Médéa Antibiotics Plant Project Accelerated by Saidal
Younes Bouarara, Director General of the public pharmaceutical group Saidal, recently conducted a working visit to inspect the construction site of a future industrial complex for manufacturing antibiotic raw materials. Located in the commune of Harbil in Médéa, this inspection was carried out in line with directives from the Minister of Pharmaceutical Industry, Dr. Wassim Kouidri, to assess the progress of this priority project. The complex, which had been halted for over 15 years, holds significant strategic importance for Algeria's health sovereignty and economic stability.
Upon completion, the industrial complex is projected to have a production capacity of 750 tons per year. This output is critical given that Algeria currently imports approximately 75.4 billion Algerian dinars worth of antibiotics and active ingredients annually. The realization of the Harbil unit is expected to substantially diminish this financial and logistical dependence by ensuring a foundational local production. This investment is an integral part of Saidal's comprehensive development plan, which focuses on modernizing its industrial infrastructure and gradually transitioning from a national supply model to an export-oriented strategy, with the ultimate goal of reaching a global turnover approaching one billion US dollars.
The facility's production capabilities are set to meet a quarter of Algeria's needs for active antibiotic ingredients, with the remaining output designated for export. From an economic perspective, this local industrial production unit offers a major lever for optimizing public health expenditure. It will rationalize the costs incurred by the Central Pharmacy of Hospitals (PCH) by enabling direct procurement at national industrial cost prices, thereby eliminating intermediary margins applied by foreign suppliers and international freight costs. This reduction in acquisition costs will provide public hospital structures with greater financial flexibility while guaranteeing a consistent supply of critical molecules.
On the social protection front, the anticipated reduction in the unit cost of antibiotic treatments is expected to directly bolster the sustainability of the third-party payment system managed by the National Social Insurance Fund for Salaried Workers (CNAS). Lower pharmaceutical reimbursement charges will alleviate financial pressure on health insurance, consequently decreasing the risks of a structural deficit within the Social Security system. By stabilizing the financial equilibrium of this provident organization, the state aims to limit the need for public treasury subsidies, ensuring a more effective overall allocation of public funds.
