Saudi Healthcare Market News – August 2026
A roundup of key developments in the Saudi listed healthcare sector for the month of August 2026.
📰 1. Avalon Pharma Signs Major Biosimilar Deal
Middle East Pharmaceutical Industries Co. (Avalon Pharma) announced a strategic agreement with Bio-Thera Solutions on August 17. The company secured exclusive rights to register and commercialize a biosimilar for Dupilumab across Saudi Arabia and the MENA region. The 15-year deal includes the potential for future technology transfer and local manufacturing.- Financial Impact: The contract is valued at less than 5% of the company’s 2025 revenue, but cumulative revenue is estimated to be no less than SAR 400 million during the first seven years, starting from the product’s expected launch in 2031.
📰 2. Dallah Healthcare Posts Mixed 2Q Results
Dallah Healthcare Company reported a 4% year-on-year (YoY) revenue increase to SAR 1,107.9 million for the second quarter of 2026, driven by an 8.9% rise in patient visits. However, net income fell 19.5% to SAR 100 million due to higher operating costs for the Mina emergency hospital and a one-off zakat provision reversal from the previous year. The company also received SAR 466.7 million from selling its stake in Dr. Mohammed Rashed Al Faqih Company, which it plans to use to pay down debt.- Analyst View: U Capital maintains a Buy rating with a target price of SAR 129.4, citing a positive outlook on earnings recovery from acquisitions and utilization improvements.
📰 3. UBS Adjusts Dallah Healthcare’s Target Price
Following its 2Q results, UBS reduced its price target for Dallah Healthcare, maintaining a Neutral rating on the stock. This adjustment comes as the broader market assesses the company’s post-acquisition integration and profitability trajectory.📰 4. Mouwasat Medical Services Gets a Price Target Hike
AlphaMena lifted its price target for Mouwasat Medical Services on August 7, while affirming a Buy rating on the stock. This reflects a positive analyst outlook on the company’s operational and financial performance.📰 5. SMC Healthcare Shows Robust Profit Growth
SMC Healthcare reported a strong 24.25% YoY increase in net profit to SAR 45.18 million for the second quarter of 2026. This growth was driven by a 5.66% revenue increase to SAR 401.33 million, supported by improved business mix, operational efficiency, and higher outpatient activity.📰 6. Scientific & Medical Equipment House Wins Defense Contract
Scientific & Medical Equipment House Co. announced on August 16 the award of a significant SAR 127.66 million contract. The company will provide catering services to the Ministry of Defense’s Armed Forces Hospitals in the Western Region for a period of three years.- Financial Impact: The contract’s financial impact is expected to be reflected in the company’s results starting from the second quarter of 2027.
📰 7. SFDA Launches NADR Program for Rare Diseases
The Saudi Food and Drug Authority (SFDA) inaugurated a new regulatory pathway, the NADR program, designed to accelerate the development and approval of drugs for rare diseases. The program offers regulatory incentives to developers and aims to expedite patient access to essential treatments, a move expected to benefit the broader pharmaceutical and biotech ecosystem.📰 8. Saudi Arabia Advances Digital Health with International Connectivity
In a move to strengthen its digital health leadership, the Ministry of Health launched a digital link between the Seha Virtual Hospital and Uzbekistan’s Ministry of Health. This initiative enables cross-border consultations and treatment, showcasing Saudi expertise in virtual care and supporting Vision 2030 goals for health investment.📰 9. King Saud University Initiates Robotic Telesurgery Project
King Saud University‘s medical city launched a telesurgery project in August where surgeons remotely performed seven operations over three days. Patients were at King Khalid University Hospital, while the surgical teams operated from the virtual health hospital’s robotic surgery suite.📰 10. Saudi Organ Transplant Center Coordinates Life-Saving Operations
The Saudi Center for Organ Transplantation reported that it coordinated four organ retrieval operations from brain-dead donors over a week. This national effort resulted in 14 life-saving transplants for patients, including children, and involved collaboration with multiple hospitals across the Kingdom.Source: Compiled from market reports and official announcements for August 2026.
