Eli Lilly to establish production of insulin in Russia

US pharma major Eli Lilly (NYSE: LLY) has reached an agreement with one of Russia’s leading drugmakers, R-Pharm, for the production of its Humulin (insulin) in Russia.

Under the terms of the agreement, production will be started in 2015 at R-Pharm’s facilities located in Kostroma. Localization of production will allow Lilly to participate in tenders for public procurement of drugs for state needs.

According to DSM Group, Russia’s leading analyst agency in the field of pharmaceuticals, insulin consumption in Russia in 2013 amounted to 11.1 billion roubles (about $317 million), being equivalent to 9 million packages. Lilly’s market share is 19.2% in value and 24.5% in volume terms. Lilly’s total sales in Russia in 2013 amounted to 4.9 billion roubles ($130 million).