Saidal and Sanofi Ink Vaccine Development Deal to Boost Algerian Pharmaceutical Capacity
Image: Algerie Eco
Takeaway
This agreement signals a growing trend of international pharmaceutical companies partnering with local manufacturers in emerging markets like Algeria to expand vaccine production capacity. Investors should monitor Saidal's future financial performance and market share as it potentially gains a competitive edge through this collaboration. The partnership could also influence Algeria's attractiveness as a regional hub for pharmaceutical manufacturing.
Algeria's state-owned pharmaceutical group Saidal and French pharmaceutical giant Sanofi's vaccine division signed a memorandum of understanding on Thursday, February 26, 2026, to collaborate on the development and production of vaccines for human use. The signing ceremony occurred under the supervision of the Minister of Pharmaceutical Industry, Wassim Kouidri, at the ministry's headquarters. Mourad Belkhelfa, among other officials, attended the event.
This agreement is a strategic move to strengthen Algeria's national capabilities in the pharmaceutical industry. The Algerian government established the Ministry of Pharmaceutical Industry (MOPI) and the National Agency for Pharmaceutical Products (ANPP) in 2021 to modernize the country's pharmaceutical sector. In 2021, local drug production by pharmaceutical companies in Algeria amounted to €2.5 billion. Algeria is the second-largest pharmaceutical market in Africa, with an estimated value of $4 billion.
Sanofi has been expanding its vaccine manufacturing capabilities globally. In 2024, Sanofi expanded its global industrial footprint with two cutting-edge Modulus facilities in Neuville, France, and Singapore, representing the future of manufacturing, offering unprecedented flexibility and responsiveness across vaccine and biological platforms. These facilities can produce up to four vaccines or biomedicines simultaneously and can transition production in as little as 7 to 10 days. Sanofi also has a vaccine production and distribution plant in Sidi Abdellah, Algeria, with a production capacity of 100 million drug units per year, representing 80% of Sanofi's output in Algeria.
The partnership between Saidal and Sanofi could lead to increased domestic vaccine production in Algeria, reducing reliance on imports. In 2019, Algeria's pharmaceutical import bill amounted to $2 billion, including $600 million for cancer medications and $400 million for insulin. Increased local production could also create new jobs and stimulate economic growth in the pharmaceutical sector. Major international pharmaceutical players, particularly from France, dominate the Algerian market, with companies like Sanofi, Novo Nordisk, and Pfizer.
In May 2025, Sanofi launched a project with Vietnam Vaccine JSC (VNVC) to establish a vaccine manufacturing facility in Vietnam, projected to produce 100 million doses annually, with operations expected to begin by the end of 2027. The Algerian pharmaceutical industry is promising and has made significant strides in achieving self-sufficiency in several drug categories. The next steps to watch for include specific vaccine development plans and timelines resulting from the Saidal-Sanofi agreement, as well as potential investments in upgrading Saidal's facilities.