Domestic materials are in high demand by pharmaceutical firms for drug production.
Russia's Ambitious Plan for Domestic Pharmaceutical and Medical Device Production
With a target to enhance self-sufficiency amidst economic sanctions, Russia is set to escalate its domestic production of pharmaceuticals and medical devices over the next six years. Anton Alikhanov, Minister of Industry and Trade, shed light on this during the "Biopharm" forum, stating that the Moscow Endocrine Factory, aided by entities like VEB, is at the forefront of this movement.
The current status shows 77% of essential drugs being locally produced. The aspiration is to elevate this percentage to an impressive 90% over the next six years. In contrast, the target for medical devices is less daunting, with the hope to escalate domestic production from the current 28% to 40% of the internal market within the same timeframe.
Rostec, a significant player in this sector, is adopting corporate development programs to amplify medical device manufacturing until 2030. This ambitious venture aims to quadruple the production of medical devices in just six years, resulting in over 150 distinct types of equipment.
The Russian government is extending financial tools to medtech-related industries, with VEB offering financing for equipment production by Rostec at a reduced 5% interest rate. Rostec's investment in new lines of medical devices, estimated to surpass 10 billion rubles, is set to occur within the medcluster of 4 holdings by 2030.
Rostec's portfolio consists of 27 medical product-producing companies and the holding "Nacimbio", which supplies all key vaccines. More production is on the horizon as Rostec prepares for the addition of another facility. At "Biopharm", Rostec signed documents for constructing a medical equipment factory in the Kaluga region, with an investment volume of 15 billion rubles.
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Strategic Shift towards Technological Sovereignty
This move towards increasing domestic production of pharmaceuticals and medical devices is part of a broader strategy for technological sovereignty and economic independence for Russia. Goals include:
- Innovation and Quality: Developing new drugs and medical devices that adhere to international standards, ensuring they can compete globally in terms of quality and effectiveness.
- Regulatory Compliance: Focusing on clinical trials and regulatory compliance to ensure that Russian-made pharmaceuticals and medical devices meet stringent safety and efficacy standards.
VEB.RF: Key Pillar of Domestic Pharmaceutical Development
VEB.RF plays a crucial role in supporting this sector by providing concessional financing for clinical trials and registration of new drugs internationally. This financial assistance enables local companies to enhance their competitive edge,establishing them as credible players in the global market.
- Amidst their pursuit of economic independence, Russia plans to increase the production of pharma products and medical devices, aiming to locally produce 90% of essential drugs and 40% of medical devices in six years.
- Notably, Rostec, a key player in this sector, is working on corporate development programs to boost medical device manufacturing, intending to quadruple the production and introduce over 150 distinct types of equipment by 2030.
- As part of this plan, the Russian government is offering financial tools to medtech-related industries, with VEB providing reduced-rate financing for Rostec's medical device production, facilitating growth in this health-and-wellness and finance-backed business sector.
