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Binnopharm may become leading player in Russian OTC drugs market

Russian drugmaker Binnopharm, which is owned by the local financial conglomerate AFK Systema, may become a leading player in the Russian market of over-the-counter (OTC) drugs in the coming years, reports The Pharma Letter’s local correspondent.

This is the expected result of Binnopharma’s acquisition of its local competitor Alpharm, a company whose portfolio of drugs includes an antiviral Kipferon drug, as well as Prostopin, a drug which is used in the treatment of hemorrhoids and prostatitis.

Kipferon currently remains the fourth largest interferon-based immunomodulator in terms of sales in the market segment, the value of which is estimated at about 3 billion roubles (~$47 million).

In 2015, 832,988 packages of Kipferon sold in Russia. At the same time in the case of Prostopin, to date, sales of the drug, have been low, however there is a possibility that they may significantly increase in the coming years, as the demand for the drug has increased in recent years.

The value of the deal is not disclosed, while its final completion is expected to be in the coming weeks.

In the meantime, in addition to the Alpharm deal, last month Binnopharm signed an agreement with the German Medice company for the exclusive sales of four of its drugs in Russia. The deal resulted in the expansion of distribution portfolio of Binnopharm up to 14 drugs.

It is planned that the deals with Alpharm and Medice will allow Binnopharm to expand in the Russian market for OTC drugs, which currently accounts for 37% of the overall Russian pharmaceutical market in value terms and 57% in volume.

At the heart of Binnopharm strategy that was recently approved by AFK Systema, is the idea of the production of so-called "friendly" drugs – the drugs which should have additional benefits and convenience for patients (long-acting dosage forms, new administration routes, new combinations of active materials, etc). That will allow patients to take the drug less frequently and to avoid complex treatment regimens and simultaneous consumption of multiple drugs.


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