Chinese drugmaker Gan & Lee cuts Russian presence

Chinese insulin manufacturer Gan & Lee Pharmaceuticals has sold a 51% stake in its Russian joint venture Endogenix to its partner, the Russian company Pharmaktiv.

Endogenix was established in 2012 as a joint venture between Gan & Lee and Pharmaktiv specializing on producing insulin glargine, an analogue of Lantus from the French pharma major Sanofi (Euronext: SAN).

Russian analysts explain the decision of the Chinese company to exit the Russian business by its unprofitability for foreign manufacturers at present. This is mainly due to the problems with the logistics of pharmaceutical active ingredients and, secondly, due to ever growing share of local pharmaceutical manufacturers in this market, which receive additional preferences from the state during the various state procurements.