NovaMedica, a RUSNANO Portfolio Company, Enters into the Largest SPIC in the Industry to Start the Production of Pharmaceuticals from Scratch

07 March 2018

The Russian pharmaceutical company NovaMedica (an investment project of RUSNANO), the Ministry of Industry and Trade and the Kaluga region have entered into a special investment contract (SPIC). The document was signed by Denis Manturov, the Minister of Industry and Trade, Anatoly Artamonov, the Governor of the Kaluga Region, and Alexander Kuzin, General Director of NovaMedica. The ceremony was attended by Arkady Dvorkovich, Deputy Chairman of the Government of the Russian Federation, and Anatoly Chubais, the Chairman of the Board of RUSNANO Management Company. The SPIC provides for the creation, from the beginning, of a plant for the production of sterile injectable dosage forms in the Kaluga region. As part of its implementation NovaMedica will invest more than 3 bln roubles in the construction of the plant. It is the largest SPIC so far in the Russian pharmaceutical industry in terms of investments.

NovaMedica Enters into the Largest SPIC in the Industry

Left to right: Anatoly Artamonov, Governor of the Kaluga Region, Arkady Dvorkovich, Deputy Chairman of the Government of the Russian Federation, Anatoly Chubais, Chairman of the Board of RUSNANO Management Company, Denis Manturov, Head of the Ministry of Industry and Trade, and Alexander Kuzin, General Director of NovaMedica.
Photo by: Dmitry Ternovoy

NovaMedica’s up-to-date pharmaceutical complex will be built in the Vorsino Industrial park, Kaluga region. A large range of vital drugs of Pfizer—NovaMedica’s strategic partner—will be produced on its sites, as will drugs developed as part of NovaMedica’s own R&D program. The plant will be constructed in full compliance with the strictest international and Russian quality standards, including the European Guidelines on Good Manufacturing Practice (GMP EU). In the future, this will allow NovaMedica to export some of its products to international markets, which is one of the conditions of this SPIC. As part of the investment project, the company will create about 300 high-tech jobs.

Denis Manturov, the Minister of Industry and Trade of the Russian Federation, says: “This is the fifth SPIC in the Russian pharmaceutical industry, in this way we are developing our competencies in a very wide range of therapeutic areas. Unique drugs that have no analogues will be manufactured in Russia, and this will, in effect, make the Russian Federation at least the number two production site in the world.” According to the Minister of Industry and Trade of Russia, the plant will produce socially significant medicines, which are in high demand by Russian clinics. These are injectable medicines for the treatment of cancer, including for children, general anesthetics, hemostatic drugs, drugs for the treatment of inflammatory diseases, and for the treatment of severe bacterial and fungal infections.

“The implementation of NovaMedica’s investment project will significantly increase the availability to Russian patients of modern, effective and safe medicines, most of which are on the list of vital and essential drugs, whose prices are regulated by the state,” the minister concluded.

“The SPIC with NovaMedica is the second special investment contract concluded as part of the Kaluga pharmaceutical cluster project. It is obvious to us that this tool is an effective measure to support investors in implementing promising projects: it demonstrates that regional authorities have a responsible attitude to business partners and strengthens our mutually beneficial cooperation. It is important that, as a result, this will have a positive impact on the localization of innovations in our region, will increase the output of products that are in high demand, generate tax income and also create new jobs, including high-tech jobs,” said Anatoly Artamonov, the Governor of the Kaluga region.

“Our portfolio company NovaMedica not only distributes the drugs of its western partners, but also invests in the development of innovations, having built and opened its own R&D center in Moscow. The next logical step is to create a local, state-of-the-art production facility, where our own drugs and medicines from the range of Pfizer Co.—NovaMedica’s partner—will be produced. It is important that 20% of all biotechnological products manufactured at the plant will be exported, as stipulated by the SPIC,” said Anatoly Chubais, Chairman of the Board of RUSNANO Management Company and the Chairman of the Board of Directors of NovaMedica.

“The Russian state creates effective tools to enable the transfer of foreign pharmaceutical technologies to Russia. With the help of the extensive experience, knowledge and investments of our shareholders and our strategic partner, Pfizer, and thanks to the opportunities that the state provides us with, we are creating a plant that will set new high standards for the local manufacture of foreign pharmaceutical innovations in Russia,” Alexander Kuzin, the General Director of NovaMedica, said.

As reported by the Ministry of Industry and Trade of the Russian Federation, more than 9.3 bln roubles of investments in total have been invested in the Russian pharmaceutical industry under special contracts, including the NovaMedica SPIC.

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 95 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 4 years.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.

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NovaMedica is a modern Russian pharmaceutical company founded in 2012 by Domain Associates LLC, U.S. venture capital firm, and RUSNANO, JSC. NovaMedica’s strategy is aimed at search, registration and localization in Russia of intellectual property rights for innovative pharmaceuticals products and technologies, as well as at development and implementation of own R&D projects.

NovaMedica owns intellectual property rights within Russia and the CIS on 36 innovative developments from the portfolio of the RusnanoMedInvest venture fund. These preparations are for antiviral and anti-inflammatory therapy, treatment of ophthalmic diseases and epilepsy, innovative technologies for detection of oncological and infectious diseases.

Also NovaMedica is working on creation of a number of its own products. R&D department of the company plans to develop about 15 innovative drugs until 2022. These are drugs for treatment of diseases in the field of gastroenterology, pain management, neurology, ophthalmology and rheumatology.

In April 2017, NovaMedica opened the Technological Center “NovaMedica Innotech” that has the latest technological capabilities previously unavailable in the Russian pharmaceutical industry. The company also has a developed infrastructure for promoting and selling pharmaceutical products.

For more information, please visit www.novamedica.com