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Zawya
05-05-2025
- Business
- Zawya
Oman's pharmaceutical sector: A new pillar of national resilience
The pharmaceutical sector in Oman is fast becoming a critical component of national development—intersecting the goals of public health security, economic diversification, and industrial resilience. For decades, the country has relied heavily on pharmaceutical imports, with domestic production contributing only a small fraction of the total supply. However, in line with Vision 2040, the Sultanate of Oman is charting a new path—one focused on expanding local manufacturing, fostering investment, and integrating into global supply chains. Historically, the pharmaceutical industry in Oman has been modest in scale. As recently as 2020, only five domestic manufacturers operated in the country, meeting just 8 per cent of the market demand. The remainder—largely generic medicines, medical devices, and injectables—was sourced from abroad, costing the country over $500 million annually. But the situation is gradually shifting. Companies such as National Pharmaceutical Industries (NPI), established in 2001, have expanded their reach to over 50 countries and registered more than 600 products, setting a precedent for others to follow. The Omani government, recognising the strategic significance of the sector, has introduced a robust framework of incentives to support pharmaceutical manufacturing. This includes five-year tax exemptions, customs waivers on raw materials and machinery, and a 10 per cent price preference for local products in public tenders. These measures are designed not only to encourage investment but also to ensure a minimum level of domestic demand for locally produced medicines. Significantly, free zones such as Salalah and Suhar have become attractive sites for pharmaceutical development, offering modern infrastructure, proximity to petrochemical feedstock, and direct access to seaports. In Salalah, Philex Pharmaceuticals launched a major facility in 2023 with a projected investment of $150 million. The plant, spanning over 100,000 square metres, is capable of producing one billion capsules and tablets annually and marks Oman's entry into high-volume pharmaceutical manufacturing. Meanwhile, in Raysut, Dhofar Pharma began operations in late 2024, becoming the country's first facility to locally produce intravenous solutions and dialysis fluids. Built to international standards, the factory is designed to meet local demand and eventually export to regional markets such as the GCC and North Africa. Its capacity—15 million IV bags and over 2 million dialysis units per year—reflects both the scale of ambition and the urgent need for import substitution. Elsewhere, in Suhar Free Zone, Penicillin General Integrated is developing a factory to produce antibiotic raw materials like Penicillin-G and 6-APA. If successful, the plant could meet up to 10 per cent of global demand for these substances, positioning Oman as a strategic player in the global antimicrobial supply chain. In early 2025, the Ministry of Health also signed advance purchase agreements with six emerging Omani pharmaceutical firms to supply a range of products, including gene therapies, biologics, and surgical consumables. This move provides financial security for the manufacturers while aligning with national objectives for medicine self-sufficiency. Despite these advancements, significant challenges remain. First is the continued dependence on imported raw materials and finished drugs, particularly from India, China, and Europe. This reliance makes Oman vulnerable to global supply chain disruptions—a lesson underscored by the COVID-19 pandemic. Moreover, the country's R&D ecosystem is still in its infancy, limiting its ability to innovate or develop proprietary medicines. Human capital is another pressing issue. The pharmaceutical industry requires highly specialised professionals—pharmacists, chemists, and engineers. While Omanisation is a long-term goal, many positions are currently held by expatriates. Companies like Dhofar Pharma aim to achieve 80 per cent local employment within five years, but doing so will require deeper collaboration between academia and industry. Additionally, the high cost of local manufacturing presents a barrier to competitiveness. International firms benefit from economies of scale that drive down unit costs—something Oman is still working towards. Without ongoing government support and incentives, local manufacturers may struggle to compete on price in both domestic and export markets. Nonetheless, the opportunities are considerable. The GCC region spends billions on pharmaceutical imports each year, and Oman's geographic location, coupled with free trade agreements and world-class ports, gives it a logistical edge. If supply chains can be made more integrated and efficient, Oman could serve as a manufacturing and re-export hub for the wider region. International partnerships will be key to accelerating progress. A recent example is the strengthening of ties with Algeria, which has achieved 75 per cent pharmaceutical self-sufficiency. During a high-level visit in early 2025, Omani and Algerian officials explored opportunities for joint ventures, technology transfer, and mutual market access. Such collaborations offer a strategic shortcut to building local capacity while enhancing product credibility. Oman's pharmaceutical ambitions are not without hurdles, but the foundation is solid. With a supportive policy environment, growing industrial investment, and clear political will, the country is well-positioned to make the sector a cornerstone of its future economy. What is needed now is persistence—investment in people, in research, and in international collaboration. If these elements continue to align, Oman could, within a decade, become a regional leader in pharmaceutical production, contributing not only to economic growth but also to national resilience in the face of global uncertainty. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
03-05-2025
- Business
- Observer
Oman's pharmaceutical sector: A new pillar of national resilience
The pharmaceutical sector in Oman is fast becoming a critical component of national development—intersecting the goals of public health security, economic diversification, and industrial resilience. For decades, the country has relied heavily on pharmaceutical imports, with domestic production contributing only a small fraction of the total supply. However, in line with Vision 2040, the Sultanate of Oman is charting a new path—one focused on expanding local manufacturing, fostering investment, and integrating into global supply chains. Historically, the pharmaceutical industry in Oman has been modest in scale. As recently as 2020, only five domestic manufacturers operated in the country, meeting just 8 per cent of the market demand. The remainder—largely generic medicines, medical devices, and injectables—was sourced from abroad, costing the country over $500 million annually. But the situation is gradually shifting. Companies such as National Pharmaceutical Industries (NPI), established in 2001, have expanded their reach to over 50 countries and registered more than 600 products, setting a precedent for others to follow. The Omani government, recognising the strategic significance of the sector, has introduced a robust framework of incentives to support pharmaceutical manufacturing. This includes five-year tax exemptions, customs waivers on raw materials and machinery, and a 10 per cent price preference for local products in public tenders. These measures are designed not only to encourage investment but also to ensure a minimum level of domestic demand for locally produced medicines. Significantly, free zones such as Salalah and Suhar have become attractive sites for pharmaceutical development, offering modern infrastructure, proximity to petrochemical feedstock, and direct access to seaports. In Salalah, Philex Pharmaceuticals launched a major facility in 2023 with a projected investment of $150 million. The plant, spanning over 100,000 square metres, is capable of producing one billion capsules and tablets annually and marks Oman's entry into high-volume pharmaceutical manufacturing. Meanwhile, in Raysut, Dhofar Pharma began operations in late 2024, becoming the country's first facility to locally produce intravenous solutions and dialysis fluids. Built to international standards, the factory is designed to meet local demand and eventually export to regional markets such as the GCC and North Africa. Its capacity—15 million IV bags and over 2 million dialysis units per year—reflects both the scale of ambition and the urgent need for import substitution. Elsewhere, in Suhar Free Zone, Penicillin General Integrated is developing a factory to produce antibiotic raw materials like Penicillin-G and 6-APA. If successful, the plant could meet up to 10 per cent of global demand for these substances, positioning Oman as a strategic player in the global antimicrobial supply chain. In early 2025, the Ministry of Health also signed advance purchase agreements with six emerging Omani pharmaceutical firms to supply a range of products, including gene therapies, biologics, and surgical consumables. This move provides financial security for the manufacturers while aligning with national objectives for medicine self-sufficiency. Despite these advancements, significant challenges remain. First is the continued dependence on imported raw materials and finished drugs, particularly from India, China, and Europe. This reliance makes Oman vulnerable to global supply chain disruptions—a lesson underscored by the COVID-19 pandemic. Moreover, the country's R&D ecosystem is still in its infancy, limiting its ability to innovate or develop proprietary medicines. Human capital is another pressing issue. The pharmaceutical industry requires highly specialised professionals—pharmacists, chemists, and engineers. While Omanisation is a long-term goal, many positions are currently held by expatriates. Companies like Dhofar Pharma aim to achieve 80 per cent local employment within five years, but doing so will require deeper collaboration between academia and industry. Additionally, the high cost of local manufacturing presents a barrier to competitiveness. International firms benefit from economies of scale that drive down unit costs—something Oman is still working towards. Without ongoing government support and incentives, local manufacturers may struggle to compete on price in both domestic and export markets. Nonetheless, the opportunities are considerable. The GCC region spends billions on pharmaceutical imports each year, and Oman's geographic location, coupled with free trade agreements and world-class ports, gives it a logistical edge. If supply chains can be made more integrated and efficient, Oman could serve as a manufacturing and re-export hub for the wider region. International partnerships will be key to accelerating progress. A recent example is the strengthening of ties with Algeria, which has achieved 75 per cent pharmaceutical self-sufficiency. During a high-level visit in early 2025, Omani and Algerian officials explored opportunities for joint ventures, technology transfer, and mutual market access. Such collaborations offer a strategic shortcut to building local capacity while enhancing product credibility. Oman's pharmaceutical ambitions are not without hurdles, but the foundation is solid. With a supportive policy environment, growing industrial investment, and clear political will, the country is well-positioned to make the sector a cornerstone of its future economy. What is needed now is persistence—investment in people, in research, and in international collaboration. If these elements continue to align, Oman could, within a decade, become a regional leader in pharmaceutical production, contributing not only to economic growth but also to national resilience in the face of global uncertainty. Qasim Al Maashani The writer is the head of business and politics section at Oman Observer
Business Standard
29-04-2025
- Business
- Business Standard
Aurobindo Pharma drops after fire incident at Kakinada facility
Aurobindo Pharma declined 2.97% to Rs 1,209.70 after the company disclosed a fire incident at the manufacturing facility of its subsidiary, Lyfius Pharma, located in Andhra Pradesh. The incident, which occurred on 27 April 2025, has prompted a temporary suspension of operations at the plant facility located in Kakinada SEZ. In a regulatory filing, Aurobindo stated that the fire broke out around 10:00 PM in the coal crusher area of its Penicillin-G production unit. Preliminary findings suggest the blaze was caused by the self-ignition of coal. While certain ancillary equipment was damaged, the core manufacturing infrastructure remained unaffected. Notably, no injuries were reported. The company noted that a detailed damage assessment is underway and assured stakeholders that the facility is fully insured. As a safety measure, operations at the unit have been paused for 20 to 25 days to facilitate equipment replacement. "We remain committed to resuming full operations at the earliest while maintaining the highest safety and quality standards," the company said in a statement. Aurobindo Pharma is an integrated global pharmaceutical company headquartered in Hyderabad, India. The Company develops, manufactures, and commercializes a wide range of generic pharmaceuticals, branded specialty pharmaceuticals and active pharmaceutical ingredients globally in over 150 countries. The companys consolidated net profit fell 9.7% to Rs 845.81 crore while net sales increased 8.6% to Rs 7,893.15 crore in Q3 December 2024 over Q3 December 2023.
Mint
29-04-2025
- Business
- Mint
Aurobindo Pharma share price falls over 3% after fire incident at its manufacturing facility in Andhra Pradesh
Aurobindo Pharma share price declined over 3% on Tuesday after the company reported a fire incident at one of its manufacturing facilities in Andhra Pradesh that resulted in certain ancillary equipment. Aurobindo Pharma shares dropped as much as 3.43% to ₹ 1,203.90 apiece on the BSE. Aurobindo Pharma said that on April 27, at approximately 10:00 PM (IST), a fire incident occurred in the vicinity of the coal crusher area at its Penicillin-G manufacturing facility located in Kakinada SEZ, Andhra Pradesh. 'The incident resulted in damage to certain ancillary equipment, with no impact to the core manufacturing infrastructure. Importantly, there were no injuries reported. The incident is not expected to have a material impact on the operations or financials of the group,' Aurobindo Pharma said in a release on April 28. The company added that a thorough assessment of the damage is currently underway, and it assured all stakeholders that the facility was fully insured. 'As a precautionary measure and to facilitate necessary equipment replacements, operations at the plant will be temporarily paused for an estimated period of 20 to 25 days. We remain committed to resuming full operations at the earliest while maintaining the highest safety and quality standards,' Aurobindo Pharma said. Aurobindo Pharma share price has gained 4% in one month, but the stock has dropped nearly 10% on a year-to-date (YTD) basis. In the past one year, Aurobindo Pharma shares gained 5%, while the stock is up by a staggering 92% in three years. At 10:40 AM, Aurobindo Pharma share price was trading 3.12% lower at ₹ 1,207.90 apiece on the BSE, commanding a market capitalisation of more than ₹ 70,085 crore. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 29 Apr 2025, 10:43 AM IST
Business Upturn
29-04-2025
- Business
- Business Upturn
Aurobindo Pharma shares drop 3% after company reports fire incident at Kakinada plant
By Aman Shukla Published on April 29, 2025, 09:47 IST Aurobindo Pharma's stock witnessed a 3% dip following a fire incident at its Penicillin-G manufacturing facility in Kakinada SEZ, Andhra Pradesh. The fire, which occurred near the coal crusher area, caused damage to ancillary equipment but did not impact the core manufacturing infrastructure. Fortunately, no injuries were reported during the incident. The company assured investors that the fire would not have a material impact on its operations or financials. A thorough assessment of the damage is underway, and operations at the plant will be temporarily halted for approximately 20 to 25 days to facilitate necessary repairs and equipment replacements. Aurobindo Pharma emphasized that the facility is fully insured, ensuring that any financial losses from the incident are covered. The company remains focused on resuming full operations while prioritizing safety and quality standards. While the short-term impact includes a temporary shutdown of the plant, Aurobindo Pharma's management is confident that the facility will return to normalcy soon, minimizing long-term disruptions. Aurobindo Pharma's stock opened at ₹1,238.40 today, reaching a high of ₹1,244.10 and a low of ₹1,206.10. The 52-week high for the stock stands at ₹1,592.00, while the 52-week low is ₹1,010.00. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
