AstraZeneca to invest $150m in Russian plant

AstraZeneca is to invest more than $150 million in building a Russian plant, joining rivals looking to sidestep tougher rules on imported medicines as Russia drives to support domestic industry.

Construction will begin in the Kaluga region southwest of Moscow in April this year and the plant is scheduled to launch production of cancer, heart, and other drugs in the spring of 2013.

The underserved Russian market is set to outpace developed peers as its middle class grows and the government boosts spending on public health, while also tightening legislation to rein in prices and raise the share of locally produced drugs.

Novartis said in December it would invest $500 million in Russia over the next five years, following other global firms including Nycomed, Novo Nordisk and Sanofi-Aventis.

“In addition to the localisation of production, the company intends to invest in research and development,” said Nenad Pavletic, AstraZeneca’s general manager for Russia.

“The decision about such big and long-term investment projects reflects our confidence in the great potential of the Russian market as its economy develops steadily,”.

AstraZeneca noted that in providing medication for major social health conditions, including oncological, cardiological, gastroenterological, psychiatric and repertory conditions, it would be the first major global pharmaceutical player to commence a full production cycle in Russia.