Fourteen years after starting Oncoclínicas&Co, Dr. Bruno Ferrari has built one of the largest and most respected medical groups in Latin America, one that specializes in oncology, hematology, radiotherapy, and genomics.
Now, Oncoclínicas&Co is expanding its operations into the Kingdom of Saudi Arabia (KSA) through a joint venture with the Advanced Drug Company for Pharmaceuticals, a part of the Al Faisaliah Group, one of the KSA’s largest conglomerates.
HRH Prince Mohammed K.A. Al Faisal, President of Al Faisaliah Group and future chairman of the joint venture, was ebullient about the new relationship. “We are joining forces to improve cancer care. Our aim is to become the top private cancer treatment center for a region of over 300 million people. We will offer advanced treatments and expert care to save lives and raise the bar in cancer treatment,” he stated.
Under the agreement, Oncoclínicas&Co will establish a state-of-the-art oncology treatment facility in Saudi Arabia based on its model of care. The Brazilian firm expects to invest US$10 - US$20 million over the next three years.
In the joint venture, Oncoclinicas will hold a 51% share and Al Faisaliah a 49% share.
Oncoclínicas&Co was born out of Dr. Ferrari’s recognition, while enrolled in an observatorship at Houston’s famed M.D. Anderson Cancer Center, of just how far behind his native Brazil was in addressing this life-threatening disease.
Oncoclínicas&Co. has now built a specialized model focused on the whole oncology treatment journey, combining operational efficiency, humanized care, and high specialization. Its medical team in Brazil consists of 2,700 specialist physicians at 145 units in 39 cities, mainly focused on oncology.
With a goal of democratizing cancer treatment, Oncoclínicas offers a complete system composed by integrated outpatient clinics and high-complexity cancer centers. Just last year the team performed a combined 635,000 treatments.
Adding to its prestige, Oncoclínicas is an exclusive partner in Latin America of the Dana Farber Cancer Institute, affiliated with the Harvard Medical School.
Speaking of the joint venture, Dr. Ferrari said, “We are thrilled to expand our premier oncology treatment to the KSA and wide GCC nations. Our innovative service model will provide cancer patients with greater access to best-in-class care, and our dynamic business model provides shareholders and partners with a strong foothold for growth in the region.”
Oncolinicas’ chief financial officer Cristiano Affonso says his firm took an interest in expanding its services to Saudi Arabia after learning during a government-sponsored event that the country did not at that time have a healthcare provider specializing in oncology.
A 2019 Saudi-sponsored report had found that every oncologist who responded said cancer treatment shortages constituted a problem at their center. They also urged that the standardization of the definition of cancer drug shortages be recognized at the national level. The nation’s oncologists created a nine-point plan of action focusing on addressing the shortfall.
Saudi Arabia has notably been advancing its healthcare infrastructure as part of a national vision to enhance citizen well-being, and Al Faisaliah Group is renowned for its robust track record across various industries, including healthcare, life sciences, food and beverage, and electronics. The firm’s experience and extensive local knowledge are pivotal to the success of the joint venture.
The project includes developing Saudi Arabia’s first state-of-the-art cancer outpatient care center in Riyadh, fitted with the latest medical technologies. The Riyadh center will be led by top oncologists within the Kingdom and enabled by evidence-based clinical protocols. The primary focus will be on outpatient care in diagnostic medicine and treatments for chemotherapy and radiotherapy.
This pioneering facility will be the precursor to a broader strategy of establishing a network of cancer outpatient clinics through the Kingdom, making pioneering cancer treatment widely accessible to all Saudis. The expansion is now being tailored to meet the specific requirements of the Saudi Arabian healthcare sector and to ensure that advanced cancer care is much more accessible across the nation of 32 million, significantly improving healthcare delivery.
With a 2022 GDP of US$1.1 trillion, Saudi Arabia has the largest economy in the Gulf region. The Saudi economy has been growing at 4% per year over the past three years. The oncology market in Saudi Arabia is estimated at US$3 billion for 2024, according to the World Health Organization (WHO) and Saudi Sensus.
Oncoclinicas anticipates a potential revenue of about US$550 million and an EBITDA [earnings before interest, taxes, depreciation, and amortization] of US$150 million by the joint venture’s fifth year. That estimate takes into account additional units to be implemented and financed by the Saudi company’s own cash flow.
This partnership represents the internationalization of Oncoclínicas’ high-quality business and oncology care model on an EMEA and truly global scale, reaffirming the company’s commitment to excellence and innovation in cancer treatment, as well as presenting an opportunity to tap into new oncology frontiers.
Duggan Flanakin is a senior policy analyst at the Committee For A Constructive Tomorrow who writes on a wide variety of public policy issues.
