Verofarm company (making part of Abbott) will raise output of cancer drugs by 1.5 times after opening of a new shop in Belgorod. Company CEO Elena Bushberg has announced this earlier today. Under a large-scale modernisation program amounting to about RUB 3 bln, Verofarm commissioned a soft gelatin capsules shop at the Belgorod facility in September 2016. The company is planning to launch production of hormonal drugs in 2H2017, along with a line of nasal drops in early 2018.
The formal inauguration ceremony of the soft gel capsules workshop at Belgorod plant took place on 9 September. The production has started within the framework of implementing Veropharm's plant upgrade program with Abbott's total investments over RUB 3 bn.
Veropharm pharmaceutical company has inaugurated its production of 24 oncological drugs in the Petushkinskiy District. Investments into the enterprise to employ five hundred persons have amounted to RUB 7.4 bn.
"The new super-science-intensive, hi-tech and innovative production facility means 500 jobs, RUB 7.4 bn of investments and, what is the most important, 24 oncological drugs. Diseases are hard to prevent. It must be done professionally and properly. Therefore, we are planning to cooperate with Abbott and Veropharm for a long time. We are sure that the company will not remain complacent", said Ms. Svetlana Orlova, the Governor.
The Voronezh Veropharm plant (part of Abbott, USA), under an agreement with Disney will start production of children’s Band-Aid with the cartoon characters. The Abbott’s press announced so today.
The international healthcare company Abbott considers the possibility of exports to the markets of the CIS and other countries from Russia, said Michael Warmuth, President of the pharmaceutical division of Abbott.
“Currently we are actively expanding and updating the production sites of Veropharm (controlled by Abbott) in the Vladimir Region and Belgorod and this year we invested millions dollars in their development. Beaside the update, we also increase significantly the production capacity of our plants”, Wartmuth said in his interview to RIA Novosti.
He explained that those changes have long-term prospects, i.e., using Veropharm as a platform for the export of the products to other countries, not just in the CIS, but beyond it.
He said, that last year they discussed at the Forum the possibilities of Veropharm not just in the CIS and Eastern Europe, but also in North Africa. “Currently the company’s priorities are Russia, then the CIS and Eastern Europe, but then we may consider the prospects of South-East Asia and Africa. It’s not clear yet which of those idea will be implemented”, he concluded.
The Abbott company will complete a project to build a cancer drug plant in the settlement of Volginsky in the Vladimir Region by 2017, Abbott Russia head of PR Irina Guschina told Interfax.
“Construction on the plant began in 2011. The total investment in the plant between 2011 and 2016 will beRUB 7.4 billion”, Irina Guschina said.
She added that the plant under construction used to belong to Veropharm. Abbott became the new owner in 2014 after it established control over Veropharm by acquiring OOO Garden Hills, a holding company with around 98% of Veropharm equity, forRUB 16.7 billion. The deal was financed with Abbott’s own cash.
U.S.-based pharmaceutical company Abbott, which acquired Veropharm last year, is set to export drugs from Russian plants.
Abbott plans to launch an international business through the Veropharm brand and start exporting drugs from the company’s manufacturing plants, Michael Warmuth, Abbott’s Executive Vice President of Established Pharmaceuticals, said in an interview with the RBC.
In late 2014, Abbott finalised a 16.7 billion rouble ($264 million) deal for the purchase of around 98% in Veropharm, one of Russia’s largest producers of generic drugs, primarily in the field of oncology (see the interview).
Abbott’s international cancer drugs business in Russia will most likely be headquartered at the Veropharm plant that is under construction in the Vladimir Region, says Sergey Shulyak, General Director at DSM Group analytical company. According to his assessment, the plant has sufficient capacity for a large-scale exports programme, with only one or two years required to obtain the necessary certifications for shipments to Europe and the United States. Veropharm currently has three manufacturing plants – in the Voronezh, Belgorod and Vladimir regions (where the new facility will be built next to the existing one).
Until now, Russian pharmaceutical plants have exported a very small proportion of their output. According to analytical company RNC Pharma, Russia exported around RUB 15 billion worth ($237 million) of medications in 2014. In the first half of 2015, that figure already exceeded RUB 8 billion ($126 million, a 31% increase from the same period last year). The German-owned STADA subsidiary Nizhpharm was the major exporter, accounting for 11.6% of total exports last year. According to RNC Pharma data, neither Abbott (registered in Russia as Abbott Laboratories OOO) nor Veropharm were directly involved in the exports of their drugs from Russia. Their products were exported by distribution partners only, but the figures were negligible: 0.2% of Abbott Laboratories pharmaceuticals, and about 0.1% of Veropharm products were exported abroad, says RNC Pharma Development Director Nikolai Bespalov.
Nikolai Bespalov believes that over the next two to three years, when the factories of the foreign pharmaceutical giants reach their designed capacities, will see further development of exports from Russia. Yet, besides STADA only France-based Sanofi have announced an exports project: the company has recently obtained a Good Manufacturing Practice (GMP) certificate, which is essential for shipments to Europe, and stated that it will start exporting insulin from its Russian site in the Oryol Region to Germany in 2016.
Global healthcare major Abbott Laboratories has completed its acquisition of Russian pharmaceutical company Veropharm for 16.7 billion rubles ($305 million) in an all-cash deal. Veropharm is one of the leading generic drug manufacturers in Russia, and the deal will give Abbott a manufacturing presence in the country.
The deal makes sense in light of Abbott’s recent efforts to expand its generic drug business in high-growth emerging markets such as China, India, Latin America and Russia because of sustained sluggishness in developed markets. Per the terms of the deal, Abbott acquired limited liability company Garden Hills, which currently owns 98% of Veropharm. Abbott also assumed Veropharm’s net debt of 4.7 billion rubles ($136 million) as part of the deal. Veropharm is expected to contribute about $150 million to company sales in 2015.
This acquisition follows Abbott’s agreement with specialty pharmaceutical company Mylan to divest its developed market generic drug business and its $2.9 billion acquisition of Chile-based CFR Pharmaceuticals to expand its presence in Latin America. Abbott reshaped its branded generic business this year to focus solely on emerging markets, where it already generates 50% of company wide sales.
The Government Commission for the Control of Foreign Investment approved the acquisition by the American pharmaceuticals company Abbott Laboratories of the leading Russian pharmaceutical manufacturer OJSC Veropharm.
The transaction amounted to $650 million, and another $250 million will be spent on the construction of production facilities and the provision of local manufacturing. The investment is expected to create 1,500 jobs.
Abbot announced the signing of the final agreement to purchase the assets of Russian drug manufacturer OJSC Veropharm on June 24th.
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