Playing ball with Russia in the pharma sector

Commenting on last week’s announcement that Takeda Pharmaceuticals (TYO: 4502) had completed its $96 million pharmaceutical manufacturing facility in Yaroslavl, Russia (The Pharma Letter September 11), industry expert GlobalData noted that, .according to the Russian government: "Takeda is one of the flagship companies in Yaroslavl's pharmaceutical cluster and is the first major international pharmaceutical company to invest in a new world class manufacturing facility in the region.”

Having local medicine manufacturing capacity is increasingly important in Russia, and Takeda’s announcement reinforces the growing presence of pharmaceutical companies in the country, said GlobalData. Despite earlier fears that the Russian government’s implementation of measures aimed at reducing the country’s reliance on imported drugs from about 80%, and giving preference to domestically-manufactured drugs in its national reimbursement system, would impede the interest of foreign pharmaceutical and biotech companies in its economy, recent evidence allays such concerns.

In July 2012, Novartis announced a range of products that will be produced at its future $150 million Russian plant, which is currently under construction close to St Petersburg, and said its aim since 2010 has been to invest $500 million in Russia by 2015 in an attempt to strengthen its position in the country. In addition, Teva Pharmaceuticals is on the verge of commencing the construction of a factory, which could be worth up to $100 million, in Yaroslavl later this month. The new facility, which would specialize in the production of tablets for the treatment of cardiovascular, neurological and psychiatric diseases, is expected to launch in 2014.