SAUDI ARABIA — Oncoclínicas & Co has entered into a joint venture with the Advanced Drug Company for Pharmaceuticals, a subsidiary of Al Faisaliah Group, one of Saudi Arabia’s largest conglomerates to into the Kingdom of Saudi Arabia.
Oncoclínicas & Co, founded by Dr. Bruno Ferrari, is the largest and most respected medical group in Latin America, specializing in oncology, hematology, radiotherapy, and genomics.
Under this agreement, Oncoclínicas will establish a state-of-the-art oncology treatment facility in Saudi Arabia, modeled after its Brazilian operations.
The company plans to invest between US$10 million and US$20 million over the next three years.
The centerpiece of this venture is the development of Saudi Arabia’s first advanced cancer outpatient care center in Riyadh, equipped with cutting-edge medical technologies.
Oncoclínicas will hold a 51% stake in the venture, while Al Faisaliah Group will control the remaining 49%.
The Riyadh center will focus on diagnostic medicine, chemotherapy, and radiotherapy treatments, and it will be led by top oncologists in the Kingdom.
The facility will be guided by evidence-based clinical protocols and tailored to the unique needs of the Saudi Arabian healthcare sector.
This expansion aims to significantly enhance access to advanced cancer care for the Kingdom’s population of 32 million people.
Furthermore, the facility in Riyadh will be the precursor to a larger strategy of creating a network of cancer outpatient clinics across Saudi Arabia, making pioneering treatments more widely available to patients.
A report sponsored by Saudi Arabia in 2019 highlighted significant gaps in cancer treatment services and urged the standardisation of definitions for cancer drug shortages at a national level. The report recommended a nine-point plan to address these issues.
This new joint venture is expected to help address these challenges as Saudi Arabia continues to improve its healthcare infrastructure in line with its national vision for enhanced citizen well-being.
The Al Faisaliah Group, with its extensive experience and local knowledge across industries such as healthcare, life sciences, food and beverage, and electronics, will play a pivotal role in the success of this joint venture.
The collaboration between Oncoclínicas and Al Faisaliah Group is well-timed, given Saudi Arabia’s rapidly growing economy, which reached a GDP of US$1.1 trillion in 2022 and is expanding at an annual rate of 4%.
Additionally, according to estimates by the World Health Organization (WHO) and Saudi Sensus, Saudi Arabia’s oncology market will be worth US$3 billion by 2024.
Oncoclínicas anticipates that the venture could generate approximately US$550 million in revenue and an EBITDA of US$150 million by its fifth year, considering further expansion financed through the Saudi partner’s cash flow.
The venture represents a significant step in the internationalisation of Oncoclínicas’ business model, bringing high-quality oncology care to the EMEA region and reinforcing the company’s commitment to innovation in cancer treatment.
Speaking on the joint venture, Dr. Ferrari expressed his excitement about expanding their premier oncology services to Saudi Arabia and the broader Gulf Cooperation Council (GCC) region.
He emphasized that the innovative service model would provide cancer patients in the region with greater access to top-tier care while offering shareholders and partners strong growth prospects.
Oncoclínicas’ Chief Financial Officer, Cristiano Affonso, added that the decision to expand into Saudi Arabia was made after the absence of specialized oncology services was discovered during a government-sponsored event.
HRH Mohammed K.A. Al Faisal, President of Al Faisaliah Group and future Chairman of the joint venture, also expressed his enthusiasm, stating that their goal is to establish the leading private cancer treatment centre in a region home to over 300 million people.
He stressed that the partnership would offer advanced treatments and expert care, aiming to save lives and set a new standard in cancer care.
Founded 14 years ago by Dr. Ferrari, Oncoclínicas & Co. was inspired by his observations during a program at the M.D. Anderson Cancer Center in Houston, where he realized how much progress Brazil needed in addressing cancer.
Today, Oncoclínicas operates 145 units across 39 cities in Brazil, staffed by 2,700 specialist physicians. The company offers a comprehensive system of outpatient clinics and high-complexity cancer centers, having performed 635,000 treatments last year alone.
It is also the exclusive Latin American partner of the prestigious Dana-Farber Cancer Institute, affiliated with Harvard Medical School.
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