CPHI Annual Report: Biopharma Outsourcing And Investment Surge To Redefine The Region’s Pharmaceutical Sector

The eighth CPHI Annual Industry Report, published today, has revealed a transformative 2025 for the pharmaceutical sector, fuelled by an unprecedented resurgence in capital investment, robust and rapid outsourcing, and cutting-edge tech integration. As the inaugural CPHI Middle East – the regional edition of the world’s premier pharma event – gears up to unite the global pharma world from 10-12 December 2024 in Riyadh, the report’s findings position Saudi Arabia at the heart of an industry reshaping itself through innovation.

The comprehensive report, based on insights from more than 280 pharma executives, including representatives from the Middle East, indicates that venture capital and private equity is poised to fuel record growth, with predictions that 2025-2027 could be among the most successful in pharmaceutical history. This burgeoning investment ecosystem will particularly benefit biotech companies, many of which lack the infrastructure for commercial-scale manufacturing. With increased funding and access to outsourced capacity, emerging biotech businesses can accelerate their development timelines, setting the stage for Saudi Arabia to become a major biopharma production hub.

With Saudi Arabia’s healthcare transformation as a cornerstone of Vision 2030, the country is well-placed to harness these industry trends to achieve the growth targets outlined by strategic vision, with the support of the Saudi Ministry of Health. The Kingdom is prioritising investment in cutting-edge healthcare infrastructure and the establishment of business-friendly environments, making it an ideal hub for biopharma partnerships and outsourced manufacturing.

Mundhir Al-Hakim, Show Director of CPHI Middle East, said: “CPHI Annual Report’s timing aligns perfectly with Saudi Arabia’s ambitions to establish itself as a leader in life sciences and pharma innovation. The anticipated growth in outsourcing, combined with advances in biologics and cell therapies, will be explored in-depth at CPHI Middle East, placing the event as a dynamic platform for sector-defining partnerships and regional pharma advancements.”

“The resurgence of venture funding and private equity will certainly go a long way in empowering biotech firms, as well as attract global pharmaceutical giants to set-up local innovation hubs,” added Al-Hakim.

The report reveals that most biopharma companies are increasingly dependent on Contract Manufacturing Organizations (CMOs) for production, a shift that Saudi Arabia’s strategic location and expanding infrastructure are well-positioned to leverage.

Moreover, a notable trend in AI adoption and automation to improve efficiency is also highlighted in the report. Coupled with advancements like organ-on-a-chip technology, innovations promise more streamlined and faster drug development processes. Meanwhile, an identified shift towards harmonising data processes is expected to expedite drug development over the next five years.

Al-Hakim added, “Saudi Arabia’s commitment to digital health and data harmonisation strengthens its position to expedite regulatory and development processes, meeting global standards for efficiency and speed.”

Organised by Tahaluf, CPHI Middle East will be a critical forum for discussing the industry shifts highlighted in the report, with the conferences exploring the potential of biologics, and the rise of advanced therapies, alongside the establishment of strategic business partnerships and government initiatives, laying the groundwork for Saudi Arabia’s future as a biotech and pharma innovation hub.

“CPHI Middle East will not only showcase Saudi Arabia’s readiness to support global pharmaceutical leaders, but will also be a springboard for groundbreaking collaborations and technological advancements,” said Al-Hakim. “Together, we are set to drive a new era of pharma and healthcare innovation.”