Strategy
Commercial Performance and Markets
Balanced commercial performance, systematic market expansion, and operational efficiency supporting sustainable growth.
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Channels & Performance
Trade and Marketing
As Avalon Pharma continues to solidify its position as a leading pharmaceutical company, the “Trade” pillar plays a central role in improving sales performance, expanding market presence, and enhancing operational efficiency. This strategy aligns with the company’s commitment to sustainable growth, portfolio expansion, and accelerated digital transformation, ensuring long-term value creation.
Trade — Enhancing Revenue Growth and Market Position (2025)
During 2025, Avalon Pharma delivered strong financial and commercial performance, demonstrating its ability to achieve sustainable and balanced growth in a highly competitive market with cost pressures. This performance reflects the maturity of the company’s commercial strategy, the effectiveness of its operational model, and its ability to translate initiatives into tangible results. The company recorded total revenues of 460.5رmillion in 2025, achieving year-on-year growth of 17% compared to the previous year, supported by balanced performance across key channels and a clear focus on revenue quality and profitability sustainability.
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Balanced Performance Across Key Channels
Private Sector
The private sector continued to contribute as one of the main drivers of the company’s growth, generating revenues of 310ر million with a year-on-year growth rate of 15.6%. This performance was supported by strategic partnerships with major pharmacy chains, strengthened presence in hospitals, and increased sales through the “Wasfati” program, which helped expand patient reach and improve market coverage.
Government Sector:
Avalon Pharma delivered strong performance in the government sector, with revenues ofر 93.42 million, achieving growth of 23.4% compared to the previous year. This performance was supported by awarding of several government tenders and strengthened partnerships with official entities, reflecting the company’s efficiency and competitive capability in this vital sector.
Export Sales Expansion:
The company continued to expand its presence in the Middle East, Africa, and Asia, achieving export revenues of 57.02ر million with a growth rate of 14%. This growth resulted from effective distribution partnerships and targeting markets with promising growth potential, particularly in the UAE, Kuwait, and Iraq, along with active operations in Qatar, Bahrain, Oman, Jordan, Lebanon, Palestine, Yemen, Sudan, Libya, Morocco, Uganda, Armenia, and Bangladesh. This geographic expansion reflects a strategic approach that supports revenue diversification and strengthens export activities, in line with Saudi Vision 2030, which aims to diversify non-oil income sources and establish the Kingdom as a regional hub for the pharmaceutical industry.
Balanced Performance Across Key Channels
During 2025, Avalon Pharma continued to achieve strong financial performance, confirming its success in enhancing profitability and improving revenue quality, while maintaining balanced growth across various channels.
Revenues by Channels
By implementing well-considered pricing policies and improving cost structure efficiency, Avalon Pharma has successfully achieved sustainable profitable growth without compromising its competitiveness or market presence.
Commitment to Sustainable Growth and Value Creation The performance in 2025 reflects Avalon Pharma’s commitment to a long-term growth approach based on:
The company continues to invest in its regulatory and commercial capabilities, supporting the strengthening of its competitive position and reinforcing its role as a trusted partner in the healthcare sector.
- Strengthening Strategic Partnerships
- Expanding Patient Reach
- Developing a Product Portfolio that Meets Diverse Market Needs
- Maintaining High Levels of Quality and Compliance
Future Outlook
Avalon Pharma is confidently moving forward into the next phase, focusing on expanding its presence in priority markets, deepening partnerships locally and internationally, and continuing to deliver high-quality pharmaceutical solutions that meet the expectations of patients and the wider community.
Enhancing Profitability and Improving Gross Margin Performance
The financial performance for 2025 reflects Avalon Pharma’s ability to build on the achievements of 2024 and achieve a significant leap in profitability and financial efficiency. The final results confirm the strength of the company’s financial foundations and its readiness to continue sustainable growth and create long-term value for shareholders and partners.
Total Revenues
460.5Annual Growth Rate
17%Compared to 2024Gross Profit
286.8Gross Profit Margin
21.1%Improvement of 0.8 percentage points02
Market Expansion
Expanding into New Markets and Exploring Growth Opportunities
In 2025, Avalon Pharma focused on building future growth drivers by exploring new opportunities beyond traditional markets and developing flexible market entry models that enable efficient expansion while minimizing risks, all while maintaining high operational and regulatory readiness.
Exploring Markets with Promising Growth Potential
- Conducting market and regulatory feasibility studies to identify new markets with high population density and unmet therapeutic needs.
- Evaluating opportunities based on multiple criteria, including market size, ease of registration, pricing structure, and channel requirements.
- Building a prioritized list of markets suitable for entry in the short- and medium-term.
Developing Flexible and Scalable Market Entry Models
- Designing multiple entry models including distribution, licensing, and phased commercial collaborations, allowing for gradual market entry and reduced investment risks.
- Aligning the product portfolio with the requirements of each market from the evaluation stage, accelerating future launch readiness.
- Establishing clear operational frameworks for managing new markets in terms of planning, pricing, and supply chain management.
Turning Exploration into Tangible Opportunities
- Transitioning from the exploration phase to pilot implementation in selected markets.
- Building local partnerships based on clearly defined roles and performance indicators.
- Reducing the time from market entry decision to actual execution.
Establishing a Foundation for Long-Term Growth
- Developing a multi-year roadmap for new markets to ensure sustainable and profitable expansion.
- Enhancing the company’s readiness for future growth through the accumulation of regulatory and operational expertise.
- Creating future growth sources that support revenue diversification and reduce dependence on specific markets.
The year 2025 represents a turning point in Avalon Pharma’s approach to expansion, focusing on systematic exploration, building readiness, and converting opportunities into future growth pathways, thereby supporting long-term sustainable performance.
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Commercial Effectiveness
Enhancing Commercial Performance and Strengthening Operational Efficiency – 2025
In 2025, Avalon Pharma focused on enhancing commercial performance and improving the effectiveness of its operational model through an integrated framework that connects team empowerment, accelerated execution, and digital transformation, ensuring sustainable and scalable results.
Empowering Teams and Strengthening Execution Excellence
Investment was made in training, development, and capability-building programs for commercial and medical teams, alongside improving coverage models and territory management, supporting execution excellence and enhancing the quality of customer engagement and coverage levels.
Strengthening Market Relationships as a Driver of Value and Sustainable Growth
In 2025, market relationships were institutionalized as a strategic function focused on building long-term partnerships and transforming engagement with partners and consumers into actionable insights that strengthen loyalty, enhance market value, and support sustainable growth.
Aligning Efforts and Accelerating the Execution Cycle
In 2025, there was a clear strengthening of cross-functional coordination, with a strong focus on execution speed and operational discipline. This contributed to improving delivery and collection processes, accelerating responsiveness to market and brand requirements, and reducing the gap between planning and execution.
Data Analytics and Demand-Driven Planning
In 2025, Avalon Pharma integrated business analytics with demand- and seasonality-based planning to guide commercial decisions and provide partners with actionable insights. This approach enhanced forecast accuracy, improved seasonal planning, and aligned business plans with actual demand—strengthening supply chain efficiency, improving product availability, and supporting more sustainable growth.
Efficient Distribution and Customer-Centric Delivery
Distribution efficiency was enhanced and timely availability ensured through more targeted commercial campaigns, with a focus on empowering customers with the right knowledge and messaging and developing personalized experiences that strengthen loyalty and retention.