Sothema, Morocco’s leading pharmaceutical manufacturer, is contemplating the establishment of a regional branch in the Kingdom of Saudi Arabia to target the Gulf region within the next three years, according to Lamiaa Tazi, the company’s CEO and Chairwoman of the Board, in an interview with Al-Sharq.
The family-owned company, founded in 1976, operates seven production lines manufacturing medicines at a capacity of nearly 70 million units per year.
Last year, it recorded revenues of $250 million, marking a 10% annual increase, with profits reaching around $26.3 million.
In Morocco, the pharmaceutical industry ranks second in Africa, with over 100 companies and laboratories generating revenues exceeding 21 billion dirhams in 2022.
The total production capacity of the sector amounts to approximately 450 million medicine packages, as per the Moroccan Federation of Pharmaceutical Industries and Innovation.
Tazi stated that the anticipated factory in Saudi Arabia would be crucial for the company’s international expansion strategy, aiming to meet the local market’s needs with modern medications at competitive prices.
This move aligns with Riyadh’s plans to establish a robust and competitive pharmaceutical industry and cater to the markets of the Gulf Cooperation Council countries.
Sothema currently exports 10% of its production to West African countries, Arab states, and Gulf countries, in addition to providing its services in industrial handling for global laboratories.
The company’s CEO expects continuous export growth in the coming years as it nears licensing agreements in several countries to market a range of modern medications.
The new factory in Saudi Arabia is expected to specialize in the production of modern medicines. Tazi did not disclose the anticipated investment size or the types of medicines, as the project is still under study.
Locally manufactured drugs account for over 70% of Sothema’s total production, including insulin, cancer drugs based on immunotherapy, sera, hormone therapies, and anticoagulant heparin. This local production drove 90% of the company’s growth last year.
Despite the rising prices of raw materials in recent years, Tazi mentioned that the company, listed on the Moroccan stock exchange, has maintained good financial results.
Its investments increased from 100 million dirhams last year to an expected 150 million dirhams this year, aiming to establish modern production lines to increase manufacturing of modern drugs targeting the Middle East and North Africa.
As Morocco expands healthcare coverage, authorities are working to encourage increased production capacity in the pharmaceutical sector to meet growing demands. Manufacturers advocate for incentives and encouragement to boost private investment and make the sector more strategically oriented.
