RIYADH: Saudi Pharmaceutical Industries and Medical Appliances Corp., or SPIMACO, has sealed a deal with Swiss-based Vifor Pharma to localize the production of an iron replacement injection, called Ferinject.

The value of the agreement is SR240 million ($64 million) and will be valid for eight years, the homegrown drugmaker said in a bourse statement.

SPIMACO expects to post annual revenue of SR30 million on average from the deal.

The positive financial impact is expected to roll out on the company’s financial statements starting from 2023, according to the statement.

The agreement is in line with the company’s expansion and diversification efforts in order to improve the healthcare industry in the Kingdom.

It also complements Saudi Vision 2030 and the National Transformation Program by localizing knowledge-based industries.