Rostec State Corporation CEO Sergei Chemezov and Marathon Group investment company President Alexander Vinokurov have agreed to merge their pharmaceutical assets in order to create a federal-level pharmaceuticals producer and supplier. The agreement, signed today in Moscow, is an example of public-private partnership and aims to attract additional technological skills and investment to develop key areas of the domestic pharmaceutical industry.
The joint company will include plants belonging to the Nacimbio holding company (part of Rostec State Corporation) and the Marathon Group's distribution and production assets, particularly the SIA Group, one of Russia's largest distributors. It is planned for Nacimbio to act as the corporate platform, while other major parameters will be defined during the course of appraising the assets and structuring the transaction. The transaction is planned to be completed by year's end.
The new pharmaceutical company's operations will be aimed at further implementing the Rostec State Corporation's strategic policy of ensuring the nation's biosecurity. The joint company will concentrate on developing and manufacturing innovative Russian medications and will serve as a base for creating a national pharmaceutical distributor.
Rostec and Marathon Group already have a history of fruitful cooperation in implementing a number of projects at the Sintez and Fort pharmaceutical plants.
"What we have planned here can be called landmark changes, a logical continuation of our strategy to develop a public-private partnership, in this case in the pharmaceutical industry. Merging our assets will enable our companies to concentrate their efforts on developing and bringing new Russian-made products to the Russian market, and on achieving comprehensive import substitution in critically important healthcare areas. As a result we will create Russia's largest producer and supplier of a whole range of medicinal products. These steps are aimed at further strengthening the nation's biological security and reducing the country's dependence on imported medications and vaccines," Rostec CEO Sergei Chemezov said.
"The Marathon Group is actively expanding its pharmaceutical operations. Growing its assets and extending its partnership with Rostec State Corporation is completely in line with our strategy. We anticipate that our experience and expertise will help us resolve the serious challenge we face," Marathon Group President Alexander Vinokurov said. "We expect the company to reinforce its leading position in its market segment through the synergies of production and distribution, and public and private capital."
Marathon Pharma produces about 350 different types of medications and medical products (most of which are on the List of Vitally Essential and Critical Medications) and is the leading producer of cephalosporin antibiotics and influenza vaccines. For its part, the distributor SIA Group has an extensive logistical infrastructure and a sales network including over 12,000 clients, almost 30,000 product delivery locations, and 39 regional offices from Kaliningrad to Vladivostok.
The Nacimbio holding company, which is part of Rostec, specializes in the manufacture of vaccine, anti-tuberculosis medications, blood products, and viral hepatitis medications.