São Paulo – Brazilian oncology chain Oncoclínicas signed a joint venture with Saudi company Advanced Drug Company for Pharmaceutical, whole owned subsidiary of Al Faisaliah conglomerate, to develop an outpatient facility for chemotherapy, radiotherapy, and diagnostic in the city of Riyadh, Saudi Arabia.
Oncoclínicas announced on Tuesday (6) that the joint venture will be jointly owned by both companies, at the proportion of 51% for Oncoclínicas and 49% for Al Fasaliah. The expected investment by Oncoclínicas for this facility is between USD 10-20 million, from construction to maturation. The investment will be incurred over the next 3 years.
Oncoclínicas estimates a potential revenue, at year 5 of the joint venture, of approximately USD 550 million, and EBITDA of approximately USD 150 million, considering the additional units to be implemented over time and financed with cash flow generation from the Saudi operation itself.
The oncology addressable market in Saudi Arabia is estimated at approximately USD 3 billion in 2024, according to an analysis based on World Health Organization and the Saudi Census data. Al Faisaliah is one of the largest conglomerates in Saudi Arabia, with operations in various sectors, including health, pharma, food, among others.
Brazil’s Oncoclínicas
Founded in 2010 in Belo Horizonte, Brazil, by clinical oncologist Bruno Ferrari, Oncoclínicas describes itself as a pioneer in oncological services management in Brazil and one of the largest and most respected groups in oncology, hematology, radiotherapy, and genomics in Latin America. Oncoclínicas currently has 145 units distributed across 39 cities throughout Brazil.
Read more:
Brazil’s Health Cultural Center seeks Arab support
Translated by Guilherme Miranda
