February 18, 2020
Grifols and the Public Investment Fund of Saudi Arabia to boost plasma medicines self-supply in the region
- Grifols and the Public Investment Fund of Saudi Arabia (PIF) have executed a non-binding term sheet to build a network of plasma collection centers and other facilities for the production of plasma medicines, including a plasma fractionation plant and a purification plant, in Saudi Arabia.
- Following definitive agreements being signed, the project would be executed through a joint venture which will be owned jointly by Grifols and PIF.
- This partnership creates a unique opportunity for a collaboration that will allow Grifols to reinforce its presence in the region, as well as strengthen the Saudi Arabian Healthcare System.
Barcelona (Spain), February 18, 2020 – Grifols (MCE:GRF, MCE:GRF.P, NASDAQ:GRFS), a global company with more than 100 years of experience contributing to improving people’s health and well-being and a leader in plasma medicines, transfusion diagnosis and pharmaceutical specialists for hospital use has executed a non-binding term sheet with PIF in order to boost the self-supply of plasma medicines in the region.
Through this planned joint venture, the parties would develop collection centers, production facilities, including a fractionation facility and a purification facility.
Víctor Grífols Deu, Co-CEO of Grifols, commented: “We are very satisfied to form part of the collaboration which will contribute to the development of the Saudi Arabian health system and will allow more people to have access to our treatments”.
The leadership in the production of plasma medicines, the experience and reputation in the construction and management of plasma centers and production facilities, and the solid presence and knowledge of the area, have been highly valued factors for the Public Investment Fund of Saudi Arabia to choose Grifols as a strategic partner.
The agreed term sheet is non-binding and Grifols and PIF envisage working towards executing definitive agreements thereafter.
An unprecedented partnership to contribute to the improvement of the country’s health
The financing needs of the project will be determined by the parties depending on the specific needs of each phase of the project.
Part of the recognized value that Grifols would contribute to the joint venture includes its knowledge and expertise in the industry, as well as the intellectual property it holds. Grifols would provide engineering services and support for the quality assurance of infrastructure and processes according to the strictest quality and safety standards.
Furthermore, until the infrastructures are operational, Grifols will guarantee the supply of plasma-derived products to Saudi Arabia, through supply, manufacturing and distribution agreements to be entered into.
For this transaction, Osborne Clarke España, S.L.P. is acting as legal counsel to Grifols.