Ahmad Shaher Al-Tabbaa
Chairman Avalon Pharma
Honourable Shareholders and Partners,
As we reflect on our performance over 2024, I am proud to report that Avalon Pharma has achieved remarkable progress on multiple fronts. This year marked significant milestones in our journey to becoming a national champion and a regional leader, led by our successful listing on the Saudi Stock Exchange, all while remaining steadfast in our commitment to delivering quality, innovation, and sustainability.
Chairman’s Message
Overview of the Year
2024 was a transformative year for Avalon Pharma. The first major milestone for this was the offering of 30% of our shares on the Saudi Stock exchange in February. Our IPO was truly a historic milestone in the growth of Avalon, reflecting strong market confidence in our strategic direction and growth potential.
This was complemented by some significant achievements, which included the successful launch of several new products, most notably the groundbreaking Copan, the first Saudi FDA-approved cough syrup, which very quickly secured a leading position in the market.
In addition, we registered a record-breaking 39 products with the FDA, spanning medicine, cosmetics, and healthcare, all of which is testament to our relentless drive for innovation and securing our market-leading position.
Operationally, we maintained an impressive utilisation rate of 85% across our facilities, ensuring seamless delivery to meet market demands, even as we navigated capacity challenges. To help ensure the continued growth and development of Avalon, we established our Strategy Management Office (SMO) and accelerated the development of our new ACE strategy roadmap, which focuses on Accelerating growth, Capitalizing on opportunities, and Expanding our reach to further develop the Company going forward whilst underscoring our commitment to structured, sustainable development.
Vision and Strategic Outlook
At the core of Avalon Pharma’s strategy is our alignment with Saudi Arabia’s Vision 2030. We continue to support the Kingdom’s goals by localising production, advancing healthcare innovation, and driving economic growth.
Our vision is to be the foremost health, beauty, and wellness Company across the region, and 2024 brought us closer to this aspiration.
Governance and Sustainability
Avalon Pharma remains deeply committed to ethical governance and sustainable practices. This year, we advanced our environmental goals by securing ISO 14001 certification, transitioning to Saudi electric power for our new facilities, and reducing paper waste through digitalisation efforts.
Our Corporate Social Responsibility initiatives spanned healthcare, environmental conservation, and community support, exemplifying our role as a responsible corporate entity.
Looking Ahead
Looking ahead, Avalon Pharma is focused on geographical expansion, advancing our prescription medicine portfolio, and strengthening our operational infrastructure.
The upcoming construction of a fourth factory dedicated to oncology, ophthalmic and injectables is a cornerstone of this plan, ensuring we meet the growing demands of the market while reinforcing our commitment to excellence.
As we enter 2025, we are filled with optimism and determination to build on this year’s successes. With a clear strategic roadmap, a commitment to innovation, and the unwavering support of our stakeholders, Avalon Pharma is well-positioned to achieve sustained growth and create lasting value for all.
Stakeholder Appreciation
Finally, I must note that these accomplishments would not have been possible without the unwavering support and dedication of our stakeholders. I extend my deepest gratitude to our shareholders, whose confidence and belief in our vision helps to propel us forward.
To our employees, your talent, ambition, and resilience form the backbone of Avalon Pharma and our success story.
And of course, to our customers and partners, we must thank you for your continuous trust and collaboration, all of which inspires us to strive for the best and achieve new heights.
Thank you for your continued trust and partnership.
Ahmad Shaher Al-Tabbaa
Chairman of the Board
Avalon Pharma
Managing Director
& Chief Executive
Officer Message
Operational Excellence and Achievements
This year, Avalon Pharma set new benchmarks in performance. Our successful IPO was a historic milestone, reflecting market confidence in our strategic direction and growth potential.
Operationally, we achieved 16.4% year-on-year growth, launched innovative products like Copan, and registered 39 new products, a record in our history. These accomplishments underline our commitment to innovation and market leadership.
Our ability to maintain an impressive 85% utilization rate across facilities, even amid capacity challenges, demonstrates the resilience and efficiency of our operations. Additionally, our partnerships with major stakeholders have strengthened, supporting our goal of delivering value to our customers and shareholders.
Executing Our Strategy
The development of our ACE framework—Accelerate, Catalyse, Expand—remains central to our operations and sustainable growth. This year, we continued to align with Saudi Arabia’s Vision 2030 by enhancing our local manufacturing capabilities and expanding into new markets across the GCC and MENA regions.
Empowering People and Community
At Avalon, our people are our greatest asset. Through initiatives like the Avalon Academy, we have enhanced training and development, nurturing talent and ensuring our workforce is equipped for all future challenges. Beyond our internal efforts, we remain deeply committed to corporate social responsibility. This year, we launched impactful CSR initiatives addressing healthcare, environmental sustainability, and community development, reinforcing our role as a responsible leading corporate.
A Clear Path Forward
Looking ahead, we are preparing for transformative growth with the upcoming launch of our Strategy Management Office (SMO) in early 2025. This will drive the execution of our strategic roadmap, ensuring focus and alignment across all levels of the organisation.
As we move into 2025, we are focused on innovation, operational excellence, and strategic investments. Key priorities include the construction of our fourth manufacturing facility, specialising in oncology, opthalmic and injectables, and the implementation of a multi-year business plan to guide our long-term growth. These efforts will not only strengthen our position in the market but also ensure we continue to deliver value to all stakeholders.
Gratitude and Commitment
None of this would be possible without the dedication and support of our employees, partners, and shareholders. Your trust inspires us to reach new heights and fulfill our mission to become a national champion and regional leader in health, beauty, and wellness.
Thank you for your continued confidence in Avalon Pharma. Together, we will achieve even greater success in the coming years.
Warm regards,
Mohamed Maher Al Ghannam
Chief Executive Officer
Avalon Pharma
Mohamed Maher Al Ghannam
Chief Executive Officer Avalon Pharma
Dear Shareholders,
2024 has been a year of significant progress and exceptional performance for Avalon Pharma. I am proud to share the highlights of what we have achieved together and how we are building a future aligned with our vision and strategic goals.
2024
Launches an IPO with 6,000,000 shares at SAR 82 per share. Registered 36 new products in 2024, achieving an annual record.
0
Per Share
2023
Avalon Pharma announces its intention to offer 30% of its capital through an IPO and list its shares on the main Saudi Stock Exchange (TASI).
2022
Company undergoes significant transformation, converting from Limited Liability Company (LTD) to a Joint Stock Company (JSC).
2021
Avalon introduces “Avalon 4,” a new certralized warehouse to enhanced logistics and distribution capabilities.
2015
Avalon inaugurates its R&D facility, “Avalon 2,” and launches its second manufacturing facility, “Avalon 3,” signalling the commencement of operations.
2010
Avalon expands its presence, reaching Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Palestine, Sudan, Yemen, and the UAE.
2006
Avalon Pharma obtains the Ministry of Health (MOH) license to manufacture medicines.
2004
Commencement of export to GCC countries.
2002
Medico is established an initiates distribution operations.
2000
Avalon makes its debut in the Saudi retail market.
1998
Avalon Pharma is founded along with the inaugural manufacturing facility, “Avalon 1,” under the banner of Middle East Factory for Chemical Products, marking the commencement of operations.
Year in Review
2024 marked a transformative year for Avalon Pharmaceutical, underscored by significant growth, operational advancements, and strategic initiatives. The Company capitalised on its IPO success, embraced the ACE (Accelerate, Catalyse, Expand) strategy, and took significant strides toward achieving Vision 2030 objectives. These efforts reinforced Avalon’s position as a national champion and a leading regional player in consumer health and high-tech pharmaceuticals.
Key Achievements
1. IPO Success and Financial Performance
Top-line (16.4%) and bottom-line (21.3%) growth.
2. Record Product Registrations
Avalon registered 39 new products.
3. Strategic Partnerships and Localisation
Avalon expanded partnerships. These collaborations facilitated localised production.
4. Sustainability Initiatives
Transitioning to Saudi electric power in new facilities.
5. Cyber Resilience
By proactively enhancing cybersecurity measures, Avalon ensures business continuity and protection.
Operational Highlights
1. Operational Excellence
Avalon’s production facilities operated at 85% capacity utilisation, a benchmark in the pharmaceutical industry. The Company also maintained 24/7 operations to meet market demands.
2. Strategy Implementation through SMO
The newly established Strategy Management Office (SMO) became a key driver of the ACE framework.
Looking Ahead
Avalon is poised to make 2025 a year of focus, with plans to:
Construct a third factory for oncology, ophthalmic and injectable products.
Launch innovative pharmaceutical solutions supported by a substantial increase in the R&D budget.
Expand into new markets while maintaining a commitment to sustainability and societal impact.