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New production facility for APIs to be built in Russia

Active component, one of the largest producers of active pharmaceutical ingredients (APIs) in Russia, plans to increase its production by three times through the investing 2 billion roubles ($34 million) in the building a new facility, that will be located in the city of Pushkino of the St Petersburg region, reports The Pharma Letter’s local correspondent.

Alexander Semenov, president of Active component, said the majority of funds for the project will be provided by Russian banks in the form of loans.

Currently the company produces 35-40 tons of APIs per year. The start of production is scheduled for 2019-2020.

In the meantime, according to analysts at the Russian Ministry of Health, the current market situation really favors manufacturers of substances.

According to a spokesman for Russian Ministry of Health Veronika Skvortsova, thanks to the devaluation of the local currency – the rouble - domestic producers of pharmaceutical ingredients received a serious advantage over European producers in terms of costs.

Still, the majority of producers do not agree with the Minister. According to them the level of profitability of APIs production does not exceed 5%-6%. In addition, one kilogram of produced dry matter accounts for about 30-35 kg of waste of the third and fourth degrees of danger.


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