Oncoclínicas sells Saudi Arabia oncology joint venture for $6.5 million

Brazilian oncology chain Oncoclínicas announced the sale of its 51% stake in Specialized Medical Treatment Company (SMTC), a joint‑venture operating in Saudi Arabia, to Al Faisaliah Group Holding Company and Advanced Drug Company for Pharmaceuticals for US$6.5 million in cash. The transaction, pending approval from Saudi authorities, is intended to simplify the company's portfolio, concentrate resources on Brazil and help reduce the estimated R$5.1 billion debt that led the firm to file for judicial recovery in July.

The Saudi venture, launched in August 2024 with a planned investment of US$10‑20 million over three years, was meant to expand Oncoclínicas’ oncology services abroad. Continued cash‑flow pressure, high interest rates and a slowdown in domestic growth prompted the company to abandon the international expansion and monetize the asset.

The sale is part of a broader wave of restructuring among major Brazilian firms facing financial distress, aiming to avoid further capital outlays and mitigate operational and currency risks linked to overseas operations.