Offset contracts will allow Moscow city to meet its needs in some essential drugs – The Pharma Letter

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The government of Russia’s capital Moscow city, together with private investors will invest about 10 billion roubles ($137 million) in the construction of at least three large-scale pharmaceutical enterprises, which will produce more than 110 drugs for the city’s needs within the next several years, according to recent statements by the Deputy Mayor of Moscow for Economic Policy and Land and Property Relations Vladimir Efimov.

Building of the factories will be carried as part of offset contracts signed with investors, reports The Pharma Letter’s local correspondent.

According to Mr Efimov, the annual purchases of drugs from these factories by the Moscow city will reach 33.5 billion roubles ($463 million). 

The first of such contracts was signed by the Moscow city government with the local drugmaker ZAO Biocad in 2017. Under its terms, the investor must invest 3 billion roubles in the establishment of an enterprise for the production of 40 drugs for oncological and immunological profile.

So far, the company has already invested 2 billion roubles in the project and launched the first production stage at the Technopolis Moscow special economic zone last autumn. In exchange for the localization of production, the city will purchase manufactured drugs for a total of 14 billion roubles for seven years. 

Deal with R-Pharm unit

The investor as part of a second offset contract, signed 2018, was R-Opra LLC, which is part of the R-Pharm group of companies. The subject of this contract was drugs used in the treatment and prevention of endocrine, oncological, cardiological and other diseases – a total of 56 drugs. As part of the offset contract, the company will invest at least 5.8 billion roubles in the establishment of production and ensure supplies for the city’s needs on the total sum of 18.4 billion roubles. The construction of the enterprise is already underway at the Alabushevo site of the Technopolis Moscow SEZ.

Finally, the third offset contract was signed in February this year with the Moscow Endocrine Plant. The investor must localize the production of 20 drugs: antiglaucoma, antibacterial, analgesic, as well as antidepressants and antipsychotics. The value of investments in the project will amount to 1 billion roubles. For its part, the city of Moscow guarantees the investor the purchase of drugs for 1.1 billion roubles within eight years. 

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