The U.S. pharmaceutical company Abbott which owns a 100% stake in Veropharm, and the Vladimir regional administration have signed a memorandum of cooperation.
The agreement was signed on the sidelines of the St. Petersburg international economic forum by Vladimir Region Governor Vladimir Sipyagin and Veropharm General Director Yelena Bushberg.
Under the agreement Veropharm will start making sterile injection solutions in syringes and ampoules, as well as nasal drugs at its production facility in the town of Volginsky.
Veropharm plans to complete the three-year 500 million-ruble investment cycle for expanding production, to launch the production of ampoules and syringes with an annual capacity of 100 million units, and to bring the production of nasal drops to its full annual capacity of 35 million vials by the end of 2019.
The plant in the Vladimir region is Russia’s major supplier of cancer drugs. The Health Ministry has given the Xylene-Neo nasal drops the status of an innovative treatment. We are upbeat about effective cooperation with the Vladimir regional administration and about the opportunity to deliver quality and affordable products to Russian clinics and pharmacies, Bushberg said, according to the regional administration’s press service.
A plant manufacturing nasal drops and sterile injection solutions in syringes and ampoules will be commissioned in the town of Volginsky of the Petushki district in 2019-20, Sipyagin said. New jobs will be created. I’m convinced that our cooperation will further broaden. The regional administration is ready to support and expand this essentially important production facility in this region, he said.
Abbott commissioned a Veropharm plant in the Vladimir region in September 2016. Investment in the project made in 2011-16 amounted to about 7.4 billion rubles. The plant mostly manufactures cancer drugs.
Veropharm is one of Russia’s largest manufacturers of generics, cancer drugs and medical plasters. It was established in 1997 and owns three factories in Belgorod, in Voronezh and in the Vladimir region, mostly making prescription generics.
Abbott acquired a controlling interest in Veropharm in December 2014 from Credit Bank of Moscow’s co-owner Roman Avdeev. The U.S. company subsequently consolidated a 100% stake in Veropharm.