RCIF and AFK Sistema invest 19 billion rubles in ‘Obolenskoye’ pharma holding

| By | Binnopharm, Investments, Pharmaceutical Deal

The Russia-China Investment Fund (RCIF), founded by the Russian Direct Investment Fund and the Chinese Investment Corporation China Investment Corporation, and AFK Sistema have agreed to establish a leading pharmaceutical company in Russia with a total investment of over 19 billion rubles.

The project was announced during the visit of Russian Prime Minister Dmitry Medvedev to Beijing (China).

Kirill Dmitriev, Head of the Russian Direct Investment Fund (RDIF), said:

“We also wanted to announce the investment of RCIF together with Sistema in the pharmaceutical holding Obolenskoye. The total investment in the project will amount to more than 19 billion rubles, and we will actively develop this pharmaceutical holding. And we see that Chinese investors are not only investing in infrastructure, but also in such high-tech projects as pharma.”

RCIF and AFK Sistema are investing in JSC PE “Obolenskoye” and merging it with JSC Binnopharm. According to the RDIF, it will be a combination of large production facilities with a large portfolio of products, meaning the creation of a leading Russian pharmaceutical company.

JSC PE “Obolenskoye” was founded based on the State Research Center for Applied Microbiology in 1994. In 2013, the company became part of the Alvansa Group holding, whose shareholders are Gazprombank and UFG Private Equity. According to analysts, the consortium could then have paid $20-25 million for this asset.