare, in production, and with the organization itself in marketing. "On one front, we will export Abdi İbrahim's pharmaceuticals from Türkiye. Simultaneously, we will bolster local pharmaceutical production in Saudi Arabia by conducting secondary packaging for select products originating from Türkiye. Furthermore, we are already strategizing our investments to facilitate technology transfers for local production in Saudi Arabia within the next two years," Barut emphasized, underscoring the meticulous planning behind the portfolio of Abdi Cigalah Pharma, headquartered in Jeddah.

"Our ambition is to surpass over $133 million in size within five years”

Barut outlined their initial plans to introduce medications for central nervous system, cardiovascular, respiratory, and oncology treatment to the Saudi market, with gradual expansion to include antidiabetic, ophthalmological, biosimilar drugs, and consumer health products. Nezih Barut delineated the company's objectives as follows: "Through our joint venture, we aim to achieve a size exceeding SAR 500 million (Saudi Arabian Riyal), equivalent to over $133 million, within five years. Our strategy to accomplish this objective will be centered around expanding our exports.

Highlighting Saudi Arabia as a market of burgeoning potential and strategic importance in the pharmaceutical sector, Nezih Barut emphasized their strong market entry facilitated by a well-suited partner. He underlined the invaluable market expertise of Cigalah Healthcare, the largest pharmaceutical distributor in Saudi Arabia, as a significant asset to this collaboration.

"We are forging a robust and enduring partnership poised to yield positive outcomes in the region.”

Nezih Barut added: "We have partnered with a strong group. We consider ourselves fortunate in this regard. Furthermore, we have great confidence in our product offerings. I firmly believe that our innovative products, crafted within facilities servicing the world's leading pharmaceutical firms, will swiftly carve out a prominent position in the market. We will further our efforts to be among the top-ranking players in the market. Today marks the inception of a strong and enduring collaboration destined to yield favorable outcomes not only in the local pharmaceutical landscape but across the entire region. Anticipating the beginning of a success story, our journey starts in the Saudi market, with plans to expand throughout the Gulf region. We aspire for this narrative to serve as a pivotal model for economic cooperation between Türkiye and Saudi Arabia. Teaming up with two illustrious companies with centuries-old legacies, we are committed to achieving success through diligent effort.”

"This will catalyse advancements in the pharmaceutical sector across the Middle East.”

Reflecting on the partnership, Cigalah Healthcare Chairman and CEO Yaser Naghi remarked: "Our strategic collaboration with Abdi Ibrahim reinforces our commitment to elevating healthcare standards across the region. By leveraging the strengths of both organizations and fostering cooperation in areas such as research and development, manufacturing, and marketing, the joint venture will facilitate market access, promote quality healthcare, stimulate economic growth, foster bilateral partnerships, and contribute to the advancement of the pharmaceutical industry in the Middle East.”

About Abdi İbrahim
Turkish pharmaceutical industry leader Abdi İbrahim’s journey of healing began in a small pharmacy store established in 1912 by the Pharmacist Abdi İbrahim Bey in Küçükmustafapaşa, Istanbul. Today, in addition to its partnerships with more than 30 licensing firms across the globe, Abdi İbrahim develops its products and boasts the largest portfolio in the industry, with 250 brands and over 500 products.
With its powerful vision, dynamic structure, and contemporary outlook, Abdi İbrahim has held a leading position in the Turkish pharmaceutical industry since 2002. Today, Abdi İbrahim has subsidiaries operating in 17 countries outside Türkiye, exports to more than 70 countries from the European Union to Canada, North Africa to Asia, and generates the highest employment rate in the Turkish pharmaceutical industry with 5,500 qualified employees.
Abdi İbrahim's Esenyurt Production Complex in Istanbul houses the company’s R&D Centre, Chemical Products Production Facility, Türkiye’s largest biotechnological manufacturing facility AbdiBio, Hormone Production Facility, Sterile Ophthalmology & Sterile Inhalation Production Facility, and Chemical, Oncology, and Sterile Supplementary Production Facility. Abdi İbrahim also has R&D centers and production facilities in Kazakhstan and Algeria.
www.abdiibrahim.com.tr

About Cigalah Healthcare
Cigalah Healthcare was established in 1987 by Mr. Yaser Naghi with headquarters in Jeddah, Saudi Arabia. The company distributes pharmaceuticals and consumer healthcare products in the Kingdom and has managed to build strong and successful business partnerships with multinational, regional, and local pharmaceuticals, and consumer healthcare companies. Cigalah Healthcare is a leading distributor of pharmaceuticals and healthcare products in the Kingdom of Saudi Arabia with sales exceeding USD 2 billion. The organization is building its vision to continue being a leading and major force in the sales and distribution of healthcare products in Saudi Arabia and other GCC markets by extending its footprint to cover the whole pharmaceutical value chain. Cigalah Healthcare’s strategy aligns seamlessly with Saudi Vision 2030 in supporting the national security of medicines and encouraging the localization of critical medicine production through its manufacturing arm Alpha Pharma’. Additionally, Cigalah Healthcare supports the objective of considering Saudi Arabia as a hub in connecting continents by investing in state-of-the-art logistic facilities in Jeddah, Riyadh, Dammam, Medina, Tabuk, and Khamis Mushait. In addition to Alpha Pharma, which is fully owned by Cigalah Healthcare, Cigalah Healthcare has direct investments in other local and regional pharmaceutical companies including Deef Pharma and Batterjee Pharma in Saudi Arabia, Julphar RAK in the United Arab Emirates and AUG in Egypt.