OREANDA-NEWS. Rostec Corporation and Genfa pharmaceutical company signed a memorandum in order to establish a joint venture with the investment amount of up to 100 million dollars. The main purpose of the JV is the localization of production of medicines with transition to the full cycle of development, clinical trials, production and distribution of drugs.

This step will contribute to achieving the independence of Russia in the field of biological safety, and to providing the national health system with modern pharmaceuticals manufactured in Russia.

The company will encompass three blocks: biotechnology, oncological agents, as well as antibiotics and hormonal pharmaceuticals. The venture plans to develop its own line of import-substituting medicines (over 30 products) and to manufacture existing generic drugs in the most complex and key segments of the market (oncology, neurology, nephrology, hematology, etc.). According to the press release, the venture expects to produce the total of about 60 import-substituting products.

Establishing a competitive full-cycle production of the most essential pharmaceuticals in Russia is necessary to ensure national security of the country

Sergey Chemezov, General Director, Rostec

"This is an important project for the entire Russian market of pharmacology, which over the past 20 years has been heavily dependent on the import of medicines," said Sergey Chemezov. “Establishing a competitive full-cycle production of the most essential pharmaceuticals in Russia is necessary to ensure national security of the country; it is one of the key areas of import substitution. Rostec looks forward to collaborating with leading domestic manufacturers in order to build the model of production cooperation. Such cooperation will allow to upgrade the existing plants and build new ones, create relevant scientific and production infrastructure, as well as implement the transfer of technology".

The document on the establishment of the Joint Venture was signed by Director General of the National Immunobiological Company (NIC, 100% of the shares owned by Rostec) Nikolay Semenov and member of Genfa Board of Directors Alexander Vinokurov.

"We plan to select the site for the production facility by the end of this year,” emphasized Nikolai Semenov. “The plant will be constructed during 2015-2016. The amount of investment in the project will amount to 100 million dollars. Investments in research and development will ensure the growth of national potential, and a significant contribution to the realization of the state program PHARMA 2020 will be made.

The plant capacity in the first phase will amount to 1 million packages of pharmaceuticals a year. Products of the Joint Venture will be utilized to replace the expensive foreign pharmaceuticals, which will make the medicine more affordable for low-income population.

“Uniting the potential of Rostec and Genfa will create one of the largest and most efficient participants of the Russian pharmaceutical market," said a member of Genfa Board of Directors Alexander Vinokurov.

In March 2014, Rostec and the Ministry of Health of Russia signed an agreement that provides for joint activities in the field of immunobiology and immunobiological industry. It involves the participation of the parties in the implementation of the State policy in regards to circulation of pharmaceuticals, as well as the organization of implementation of State programs in the specified areas. Under the agreement, the Ministry of Health and Rostec plan to contribute to the development of public-private partnership in the production of medicines, including vaccines and blood specimen. The venture also plans to implement complex projects in collaboration with foreign companies in order to transfer appropriate technologies and localize the production of modern immunobiological products in Russia.

National Immunobiological Company is Rostec pharmaceutical holding for development and manufacture of immunobiological drugs. The main challenge of the company is to ensure the sovereignty of Russia in the field of biosafety.