Ashmore Investment Saudi Arabia, has signed the first investment under its Industrial Initiative, with the acquisition of a minority stake through a primary capital increase in Pharco KSA, the Saudi subsidiary of Pharco Pharmaceuticals.

The signing between Ashmore and Pharco took place at the PIF Private Sector Forum.

As part of the transaction, Pharco is consolidating all its Saudi operations under Pharco KSA. The investment is intended to support Pharco KSA’s expansion in Saudi Arabia and to accelerate the construction and commissioning of a state-of-the-art pharmaceutical manufacturing facility spanning approximately 62,000 sq m in Al Madinah Industrial City.

Ahmed Al-Mohaisen, CEO, Managing Director and Board Director of Ashmore Investment Saudi Arabia, said: “This investment reflects our long-standing conviction in the Kingdom’s industrial sector and its strong growth potential, particularly in areas that enhance local content and domestic manufacturing. The Industrial Initiative is designed to attract high-value investments that are aligned with and support Vision 2030 objectives, and our partnership with Pharco, and SIC as anchor investor in the initiative, provides critical access to the Kingdom’s industrial ecosystem to deliver sustainable, long-term impact.”

The value of the investment has not been revealed.

The facility is designed to manufacture solid oral dosage forms and injectables, with built-in flexibility and ample room to expand into additional dosage forms over time. Initial production is targeted to focus on high-demand chronic and primary care treatments, including cardiovascular, diabetes and respiratory therapies, alongside a broader portfolio of essential medicines, reflecting both Saudi market needs and Pharco’s established product strengths. The facility supports Pharco KSA’s targets to commence local operations in 2027.

The transaction demonstrates the commercial viability of Saudi Arabia's industrial transformation and the effectiveness of strategic partnerships between Ashmore, an international investment manager, SIC as an anchor, and institutional strategic partner, and Pharco, an established regional operator. The partnership model exemplified by this transaction combining global emerging markets expertise with deep local knowledge is designed to accelerate the execution of high-quality industrial investments that strengthen domestic supply chains, enhance local content, and create sustainable employment, a statement said.

Fahad Alnaeem, CEO of SIC, added: “At SIC we focus on enabling global managers to deploy institutional capital effectively in Saudi Arabia. By providing cornerstone capital and strategic ecosystem and market access, we help reduce entry barriers and support development of competitive, locally anchored industrial platforms. Our partnership with Ashmore demonstrates that rigorous commercial discipline combined with strategic local partnership will deliver commercial returns and measurable economic impact”

Dr Sherine Helmy, Chairman of Pharco Corporation, said: “Pharco was founded with the purpose of improving access to healthcare and making a meaningful difference in people’s lives. We have built deep technical and operational capabilities across several countries, and have supported large-scale public health initiatives, including efforts to eliminate Hepatitis C in Egypt. Saudi Arabia is a core focus market for Pharco, underpinned by more than three decades of consistent medicine supply to the Kingdom. The capital increase from Ashmore represents the next phase of our commitment, accelerating local pharmaceutical manufacturing and strengthening medicine supply in line with Saudi Arabia’s Vision 2030 objectives.”

Pharco is the largest pharma manufacturer in MENA by volume, operating a portfolio of more than 400 brands across 15 therapeutic areas, with daily production capacity exceeding 1.5 million medication packs across its global manufacturing footprint, with 11 pharmaceutical manufacturing plants spanning more than 250,000 sq m.

This first investment in cooperation with Ashmore underscores the firm’s continued focus on priority sectors, including industrials, healthcare, and education, while highlighting the role of private capital in advancing Saudi Arabia’s economic diversification agenda.

The strategic partnership with Ashmore aims to advance the localisation of high-quality pharmaceutical manufacturing, strengthen medicine security and reduce reliance on imports, in line with Vision 2030 healthcare and industrial transformation objectives. - TradeArabia News Service