Australian biotech group CSL’s vaccine unit CSL Seqirus has entered into an agreement with Saudi Arabia’s Ministry of Health to supply both seasonal and pandemic cell-based influenza vaccines and to establish local production at an industrial facility in Sudair City north of Riyadh.

Under the accord, CSL Seqirus will also collaborate with the Saudi manufacturer Vaccine Industrial Company to build domestic production capacity.

The partnership is expected to deliver cell-based flu vaccine supply for Saudi Arabia’s 2026/27 season, while also enabling the Kingdom to build pre-pandemic vaccine stockpiles.

The technology involved uses cell-based manufacturing rather than traditional egg-based methods, allowing more scalable and flexible vaccine production.

CSL said this supports the Kingdom’s objective to enhance pandemic preparedness.

The deal comes shortly after CSL announced a delay to its planned spin-off of the Seqirus unit, citing volatility in U.S. vaccine markets and a sharp drop in vaccination rates.

Although financial terms of the Saudi agreement were not disclosed, the timing signals a strategic pivot for Seqirus towards global manufacturing partnerships.

Saudi Arabia’s broader agenda includes reducing dependency on imported medicines and strengthening local manufacturing.

For CSL Seqirus, the Saudi deal expands its geographic footprint and positions the company as a partner for national vaccine-self-sufficiency programmes.

Execution will now be the key test: the manufacturing plant in Sudair City must be commissioned, local workforce trained and regulatory clearances achieved ahead of the 2026/27 flu season launch.