Arab Finance: The African vaccine and medicine market is valued at approximately $50 billion annually, as highlighted by a World Economic Forum report.

In Egypt, the pharmaceutical sector is thriving, with a market size exceeding EGP 215 billion in 2023, according to the Egyptian Drug Authority (EDA). However, Africa remains heavily reliant on healthcare imports, including vaccines.

To address this issue, Gennecs Holding, the pharmaceutical arm of the UAE-based El Daba Holding, is developing the GennVax facility. This aligns with Egypt Vision 2030’s healthcare objectives and aims to enhance national drug security and public health across Africa.

In light of these developments, Arab Finance interviewed Nibal Dahaba, General Manager of Gennecs Holding and GennVax Facility. She discussed the company's vision to transform healthcare in Egypt and Africa, the critical role of GennVax in achieving vaccine self-sufficiency, and the challenges encountered during the project's establishment.

1-Can you tell us about the vision and mission of Gennecs and GennVax and how they align with Egypt's healthcare goals?

Gennecs is committed to aligning its vision and mission with Egypt Vision 2030’s healthcare, aimed at localizing vaccine production. Despite the country’s robust pharmaceutical infrastructure with over 1,000 production lines, it remains in need of developing local or regional vaccine manufacturing facilities.

This is because biological products, including vaccines and oncology treatments, require technology transfer from innovators to create viable alternatives. Hence, there is a critical need for local vaccine production to ensure national drug security.

GennVax, a subsidiary of Gennecs, is strategically positioned to address this gap by manufacturing 23 vaccines as part of the compulsory immunization schedules for children in Egypt and across Africa and vaccines under consideration for the National Immunization Program (NIP).

This initiative aligns with Egypt's national healthcare goals and supports the broader African vision of producing at least 60% of its vaccine needs locally by 2040, as outlined by the World Health Organization (WHO).

The establishment of GennVax represents a significant step toward achieving these objectives. By creating a hub for vaccine manufacturing in Africa, GennVax aims to mitigate supply chain vulnerabilities that arise when foreign companies alter prices or restrict the availability of essential medicines.

With multiple GennVax facilities needed across the region, this project will play a pivotal role in enhancing access to vaccines and improving public health outcomes throughout Africa.

2-How has Gennecs managed to secure exclusivity for COVID-19 vaccines in Egypt, and what are the company's next steps?

Gennecs has successfully secured exclusivity for COVID-19 vaccines in Egypt, becoming the only private company authorized to procure these vaccines for the government. This strategic position was particularly significant for the Sputnik vaccine, the first COVID-19 vaccine available in the country.

Additionally, Gennecs obtained exclusive rights to represent Moderna in Egypt, enhancing its role in the vaccine procurement landscape and ensuring access to a broader range of vaccines for the Egyptian population.

Following this success, Gennecs recognized the necessity of a robust vaccine production portfolio. GennVax is developing a comprehensive portfolio of 23 vaccines, which will support Egypt's NIP and address both mandatory and non-mandatory vaccinations, including flu and travel vaccines.

This initiative is part of Gennecs' broader strategy to establish a state-of-the-art manufacturing facility, GennVax, aimed at enhancing local vaccine production capabilities and meeting regional health needs across Africa.

3-What strategies does Gennecs employ to enhance collaboration with international partners?

Gennecs employs a multifaceted strategy to enhance collaboration with international partners, focusing on technology transfer and building state-of-the-art manufacturing capabilities.

The company has secured 14 technology transfer agreements with global vaccine producers, aiming to increase them to 23 technology transfer agreements and positioning itself not just as an exclusive agent but as a key player in the local vaccine manufacturing landscape.

Central to this strategy is establishing the modern manufacturing facility GennVax that meets the stringent requirements of the Golden License, which emphasizes technology transfer as a critical component. Located in the strategic Suez Canal Industrial Zone, this facility is designed to comply with international standards, including WHO prequalification and European Good Manufacturing Practices (GMP).

GennVax relies on a team of international experts in vaccine production, which has enabled the company to secure unprecedented manufacturing contracts in the region. This extensive network of suppliers has been attracted by the factory's design and its potential for contributing to the national economy and meeting global quality standards.

Through these strategic partnerships and investments, GenVax aims to produce around 14 vaccines locally in Egypt, with additional contracts under negotiation. This collaborative approach not only enhances Gennecs' manufacturing capabilities but also positions Egypt as a significant player in the regional vaccine market, ultimately contributing to improved public health outcomes across Africa.

4-How is GennVax capitalizing on the growing demand for vaccines in emerging markets, particularly in Africa and the Middle East?

GennVax is strategically capitalizing on the growing demand for vaccines in emerging markets, particularly in Africa and the Middle East, where the annual demand for vaccines is estimated at 1 billion doses. However, current coverage only reaches about 60% of African children, highlighting a significant gap.

To fully immunize all children across the continent, approximately 1.5 billion doses are needed annually. Yet, local production remains virtually non-existent, with only a minimal fraction, around 0.01%, being packaged in Africa.

To address the substantial shortfall in vaccine production, it is essential for African governments to prioritize the establishment of vaccine manufacturing facilities, such as GennVax, to strengthen the region's healthcare resilience and self-reliance.

This perspective highlights the critical need for local manufacturing capabilities to bridge the gap between vaccine demand and production on the continent.

By advocating for the creation of multiple facilities, Africa can enhance its self-sufficiency in vaccine manufacturing, ultimately improving public health outcomes and ensuring better access to vaccines for its population.

5-What are Gennecs' key financial priorities and growth strategies for the next five years? How does the company plan to finance its expansion and R&D initiatives?
Gennecs has identified key financial priorities and growth strategies for the next five years, focusing on significant investments in vaccine production and research and development (R&D).

Gennecs is the pharmaceutical arm affiliated with El Daba Holding, a rapidly growing global conglomerate in Egypt, partnering with local and international stakeholders that leverage our regional and global outreach.

Their commitment to localizing drug production has attracted additional investors, including stakeholders from Egypt, Saudi Arabia, and the UK, who recognize the importance of establishing a robust vaccine manufacturing industry.

Gennecs current biggest project is GennVax facility. The total investment for the factory is projected at $150 million, excluding R&D costs. This facility will focus on vaccine production and incorporate an R&D center, essential for advancing scientific research in the region.

Establishing a biological arm is a critical step for Gennecs, especially given the historical underinvestment in scientific research in the area. The company emphasizes that funding for R&D is typically sourced from government initiatives, as these projects often take years to yield results.

Gennecs aims to address the challenges of securing funding for scientific research by advocating for greater governmental support. The company recognizes that while immediate results from R&D may not be apparent, sustained investment is crucial for long-term success and innovation in vaccine development.

By prioritizing these financial strategies and fostering collaboration with various investors, Gennecs is well-positioned to expand its operations and enhance its contributions to public health in Egypt and across Africa.

6-Can you give our readers insights on the company’s recent investment of $25 million in GennVax?

Gennecs has invested $25 million in GennVax to establish a state-of-the-art vaccine manufacturing facility in Egypt. The funding has been allocated strategically as follows:

• Land Acquisition: The investment was used to purchase land within the Suez Canal Free Zone from Orascom, providing a solid operational base.
• Team Recruitment: Gennecs has recruited a skilled team, primarily composed of foreign experts from multinational companies, to train local workers. This addresses the limited local expertise in biological production, marking an important step toward building sustainable and self-reliant healthcare systems.
• Golden License: Gennecs obtained a golden license by meeting stringent criteria necessary for vaccine manufacturing, the only vaccine production facility in Egypt to achieve this milestone.
• Equipment Contracts: The investment also covered contracts for essential equipment, including packaging and filling lines sourced from accredited companies in Western Europe.

This strategic investment positions Gennecs as a leader in vaccine production in Africa and the Middle East, enhancing local manufacturing capabilities to meet regional health needs effectively.

7-Can you elaborate on the significance of the GennVax facility and its expected impact on vaccine availability in the MEA region?

The GennVax facility is poised to play a significant role in enhancing vaccine availability across the Middle East and Africa (MEA) region.

In alignment with the Egyptian and Saudi Vision 2030 initiatives, which prioritize localizing the vaccine industry, there are plans to establish a GennVax facility in Saudi Arabia to cater specifically to the Gulf Cooperation Council (GCC) countries.

Egypt's commitment to local vaccine production was among the first in the region, gaining urgency following the COVID-19 pandemic. The country was among the early participants in the COVAX alliance, highlighting the critical need for self-sufficiency in vaccine manufacturing.

Gennecs has engaged with the Saudi government and relevant sectors to discuss the establishment of GennVax Saudi, which aims to serve the entire GCC region. This collaboration underscores the importance of GennVax as a local initiative and a potential hub for vaccine production that addresses regional health needs effectively.

By increasing local manufacturing capabilities, GennVax is set to contribute significantly to improving vaccine access and public health outcomes throughout the MEA region.

8-What are some of the biggest challenges currently facing the pharmaceutical industry in Egypt, and how is Gennvax addressing those challenges?

One major hurdle is the difficulty in obtaining technology transfer from multinational companies, which is essential for local vaccine production. Gennecs has successfully navigated this challenge by convincing 14 suppliers, including prominent European, Chinese, South Korean, and Indian manufacturers, to collaborate.

These suppliers are key players in the vaccine market and are associated with UNICEF, the largest vaccine procurement body globally. Gennecs' unique position as a group of vaccine experts and its factory's alignment with supplier technology has been critical in securing these partnerships.

On the regulatory front, the EDA has achieved a Maturity Level 3 (ML3) classification from the World Health Organization (WHO), enabling local firms to apply for pre-qualification and export approvals. Egypt is now the third country in Africa to reach this level, which is vital for enhancing market access.

However, the government's support is crucial to improving the vaccine industry, given that Egypt's birth cohort is approximately 2.5 million annually, highlighting the importance of local vaccine production to meet public health needs effectively.

9-How is GennVax preparing for future crises and building resilience into its operations to minimize disruptions and ensure business continuity?

GennVax project represents our preparation for the future. This project aims to ensure that Egypt has a reliable supply of vaccines to address potential health emergencies, similar to the preparedness seen in countries like India and China.

The significance of GennVax lies in its ability to create a robust infrastructure for vaccine production, enabling the country to respond swiftly to emerging health threats. For example, the HIV epidemic began in Congo and spread across Africa for decades before significant pharmaceutical intervention occurred.

GennVax is designed to prevent such delays by establishing a strain bank focused on African diseases and developing research centers dedicated to vaccine innovation.

By prioritizing crisis readiness, GennVax will enhance Egypt's capacity to produce vaccines tailored to local health challenges, thereby contributing to regional stability and public health security.

This forward-thinking approach positions Gennecs as a critical player in the global vaccine landscape, ensuring that the country is equipped to handle future health crises effectively.

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