Riyadh – Mubasher: Saudi Pharmaceutical Industries and Medical Appliances Company’s (SPIMACO) board of directors approved Al Watan Arabia for Pharmaceutical Products' request to add activities of producing veterinary drugs and medical supplies.

Founded in February 2016, Al Watan Arabia for Pharmaceutical Products aims to produce pharmaceuticals and semi-pharmaceutical cosmetics with a capital of SAR 100 million.

Al Watan Arabia for Pharmaceutical Products is a 65% subsidiary of SPIMACO.

SPIMACO approved the board’s recommendation to raise its unit's capital to SAR 150 million, from SAR 100 million to cover the costs of building its industrial complex, according to a statement to the Saudi Stock Exchange (Tadawul) on Thursday.

SPIMACO’s unit complex will include four plants that will be specialised in human drugs, semi-pharmaceutical cosmetics, veterinary drugs, and medical supplies.

SPIMACO’s stake in Al Watan Arabia for Pharmaceutical Products is 65% at a value of SAR 32.5 million.

Saudi Arabia-based Arac Healthcare’s stake in the SPIMACO’s unit reaches15% at a value of SAR 7.5 million, while Arab Co. For Drugs Industries & Medical Appliances’ (ACDIMA) stake stands at 20% at a value of SAR 10 million.

 Al Watan Arabia's capital hike will be implemented through self-finance sources, the statement showed. 

SPIMACO expected that an international company will be selected in the second quarter of 2018 to establish the complex.

In October 2016, SPIMACO signed an agreement with the Saudi Industrial Property Authority (MODON) to lease the land plot for the project.

The project’s land area spanned 95,460 square metres, while the deal lasts for 20 years.