Strategic Partnership Opportunity: Bochéry & Dallah Healthcare

[Virtual Presenter] Bochéry and Dallah Healthcare are pleased to present this strategic partnership opportunity. We are eager to discuss how our cutting-edge healthcare solutions can positively impact the Kingdom of Saudi Arabia market. Let us now delve into the specifics..

[Audio] The population of Saudi Arabia is approximately 34 million people, with a growing demand for healthcare services. This demographic trend presents a significant opportunity for pharmaceutical companies like ours to expand their presence in the region. With a large and young population, there is a pressing need for innovative solutions to address the rising incidence of chronic diseases such as diabetes..

[Audio] The objective of this partnership is clear: to form a strategic alliance between Bochéry and Dallah Healthcare to bring innovative healthcare solutions to the Kingdom of Saudi Arabia. By combining our strengths, we aim to address the unmet needs in diabetic foot ulcer care and diabetes monitoring. Our ultimate goal is to establish a successful partnership that delivers cutting-edge diabetic care solutions to the KSA market, leveraging Dallah's local expertise and Bochéry's advanced healthcare products.

[Audio] The population of Saudi Arabia has consistently grown over the years, reaching approximately 34 million people as of 2024. Advancements in healthcare, a younger demographic structure, and the influx of foreign workers drawn by the country's expanding economic opportunities under Saudi Vision 2030 contributed to this growth..

[Audio] Saudi Arabia has a large population of approximately 34 million people, with over 18% of them suffering from diabetes. This translates to around 6.12 million individuals living with diabetes. Furthermore, it's estimated that between 15% to 25% of these diabetic patients develop diabetic foot ulcers, resulting in a minimum of 918000 to a maximum of 1,530000 individuals affected. On average, this would mean that around 1.22 million people suffer from diabetic foot ulcers..

[Audio] In Saudi Arabia, it's estimated that approximately 6.5 million individuals will have diabetes by 2024. This staggering figure is expected to rise to 8 million by 2029, driven by population growth and aging. Unfortunately, this surge in diabetes cases comes with a significant risk of Diabetic Foot Ulcers (DFU), which can lead to amputations. In fact, it's predicted that there will be a 20% increase in amputations over the next five years. This alarming trend highlights the urgent need for effective solutions to prevent and treat DFU..

[Audio] The risks associated with diabetic foot ulcers are quite alarming. Between 15 and 25 percent of individuals with diabetes will develop these ulcers during their lifetime, highlighting the importance of prevention and early detection. The main risk factors include neuropathy, poor glycemic control, peripheral arterial disease, and a history of previous foot ulcers, which can significantly increase the likelihood of developing a DFU. The mortality rate for patients with DFUs is approximately 18.5%, nearly double that of patients without DFUs, and amputations can lead to even higher mortality rates, reaching as high as 32.2%..

[Audio] In Saudi Arabia, it is estimated that between five percent to fifteen percent of diabetic patients with diabetic foot ulcers may require amputations. This translates to over three thousand diabetic-related amputations occurring annually. Furthermore, the data shows that men are disproportionately affected, with amputation and mortality rates significantly higher among males, ranging from seventy-six percent to seventy-eight percent..

[Audio] Approximately 6.5 million individuals will have diabetes in Saudi Arabia by 2024, according to the data. This number is expected to rise to 8 million by 2029. Moreover, the rate of diabetic foot ulcers is increasing proportionally. Additionally, the forecast estimates a 20% increase in amputations due to population growth and aging..

[Audio] The risks associated with diabetic foot are numerous and can have significant consequences on a person's quality of life. Ulcers and wounds can develop due to poor circulation and increased infection risk, leading to delayed healing. This can also increase the risk of bacterial infections, which can spread quickly and affect bones and tissues. In advanced cases, amputation may be necessary to prevent the spread of infection. Moreover, the psychological and social impact of losing a limb can be devastating, affecting one's ability to maintain independence and participate in daily activities. Furthermore, the high costs associated with treating diabetic foot can place a significant burden on healthcare systems..

[Audio] The estimated healthcare costs for diabetic foot in Saudi Arabia are substantial. The annual treatment cost per patient ranges between SAR 40000 and SAR 80000. This translates into significant expenses when considering the total annual cost for all patients. For 918000 patients, the estimated cost would be approximately SAR 55 billion. Alternatively, with 1,530000 patients, the estimated cost would be around SAR 91.8 billion. On average, with 1,244000 patients, the estimated cost would be approximately SAR 73.4 billion..

[Audio] The high costs associated with diabetic foot ulcer treatment can be attributed to several factors. Specialized medical teams are required to treat these complex conditions, which increases the overall cost. Advanced surgeries, including amputations, may be necessary in severe cases, contributing to the high expenses. Medical equipment such as prosthetics and physiotherapy tools are often needed, adding to the overall cost. Extended hospital stays are common due to the severity of the conditions, resulting in higher healthcare expenditures. Chronic complications like systemic infections can arise, leading to increased healthcare costs..

[Audio] Prevention is crucial in addressing the challenges posed by diabetic foot ulcers. Educating the public and at-risk individuals about the importance of proper foot care can prevent the onset of these debilitating conditions. Better management and monitoring of diabetic patients can help identify potential issues early on, thereby preventing the escalation of the disease. Detecting and managing mild cases promptly can also prevent the progression of the condition. Prioritizing prevention can reduce the burden of diabetic foot ulcers on individuals, families, and society as a whole..

[Audio] In Saudi Arabia, there are numerous medical centers and hospitals providing diabetic foot care services. Over 500 government and private hospitals offer specialized services for diabetic foot patients. More than 50 specialized diabetes centers focus on treating and managing diabetes and diabetic foot, managed by the Ministry of Health or the private sector. Many hospitals also have specialized units or departments dedicated to diabetic foot care. Hundreds of outpatient clinics provide diabetic foot care services, including primary healthcare centers under the Ministry of Health. Notable facilities in this field include King Faisal Specialist Hospital & Research Center, National Guard Health Affairs Hospitals, Dallah Hospital Group, Dr. Sulaiman Al Habib Hospitals, and Diabetes Centers affiliated with the Ministry of Health across various regions..

[Audio] The pharmaceutical market in Saudi Arabia has shown remarkable growth over the years, driven primarily by the country's large population and increasing awareness about health issues. The current market value stands at approximately 45 billion Saudi Riyals, with a projected annual growth rate of 8%. This presents a significant opportunity for companies looking to expand their presence in the region. In particular, the market for diabetes-related treatments has seen substantial growth, driven by the rising prevalence of diabetes among the local population. With over 6.12 million people affected by diabetes, Saudi Arabia ranks among the top countries globally in terms of diabetes prevalence. This trend is expected to continue, with the World Health Organization predicting a further increase in the number of diabetes cases in the coming years. As a result, there is a growing demand for innovative and effective treatments for diabetes, including devices such as continuous glucose monitors and wound care products. Companies that can provide these solutions will be well-positioned to capitalize on this growing market..

[Audio] The pharmaceutical industry in Saudi Arabia has experienced significant growth over the past few years, with a current market value of SAR 44 billion, equivalent to USD 11.72 billion in 2022. This impressive figure is expected to continue growing, reaching SAR 56.6 billion, or approximately USD 15.09 billion, by 2027. With a compound annual growth rate of 5.2%, this market presents a promising opportunity for companies looking to expand their presence in the region..

[Audio] The companies involved in this strategic partnership opportunity are Jamjoom Pharma, Avalon Pharma, Tabuk Pharmaceuticals, and SPIMACO, which are prominent pharmaceutical organizations with a strong presence in the Kingdom of Saudi Arabia, focusing on providing high-quality treatments to patients..

[Audio] In the KSA market, notable competitors across various categories can be found. Key players in the area of DFU care include Johnson & Johnson, Smith & Nephew, and Mölnlycke Health Care, which offer products such as wound dressings and negative pressure wound therapy devices. Prominent competitors in the category of continuous glucose monitoring systems are Abbott with their Freestyle Libre product, Medtronic with their Guardian system, and Dexcom. Additionally, in the field of wound care plasters, major players like 3M Healthcare and Smith & Nephew, along with regional distributors offering similar products, can be seen..

[Audio] The market opportunity in KSA is substantial, with over six point one two million people affected by diabetes, and the prevalence expected to rise. This presents a growing demand for DFU solutions and real-time glucose monitoring technology. Our analysis reveals three key market segments for each product. Firstly, LYTONIC Plus & Gel for DFU is projected to generate four hundred and fifty million Saudi Riyals annually, with a ten percent expected growth rate. Secondly, Wound Care Plaster for DFU is anticipated to reach two hundred million Saudi Riyals, driven by increasing demand for non-invasive solutions. Lastly, Gluco-Sensor 24h CGMS Continuous Glucose Monitoring System is expected to expand significantly, reaching five hundred million Saudi Riyals, due to the heightened demand for diabetes management technology..

[Audio] The initial investment required for each product line includes regulatory approvals and marketing efforts. This investment enables us to establish a strong presence in the KSA market. The amounts needed are $1.5 million for LYTONIC, $1 million for Wound Care Plaster, and $2 million for Gluco-Sensor 24h..

[Audio] The initial investment required for this strategic partnership opportunity is substantial, but it will yield significant returns. The initial investment needed for each product varies greatly, ranging from 3.75 million SAR for Wound Care Plaster to 7.5 million SAR for Gluco-Sensor 24h CGMS. These figures demonstrate the varying levels of investment required for each product. With an initial investment of 5.6 million SAR for LYTONIC Gel & Cap., we can expect a strong return on investment. Similarly, the investment of 7.5 million SAR for Gluco-Sensor 24h CGMS will also generate substantial profits. As we move forward with setting up this partnership, it is essential to carefully consider these initial investment requirements and plan accordingly..

[Audio] Our financial projections show that each product will generate considerable revenue over the next five years. LYTONIC Plus and Gel are expected to yield SAR 20 million annually, with a net profit margin of 25 percent. The Wound Care Plaster is forecasted to generate SAR 11 million in annual revenue, with a net profit margin of 20 percent. Meanwhile, the Gluco-Sensor 24h is anticipated to produce SAR 26 million in annual revenue, with a net profit margin of 30 percent. These figures illustrate the potential for substantial returns on investment across our product portfolio..

[Audio] The analysis reveals that each product has a unique payback period. The LYTONIC Plus and Gel require approximately three years to recoup their initial investment. Meanwhile, the Wound Care Plaster needs around three and a half years to break even. On the other hand, the Gluco-Sensor 24h boasts a relatively shorter payback period of two and a half years. This information will be crucial in determining the most effective allocation of resources and identifying opportunities for growth within the Saudi Arabian market..

[Audio] The financial overview of this strategic partnership reveals a promising future. With a total projected revenue of seventy-five million dollars over five years, we can expect significant returns on our investment. Moreover, with a net profit margin of twenty-five percent, we will not only break even but also generate substantial profits. The cumulative payback period for all products is approximately three years, indicating a quick return on investment. This financial performance underscores the potential of our partnership to drive growth and profitability in the KSA market..

[Audio] The financial projections show that each product will generate substantial revenue over the next five years. LYTONIC Gel and Capsule, Wound Care Plaster, and Gluco-Sensor 24h CGMS are expected to bring in millions of Saudi Riyals annually. The net profit margins range between 20% and 30%, indicating a strong potential for returns on investment. Moreover, the payback periods for each product range from approximately two to three years, suggesting a relatively quick return on investment. These figures imply that the strategic partnership has the potential to yield considerable financial gains..

[Audio] The partnership between Bochéry and Dallah Healthcare provides substantial advantages for both parties, encompassing expanded market presence, better patient outcomes, and elevated brand recognition. To introduce our products in the KSA market, we must ratify the partnership terms, submit regulatory documents, conduct product trials tailored to the local market, execute joint marketing initiatives, and set up distribution networks via Dallah's vast healthcare network. Through collaborative efforts, we can deliver cutting-edge solutions to patients and healthcare professionals, ultimately enhancing the standard of care in the region..

[Audio] We aim to serve 50% of the estimated 100000 DFU patients in the Kingdom of Saudi Arabia, which translates to 50000 patients who will benefit from our LYTONIC Plus and Gel, Wound Care Plaster, and Gluco-Sensor 24h products. With an expected annual population of 4000000 people suffering from diabetes, we anticipate serving approximately 11000 patients daily. Our goal is to provide timely and effective treatment options to these patients, thereby reducing the risk of limb amputation. By achieving this target, we hope to make a significant impact on the lives of those affected by diabetes..

[Audio] To determine our target to serve diabetic foot ulcer patients, we need to calculate the cost component per patient. Based on our analysis, we can see that the cost forecast for one patient is approximately SAR 184,800. This includes the costs of LYTONIC Plus, LYTONIC Gel, and wound care products. Our target is to serve 1% of the total DFU patients in the Kingdom of Saudi Arabia, which is approximately 10000 patients. The estimated cost for serving this target is SAR 1,848000000. With an estimated profit margin of 20%, we expect to generate SAR 369,600000 in profits..

[Audio] The references provided will serve as valuable resources for staying updated on the latest developments and trends in the field of diabetes research and treatment. The Saudi Health Council's annual reports will give insight into the current state of diabetes in the Kingdom, while the World Health Organization's global data will provide a broader perspective on the disease's impact worldwide. Additionally, the International Journal of Diabetes Research will offer cutting-edge information on new treatments and technologies. By referencing these sources, we can ensure that our partnership remains informed and effective in addressing the needs of patients suffering from diabetic foot ulcers in the KSA market.

[Audio] We have concluded this presentation and would like to express our gratitude to everyone who has attended and engaged with us throughout. We believe that our partnership will lead to significant advancements in the treatment and care of diabetic foot ulcers in Saudi Arabia. With our products LYTONIC Plus, Gel, Wound Care Plaster, and Gluco-Sensor 24h, we are confident that we can positively impact the lives of those affected by diabetes. Thank you for your time, and we look forward to collaborating to shape the future of diabetic care in KSA..