Aurobindo Pharma Limited and OJSC Diod, a Russian manufacturer of ecological healthcare equipment and nutrition supplements, have established a 50:50 joint venture (JV) – Aurospharma Company – in Russia to manufacture and sell the pharmaceuticals in the markets of Russia, Belarus and Kazakhstan.
The JV intends to construct a plant to manufacture non-penicillin and non-cephalosporin Rx drugs and other drugs that are categorised as over-the-counter (OTC) products in Russia. It has also been contemplated to transfer 100 per cent interest in the CJSC Olifen (engaged in production of pharmaceutical substances) being held by Diod to the JV company, subject to due diligence.
In addition, the JV will source penicillins, cephalo-sporins and few other therapy products manufactured by Aurobindo Pharma in India, to sell in the markets of Russia, Belarus and Kazakhstan, Aurobindo said in a filing to the BSE on Wednesday.
The plant will be constructed in Podolsk district (Moscow region). It is expected that the construction will be completed and the plant will attain its rated capacity closer to the end of 2013. It will focus on production of socially-significant medicinal drugs.
According to Aurobindo, once implemented, the project would bring about substantial savings for the programme of the Russian government procurement of socially-significant medicinal drugs and reduction of applicable budgetary expenses.
