Avalon Report 2024

Strategy & Business Overview

Avalon Report 2024

Strategy & Business Overview

Avalon Pharma has established itself as a leading innovator in the pharmaceutical and healthcare industry with a diverse portfolio of over 70 brands.

These products span a wide range of therapeutic categories, ensuring Avalon’s ability to address a broad spectrum of medical needs.

Key Therapeutic Categories:

Respiratory

Cardiovascular

Alimentary & Anti-infectives

Musculoskeletal

CNS (Central Nervous System)

Genitourinary Systems

Commercial

As Avalon Pharma continues to solidify its position as a leading pharmaceutical company, the Commercial pillar plays a critical role in enhancing sales performance, market access, and operational efficiency. 

1. Strengthening Revenue Growth & Market Positioning

In 2024, Avalon Pharma achieved total revenue of 394 million, marking a 16.4% year-on-year increase.

Private Market Contribution

268 million

68% of total sales

Private Market Contribution

75 million

19% of total sales

Export Sales Expansion

50 million

13% of total sales

2. Optimising Profitability & Gross Margin Performance

In 2024, the company reported a gross profit of 243 million, with an overall gross profit margin (GP%) of 61.8%.

Private Market GP%

71.3%

Institutional Market GP%

36.7%

10.06 ppt improvement

Export GP%

48.7%

3. Expansion into New Markets & Growth Opportunities

The Commercial strategy has enabled Avalon to accelerate market expansion across key territories.

Domestic Growth Initiatives

Increased penetration in Wasfaty tenders, and hospital supply agreements.

International Expansion

UAE & Kuwait: Strong regulatory approvals and B2B collaborations.

New Market Entry Strategy: Focus on Egypt, Indonesia, Malaysia, and Morocco

4. Enhancing Commercial Execution & Operational Efficiency

Avalon Pharma is committed to maximising sales effectiveness and leveraging digital transformation to drive operational efficiencies.

Sales Force Optimisation

Implementation of structured territory management, enabling target market coverage and improved conversion rates.

Digital & E-Commerce Growth

Expansion of direct-to-consumer (DTC) strategies, including
e-commerce platforms and Project Matrix (influencer-led brand engagement).

Demand Forecasting

Enhanced market intelligence capabilities to optimise inventory planning and mitigate supply chain risks.

Manufacturing

Avalon Pharma’s manufacturing capabilities are a cornerstone of its commitment to delivering high-quality pharmaceutical products.

Comprehensive Manufacturing Capabilities

Avalon Pharma excels in producing over 300 SKUs, supported by a robust pipeline of more than 40 molecules under development.

Commitment to Sustainability and Compliance

Avalon Pharma upholds strict environmental and regulatory standards, reinforcing its dedication to responsible manufacturing:

Specialised Manufacturing Facilities

Avalon Pharma operates a network of cutting-edge facilities, each tailored to specific healthcare needs:

Private Label Expertise

As a trusted private label manufacturer, Avalon Pharma collaborates with customers to deliver high-quality products

Advancing Through Research and Development

Innovation drives Avalon’s manufacturing success. Its R&D centre fosters a culture of exploration, supporting product development through analytical expertise and cutting-edge technologies.

+300 SKUS

Avalon Pharma excels in producing

+40

Molecules under development

+270

Tablets and capsules annually

Operational Review

Avalon Pharma’s manufacturing operations in 2024 were marked by record-breaking performance, underpinned by robust processes and a commitment to excellence.

24/7

production across 80% of its manufacturing lines

ISO 14001

certification

High-demand products such as injectables and ophthalmological treatments, with commercialization expected by

2027

Vision for Growth

Avalon’s business development efforts align closely with its ACE strategy (Accelerate, Catalyse, Expand). These initiatives prioritise

Expanding market reach through strategic alliances and licensing agreements.

Enhancing manufacturing capabilities to meet global healthcare demands

Strengthening Avalon’s leadership position in key therapeutic categories

Operational Review

Avalon’s Business Development efforts in 2024 were pivotal in driving the Company’s strategic roadmap and aligning with its ambitious goals under the ACE framework—Accelerate, Catalyse, and Expand. With a focus on innovation, strategic alliances, and market expansion, the department significantly contributed to Avalon’s growth trajectory.

Strategic Alliances And In-Licensing

Avalon enhanced its partnerships with prominent retailers like Nahdi and Al-Dawaa

Market Expansion

Significant growth was achieved in export markets, with successful relaunches in Kuwait and the UAE

Innovation-Driven Pipeline

Avalon’s R&D efforts resulted in robust product innovation, supported by strategic technology transfer agreements

Using Renewable Energy

Safe Discarding

Go Green LRP Road Follow

Go Green LRP Road Follow

Reduce Power Consumption

Reduce Water Consumption

Reduce Generated Waste

Avalon Site go Green Project

Sustainability – A Stepping Stone to ESG

In line with Saudi Arabia’s Vision 2030, Avalon is fully committed to a sustainable future for all.

Encouraging Sustainable Practices

Avalon is always looking to digitise its activities where possible, significantly reducing the more conventional paper-based way of working.

The most substantial environmental impact, however, is seen in manufacturing, where Avalon is licensed and registered with the Saudi Environmental Authority.

2024 also marked a significant step for the Company, where it moved away from the older, diesel- powered generators to power its factories, instead sourcing electricity from the Saudi Electricity Company.

Expanding market reach through strategic alliances and licensing agreements.

Enhancing manufacturing capabilities to meet global healthcare demands

Strengthening Avalon’s leadership position in key therapeutic categories

Woman Empowerment

At Avalon Pharma, women empowerment is a key focus, ensuring that female employees have the resources, opportunities, and support to thrive in the workplace.

Leadership Development

Avalon Pharma offers leadership training and development programs specifically designed for women. 

Mentorship Opportunities

The company provides mentorship programs, pairing women with senior leaders to guide them

Work-life Balance Initiatives

Avalon Pharma is committed to supporting its employees’ well-being by offering flexible work schedules, remote working options, and family-friendly policies

Equal Pay and Advancement

Avalon Pharma ensures equal pay for equal work, promoting fairness and transparency in compensation and career progression.

Employee Programs

In 2024, several initiatives were launched to foster an inclusive, dynamic, and positive work environment.

Health And Safety

The Company ensure that every location, from factories to offices, has at least 1 health and safety specialist,

CSR Initiatives

Avalon’s CSR initiatives focused on societal and environmental impact, encompassing health campaigns, community support, and sustainability programs. 

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