Saudi Arabia’s PIF sets up Lifera to boost biopharma industry growth

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Saudi Arabia’s Public Investment Fund (PIF) has launched the Pharmaceutical Investment Company (Lifera) to boost biopharmaceutical industry growth, strengthen national resilience and advance the kingdom’s position as a global pharma manufacturing hub.

PIF said Lifera will focus on manufacturing life-saving and essential pharmaceutical products including insulins, vaccines, plasma therapeutics and innovative small molecules. The company will also create partnerships with local and international companies as well as attract targeted investments to grow local capacity and drive the development of domestic manufacturing in the biopharma sector.

Lifera aims to drive formulation development, medicine development and manufacturing, as well as testing services for sterile pharmaceutical products. These high-value services play a key role in helping improve access to, and the security of, therapies that address the pressing healthcare needs of the Saudi and global population.

PIF, which manages about $620bn in assets and aims to grow that to over $1tn by 2025, intends to make targeted investments and create partnerships that strengthen Saudi Arabia’s supply chains, enhance access to pharmaceutical products, and accelerate skills and resource development.

#PIF announced today the establishment of the Pharmaceutical Investment Company (Lifera), a commercial-scale contract development and manufacturing organization, to enable the growth of the local biopharmaceutical industry.

Read more: https://t.co/899K0SFWeC pic.twitter.com/Mp2ZzhUnSG

— Public Investment Fund (@PIF_en) June 18, 2023

The fund plans to leverage strategic investments to be a vital enabler acting as a catalyst to innovate and enhance the healthcare ecosystem in the kingdom while creating significant opportunities for the domestic private sector.

PIF invest in Nupco

PIF said it has invested in the National Unified Procurement Company (Nupco), one of the biggest providers of medical procurement, storage and distribution services for medicines to the Saudi healthcare sector. The investment is aimed at boosting the local supply chain of medicines.

The global healthcare market is expected to develop rapidly over the next decade with innovation in medicines and therapies, advances in precision medicine, genomics and the wide range of treatment modalities available.

PIF’s growing portfolio

Meanwhile, PIF has established 79 companies across 13 strategic sectors since 2017 and the fund has generated more than half a million direct and indirect jobs.

Earlier in June, PIF said it plans to acquire a 30 per cent stake in Tamimi Markets Company (Tamimi Markets), one of the country’s biggest grocery chains with more than 100 stores and five distribution centres. The wealth fund said the deal aligns with its strategy to enable the private sector and create Saudi national champions.

The wealth fund also launched a new company, Badael, to develop, manufacture and distribute tobacco-free and less harmful products to reduce the prevalence of smoking and localise manufacturing in Saudi Arabia.

PIF unveiled a strategy in January 2021 to more than double its assets to more than SAR4tn by 2025. The Saudi government has expanded the role of PIF, founded in 1971, to finance development projects in the country.

The sovereign wealth fund owns stakes in tech companies including ride-hailing firm Uber Technologies, soccer teams including English Premier League’s Newcastle United, electric carmakers Lucid and Ceer and is funding a host of new cities in the desert such as the $500bn futuristic NEOM City and the Red Sea Development Company’s mega tourism project.

Read: Saudi wealth fund PIF to acquire 30% stake in Tamimi Markets