Pharmaniaga Bhd has entered into a joint venture (JV) agreement with Modern Healthcare Solutions Company Ltd to form and operate a JV limited liability company in Saudi Arabia.

Upon incorporation with Modern-Pharma Ltd, each party will have a 50 per cent equity interest in its share capital, Pharmaniaga said in a filing to Bursa Malaysia.

The proposed JV is part of the Pharmaniaga’s strategy to accelerate the growth plans of its pharmaceutical business to penetrate and capture the rapidly growing opportunities in Saudi Arabia.

“Through this partnership, Pharmaniaga can leverage on the experience and success that Modern has had in other collaborations, while capitalising on the many incentives and opportunities available through various agencies in the country,” Pharmaniaga said.

The proposed JV also offers an opportunity for Pharmaniaga to gain a foothold in the pharmaceutical market in the territory, which has attractive economic and demographic fundamentals as well as opportunities in the mid to long term.