On May 25, 2018, within the framework of the St. Petersburg International Economic Forum Saint Petersburg and GEROPHARM signed an agreement on implementation of the strategic investment project on construction of the factory manufacturing pharmaceutical substances for innovative medicinal products in Pushkin district.
The agreement was signed by the Governor of St. Petersburg, Georgy Poltavchenko, and GEROPHARM CEO, Pyotr Rodionov.
“Development of production of substances in the Russian Federation is one of the priority tasks set for the pharmaceutical industry by the government. We create highly technological production of medicinal products that can survive competition in global markets and have no analogues in terms of local content within the Russian Federation. GEROPHARM is actively expanding its portfolio of the drugs to treat diabetes in order to provide patients with high-quality Russian medicinal products”, GEROPHARM CEO, Pyotr Rodionov said.
In December 2017 GEROPHARM got the status of strategic investor. The mechanism of strategic investment projects was established by the relevant St. Petersburg law and provides support in different areas. GEROPHARM has a benefit of purchasing a land plot with a reduced cadastral value.
This agreement stipulates the company’s duty to implement the project within fixed time limits at its own expense and using borrowed funds (Fund of Industrial Development, VTB). The agreement provides for GEROPHARM investing 3.26 billion rubles in total into construction of the first and the second lines, create 200 jobs and within the period of 2017–2021 pay taxes in the amount of 746 million rubles into the budget of St. Petersburg.
In 2017 the first line of production of pharmaceutical substances for original products to treat neurological, ophthalmological diseases and menopausal syndrome was launched. The second line of production of insulins is expected to be launched at the end of 2018. Capacity of the line will amount to 1,000 kg of the substance per year that will be sufficient to meet the demand of Russians for insulin completely and expand export opportunities of the company. Finished dosage form will be produced at GEROPHARM production site in Obolensk.
Development of biotechnologies is the priority area of work in GEROPHARM. The company currently develops drugs for treatment of diabetes including insulin products and oral antidiabetic drugs at its own research center in Strelna. The immediate plan of GEROPHARM is to launch the whole line of bio analogues of insulin with different effect at the Russian market. Some of them undergo the stage of clinical trials at the moment.
Own production of insulins will facilitate providing for drug safety of Russia, meeting target indicators of sectoral state import substitution programs and will contribute to social and economic and industrial development of St. Petersburg, create new jobs for highly qualified personnel.