The Russian pharma market is forecast to be worth over $25bn annually by 2018, but the Government’s measures to encourage 70% of products to be made locally restricts opportunities for international companies.
To overcome this, Mumbai, India-headquartered drug and API-maker Lupin has announced it is buying a 100% equity stake in Biocom, a Russian generics company and contract manufacturing organisation (CMO) based in Stavropol.
“We are excited about our entry into the Russian market through Biocom,” said Lupin’s CEO Vinita Gupta. “Russia is an attractive market and this acquisition will also enable our expansion into neighbouring markets as well as other Eastern European markets in the future.”
Biocom has 118 employees and its facility is GMP compliant, receiving an approved manufacturer status from the World Health Organization (WHO) in 2013. The company’s total sales were RUB 861.2 ($15m) last year.
Lupin has been on something of an acquisition streak of late, buying Dutch drug delivery firm Nanomi BV in February , and a Mexican eye drugmaker last year.
However, the Biocom deal comes just two months after Lupin bought Medquimica Industria Farmaceutica, a branded generics and OTC maker granting the firm access to the Brazilian market which, like in Russia, has a number or protective barriers to entry for foreign pharma firms.
At the time, Gupta said the acquisition was a “reflection of Lupin’s commitment to expand into the Latin American market and an important part of Lupin’s Emerging Markets play going forward.”