Avalon Pharma signs EUR 3M contract to market GLP1 products

Middle East Pharmaceutical Industries Co. (Avalon Pharma) signed a contract worth EUR 3 million with Adalvo Limited, a global pharmaceutical company headquartered in Malta, to secure the rights for the registration and marketing their GLP 1 products for weight loss and obesity.

In a statement to Tadawul, the company said that the contract is valid for seven years, adding that the agreement allows Avalon Pharma to register, market and distribute the product under its Trademark in select countries of Middle East and North Africa, with exclusive rights for Saudi Arabia.

The agreement is forecast to generate SAR 294 million over the duration of the contract, once regulatory approvals are received, and sales commence.

Prior to going to market, the company will ensure receiving full approvals from the Saudi Arabian Food and Drug Authority (SFDA) as well as the respective authorities in each country in which it will market and distribute the product, the statement added.

The deal includes provisions for expanding to other GLP products and potential for localized manufacturing.

Avalon Pharma also expected that the performance will reflect positively in a gradual manner as sales accelerate post-launch, noting that no related parties are included in the deal.

Any material developments, including expected launch date, related to this agreement will be communicated in due course, the statement indicated.