The Russian government will provide 40 billion roubles for the modernisation of seven leading medical institutes until 2014.

As of 2007, only one out of every five drugs purchased in Russia was produced domestically, and only one of the top 20 producers of drugs sold domestically was a Russian firm.

Sandoz, the world's second largest generic medicine company, is still mulling its options for owning a plant in Russia, company chief Jeff George said in an interview.

Dependence on imports, and the backward state of the industry, have led President Dmitry Medvedev to declare the modernization of the pharmaceutical industry a national priority and one of the five key priority areas for modernization.

Minister of Health and Social Development Tatyana Golikova and German Health Minister Philipp Roesler concluded an agreement on cooperation in public health.