Global insulin majors may lose Russian market due to new state monopoly

Novo Nordisk (NOV: N), Sanofi (Euronext: SAN), Eli Lilly (NYSE: LLY) and other multinational drugmakers may lose their positions Russian insulin market, due to forthcoming establishment of a state insulin monopoly on the basis of Rostec, a state corporation, which is headed by Sergey Chemezov, a Russian millionaire, who is reportedly close to the country’s President Vladimir Putin, reports The Pharma Letter’s local correspondent.

According to Rostec’s plans, the newly established company should become the sole supplier of insulin for state needs, while its production should take place at the facilities of the company’s Bioran subsidiary in the city of Pushchino of the Moscow region.

It is planned that a new plant will focus on a full cycle of production of insulin and its analogues, while the volume of investments in the project is expected to reach 330 million euros ($358 million). The majority of funds for the project will be provided by the Russian Vnesheconombank, one of Russia’s largest banks.