Strategic Partnership Opportunity: Bochéry & Dallah Healthcare

[Virtual Presenter] Our presentation today focuses on the strategic partnership opportunity between Bochéry and Dallah Healthcare, highlighting how our innovative healthcare solutions can benefit the Kingdom of Saudi Arabia market. We will now delve into the specifics..

Index.

[Audio] The objective is clear: we aim to form a strategic partnership between Bochéry and Dallah Healthcare to bring innovative healthcare solutions to the Kingdom of Saudi Arabia. By combining our strengths, we can leverage Dallah's extensive market reach and Bochéry's cutting-edge products to address the pressing needs in diabetic foot ulcer care and diabetes monitoring. Our ultimate goal is to establish a successful partnership with Dallah Healthcare, delivering high-quality diabetic care solutions to the KSA market, while utilizing their local expertise and our advanced healthcare products..

[Audio] The population of Saudi Arabia has been consistently growing over the years, driven by various factors. As of 2024, it stands at approximately 34 million people. Improved healthcare services, a younger demographic structure, and the influx of expatriate workers due to expanding economic opportunities under Saudi Vision 2030 have all contributed to this growth..

[Audio] The estimated healthcare costs for diabetic foot in Saudi Arabia are staggering. The annual treatment cost per patient ranges between SAR 40000 and SAR 80000. This translates into significant financial burdens for both individuals and the healthcare system as a whole. For approximately 918000 patients, the total annual cost would be around SAR 55 billion. For 1,530000 patients, this figure increases to SAR 91.8 billion. And for an average of 1,244000 patients, the estimated annual cost is around SAR 73.4 billion. These numbers highlight the need for effective solutions to manage and treat diabetic foot ulcers, reducing the economic burden on patients and the healthcare system..

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

[Audio] Prevention is crucial in managing diabetic foot ulcers. Educating the public and at-risk individuals about proper foot care enables prevention of the onset of these debilitating conditions. Regular checks on feet, especially for those with diabetes, help identify any potential issues early on. Improved foot care for diabetic patients ensures better management and monitoring of their condition, reducing the risk of complications. Early detection and management of mild cases prevent the escalation of the disease, allowing prompt and effective intervention..

[Audio] In Saudi Arabia, numerous medical centers and hospitals provide 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 have specialized units or departments dedicated to diabetic foot care, particularly in major institutions. 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] In Saudi Arabia, diabetic foot ulcers pose a significant risk to patients, leading to amputations. The analysis reveals that the prevalence of DFU will continue to rise, with an estimated 6.5 million individuals with diabetes by 2024. This trend is expected to worsen, with a projected 20% increase in amputations by 2029 due to population growth and aging..

[Audio] The risks associated with diabetic foot ulcers are alarming. One in five individuals with diabetes will develop a DFU during their lifetime. The main risk factors include neuropathy, poor glycemic control, peripheral arterial disease, and a history of previous foot ulcers. These conditions can have devastating consequences, leading to increased mortality rates. In fact, patients with DFUs have a mortality rate of nearly 19%, which is almost double that of those without DFUs. Furthermore, 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, which is expected to rise further to 8 million by 2029. The rate of diabetic foot ulcers is increasing proportionally, leading to a projected 20% rise in amputations over the next five years due to population growth and aging..

[Audio] According to data from reputable sources such as the Saudi Health Council, World Health Organization, and International Journal of Diabetes Research, diabetes is a significant public health concern in the Kingdom of Saudi Arabia. The prevalence of diabetes in the country has been steadily increasing over the years, with a significant proportion of patients suffering from diabetic foot ulcers. This underscores the need for effective wound care solutions and glucose monitoring devices to manage this condition..

[Audio] The pharmaceutical market in Saudi Arabia is valued at over 40 billion SAR, with a growth rate of around 5% per annum. This presents a lucrative opportunity for us to expand our presence in the region. The Kingdom has been actively promoting its pharmaceutical sector, offering incentives such as tax breaks and reduced regulatory fees to attract foreign investment. This creates a favorable business environment for us to establish a strong foothold in the market. Over 7 million people in the country are affected by diabetes, making it one of the most prevalent chronic diseases in the region. Our analysis indicates that there is a growing demand for diabetes-related treatments in the KSA market. We believe that we can make a meaningful impact in the lives of patients in Saudi Arabia by partnering with local healthcare providers and establishing a strong presence in the market..

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

[Audio] Jamjoom Pharma, Avalon Pharma, Tabuk Pharmaceuticals, and Saudi Pharmaceutical Industries, also known as SPIMACO, are the companies involved in this strategic partnership opportunity. They have expertise in various treatments, including wound care and pharmaceutical products..

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

[Audio] In the Kingdom of Saudi Arabia, we have identified a significant market opportunity in the field of diabetes care. With over 7 million people affected by diabetes, the prevalence is expected to rise, driving demand for innovative solutions and technologies. Our analysis reveals three key market segments with immense potential. Firstly, LYTONIC Plus & Gel for diabetic foot ulcer treatment holds a market size of 450 million SAR, with an annual growth rate of 10%. This indicates a growing need for effective treatments and therapies. Secondly, Wound Care Plaster for diabetic foot ulcers presents a market size of 200 million SAR, with increasing demand for non-invasive solutions. This highlights the importance of developing user-friendly and convenient wound care products. Lastly, Gluco-Sensor 24h CGMS, a real-time glucose monitoring technology, boasts a market size of 500 million SAR, with significant expansion driven by the rising demand for diabetes management tools. These figures demonstrate the vast opportunities available in the KSA market for innovative healthcare solutions..

[Audio] The initial investment required for each product line includes regulatory approvals and marketing efforts. To bring these innovative products to the KSA market, we need to invest a significant amount of money upfront. The breakdown is as follows: LYTONIC requires an initial investment of one point five million dollars, which translates to five point six million Saudi riyals. Wound Care Plaster needs an initial investment of one million dollars, equivalent to three point seven five million Saudi riyals. Meanwhile, Gluco-Sensor 24h demands an initial investment of two million dollars, which amounts to seven point five million Saudi riyals. These investments will pave the way for successful partnerships and ultimately benefit both parties involved..

[Audio] The initial investment required for each product is substantial, with LYTONIC Plus and Gel requiring 5.6 million Saudi Riyals, Wound Care Plaster needing 3.75 million, Gluco-Sensor 24h CGMS requiring 7.5 million, and G.T. requiring 16.85 million. These figures represent the minimum investment needed to establish a partnership and bring these innovative healthcare solutions to the KSA market..

[Audio] Our financial projections show that LYTONIC Plus and Gel will generate SAR 20 million annually, with a net profit margin of 25%. The Wound Care Plaster is forecasted to bring in SAR 11 million in annual revenue, with a net profit margin of 20%. Additionally, the Gluco-Sensor 24h is anticipated to produce SAR 26 million in annual revenue, with a net profit margin of 30%. These figures illustrate the potential for growth and profitability across our product portfolio..

[Audio] The analysis shows that each product has its own distinct payback period. The LYTONIC Plus and Gel need roughly three years to become profitable, whereas the Wound Care Plaster requires approximately three and a half years. In contrast, the Gluco-Sensor 24h is predicted to generate profits within two and a half years. This data will enable us to comprehend the financial consequences of investing in these products and make informed choices regarding their development and marketing strategies..

[Audio] The financial overview of this strategic partnership reveals a promising outlook. With a total projected revenue of seventy-five million dollars over five years, we can expect significant returns on our investment. Moreover, the net profit margin stands at a respectable twenty-five percent, indicating a strong potential for growth. Perhaps most impressively, the cumulative payback period for all products is estimated to be approximately three years, demonstrating a swift return on investment. This financial performance underscores the viability of our partnership and sets the stage for a successful launch in the KSA market..

[Audio] The financial projections for each product indicate a promising outlook. The expected revenue for LYTONIC Gel and Capsule is twenty million SAR per year, with a net profit margin of twenty-five percent and a payback period of three years. Similarly, the wound care plaster is expected to generate eleven million SAR per year, with a net profit margin of twenty percent and a payback period of three and a half years. The gluco-sensor 24-hour CGMS is expected to generate twenty-six million SAR per year, with a net profit margin of thirty percent and a payback period of two and a half years. Finally, the G.T. product is expected to generate fifty-seven million SAR per year, with a net profit margin of twenty-five percent and a payback period of three years. These figures demonstrate the potential for significant returns on investment across all four products..

[Audio] The partnership between our companies will bring significant benefits to both parties as we work together to launch our innovative products in the KSA market, providing high-quality wound care solutions to patients. Our joint efforts will also drive growth and profitability for both organizations. To achieve this goal, we need to finalize the partnership terms and ensure regulatory compliance by filing necessary documents with local authorities and conducting market-specific product trials. Once approved, we will deploy joint marketing campaigns to raise awareness about our products among healthcare professionals and patients. Furthermore, we will set up distribution channels through Dallah's established healthcare network, ensuring seamless delivery of our products to customers..

[Audio] We aim to serve 50% of the estimated 100000 DFU patients in the Kingdom of Saudi Arabia. This 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 these patients with the necessary treatment and care to prevent limb amputations, which currently occur at a rate of 100000 annually. By achieving this target, we hope to make a significant impact on the lives of those affected by diabetes..

[Audio] Our calculation shows that the cost component per DFU patient totals SAR 184,800. This estimate is based on the consumption patterns of LYTONIC Plus, LYTONIC Gel, and wound care products by these patients over a year, assuming a daily dosage of twice daily for each product. According to this calculation, the total cost forecast for serving 1% of the total DFU patients in KSA, which is approximately 10000 patients, amounts to SAR 1,848000000. With an estimated profit margin of 20%, we can anticipate a net profit of SAR 369,600000..

[Audio] In conclusion, we have outlined the key elements of our strategic alliance with Bochéry & Dallah Healthcare. This partnership will play a crucial role in shaping the future of diabetic care in Saudi Arabia. By combining our expertise and resources, we can provide innovative solutions to patients suffering from diabetic foot ulcers. With LYTONIC Plus, Gel, Wound Care Plaster, and Gluco-Sensor 24h, we aim to reduce the incidence of limb amputations and improve the quality of life for those affected by diabetes. I would like to express my gratitude to everyone who has contributed to this partnership..