27 Sep 2017 14:47

Protek to invest at least 3 bln rubles in Lipetsk region drug maker Rafarma over 2-3 yrs

MOSCOW. Sept 27 (Interfax) - Russian pharmaceutical group Protek plans to invest at least 3 billion rubles in the next two-three years to develop the product portfolio at a recent acquisition, antibiotics and anti-cancer drug maker Rafarma from Lipetsk region.

Rafarma's development strategy and the outlook for future cooperation were discussed at a meeting between Lipetsk region Governor Oleg Korolev, PJSC Protek President Vadim Muzyaev and Rafarma General Director Vladimir Ilyushin, the regional administration said in a statement.

Rafarma's development strategy in 2017-2021 targets an increase in the company's product portfolio to 150 name-brand products from 30 currently, and production under contract with major pharmaceuticals using Rafarma capacity. Total drug sales are projected to rise to 4 billion-5 billion rubles by 2021.

In order to achieve these indicators, Rafarma plans to increase the headcount at its production facility to 500 people in the next two-three years from 230 currently and invest an additional 3 billion rubles or more to expand the portfolio (research, equipment, clinical trials, marketing).

Rafarma, located in the Terbuny special economic zone in the Lipetsk region, launched commercial production of medicines in 2014. It is capable of producing 101 million packages of antibiotics and 869,000 packages of anti-cancer drugs per year.

The Protek group includes CV Protek - the largest wholesale distributor of pharmaceutical goods in Russia - four production companies, including Sotex, and the Rigla pharmacy chain. The majority shareholder of PJSC Protek is Vadim Yakunin, who through LLC Protek owns 58.79% of the company and 24.4% directly.

Protek acquired Rafarma in April in a deal that restructured 6.688 billion rubles in debt Rafarma owed to Vnesheconombank (VEB): Protek paid VEB 2.14 billion rubles in cash and issued 4.548 billion rubles in promissory notes (veksels) maturing in 2018-2024.