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Russia set for more inward pharma investment -AIPM

More global drugmakers will soon announce plans to establish a local presence in Russia in response to government measures to boost its domestic sector and cut dependence on imports, industry group AIPM said on Tuesday.

AIPM, which stands for the Association of International Pharmaceutical Manufacturers, had earlier pledged at least $1 billion in investments in Russian manufacturing, packaging and research and development. [ID:nLDE6570W4]

"We have confirmed our statements by realisation of concrete projects. I assure you that other companies are close to announcing their plans to support local production," Vladimir Shipkov, head of AIPM, told a briefing.

Novartis (NOVN.VX) said in December it would invest $500 million in Russia over the next five years, following other global firms such as Nycomed [NYCMD.UL], Novo Nordisk (NOVOb.CO), and Sanofi-Aventis (SASY.PA). [ID:nLDE6BJ060]

Russian President Dmitry Medvedev has put the pharmaceutical industry at the heart of his plans to diversify the economy away from oil and gas, offering incentives for local production.

Analysts expect the Russian pharmaceutical market to grow by up to 12 percent in 2011, according to industry research group DSM, after 6 percent growth in 2009.

That compares with a 5-7 percent growth forecast for the global pharmaceutical market.
Source:  Reuters

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