Sergei Sobyanin: New pharma factory launched in Technopolis Moscow

A new R-Opra pharmaceutical factory has been launched at Alabushevo in the Technopolis Moscow Special Economic Zone (SEZ). The opening ceremony was attended by Denis Manturov, Deputy Prime Minister-Minister of Industry and Trade of the Russian Federation, and Moscow Mayor Sergei Sobyanin.

“Together with the Ministry of Industry, five years ago we set the task of arranging local production of imported drugs in Russia whenever possible so to avoid bringing them from abroad. This is especially relevant of life-saving cancer drugs. And now, in five years, we have already built eight factories by joint efforts. In the coming years, we will build seven more plants. The results are as follows: this year, drug outputs in Moscow have increased by 67.5 per cent, by more than two-thirds,” Sergei Sobyanin said.

Denis Manturov thanked Moscow Mayor for contributing to the industry growth in general and for backing the new project in the capital’s special economic zone. “This is such a joint collaboration between the state represented by the federal government, of course, with your support and with the benefits that are provided to the investor, and the company’s investment itself. I believe that this is the most effective way to minimize risk and costs for entrepreneurs,” said the Minister of Industry and Trade.

According to Mr. Sobyanin, the changes in legislation supported by the Ministry of Industry and Trade boost new plants that are opening one after another under offset contracts. “These are, in fact, our usual purchases, moreover, they are non-competitive. At the start, prices are lower by one and a half to two times. And then we get operating factories and steady supplies,” Moscow Mayor emphasized.

The offset contract for the new pharmaceutical enterprise was signed in 2018 for R-Pharm Group to build a vertically-integrated 30,500 m² production facility in Alabushevo, to produce 26 international generic drugs for treating cancer, autoimmune, asthmatic and other diseases. The Moscow Government guaranteed purchases of the manufactured drugs for seven years.

The construction was completed in the summer of 2023, with the project investment totaling RUB 6.99 billion to ultimately provide employment to 270 people.

Vasily Ignatyev, CEO of R-Pharm, noted that the launch of the first offset plant in the capital was a milestone for the company. “We have taken advantage of the extensive support pool from both the Moscow Government and the Ministry of Industry and Trade, including the subsidized loan rate and the involvement of the Industrial Development Fund. And, of course, the offset contract itself is still the core; it is the backbone, the backbone of the entire project,” said Vasily Ignatyev.

The new enterprise enjoys the status of Technopolis Moscow resident entitling it to significant benefits, including zero rate on property, land and transport taxes, a 10-fold cut in income tax, and the possibility to buy the land plot at a lower price. The company is also granted financial aid from the Moscow Fund for Industry and Entrepreneurship Support, namely, partial compensation for the preferential investment loan rate.

Sergei Sobyanin also visited the Zelenograd — Kryukovo in-city commuter terminal of the third Moscow Central Diameter (MCD-3) to inspect the newly opened terminal building and to have a talk with passengers and Zelenograd residents.

Launched on 17 August, MCD-3, which links Zelenograd and the city of Ramenskoye near Moscow, is a new through route running across the entire capital.

Its launch made the surface metro accessible to more than three million people; transport services have improved in over 20 districts in the capital, while residents of Zelenograd, Khimki, Ramenskoye, Lyubertsy and Zhukovsky can get to central Moscow faster.

The total length of the new MCD-3 Leningradsko-Kazansky surface metro line is 85 kilometers.

Moscow pharma industry

Moscow is Russia’s largest producer of drugs and medicinal products and home to 95 plants employing more than 15,000 people.

In fact, metropolitan pharmaceutical enterprises produce drugs for treating or preventing cancer, cardiovascular diseases, nervous system disorders, diabetes, in addition to painkillers, antibiotics, vaccines, etc.

In the first six months of 2023, the outputs increased by two-thirds compared to January-June 2022.

The industry cluster in the Technopolis Moscow SEZ in Zelenograd and the Pechatniki District has become a backbone of the pharmaceutical industry. Its RUB 41.4 billion investment program encompasses a launch of the production of 128 generic drugs, including 98 that have never been manufactured in Russia. This projects will cover 80 per cent of demand for Russian-made cancer drugs.

“One of Russia’s biggest clusters producing modern medicines is being formed in the SEZ. In five years, with our joint efforts, we have built 8 pharmaceutical enterprises, and there will be 15 of them by 2027. In the first half of 2023, outputs of Moscow pharmaceutical enterprises grew by two-thirds compared to the same period last year,” Moscow Mayor wrote on his Telegram channel.

Source: Sergei Sobyanin’s Telegram channel @mos_sobyanin

The cluster’s main site, known as Alabushevo, accommodates five production facilities to date, with three of the plants already operating; these are:

- PK-137 (Biocad), which produces medicines for treating 11 diseases, including multiple sclerosis, cancer and blood cancer, neurological, rheumatological and rare diseases;

— Velpharm M that has started making drugs to treat multilocular sclerosis, chronic renal disease, respiratory conditions, heart conditions, cancer, etc.;

- R-Opra, which produces drugs against cancer, autoimmune, asthmatic and other diseases.

Two more enterprises are under construction so far. Generium Next, the number-one manufacturer of medicines for rare diseases, and Promomed specializing in antiviral drugs, antibiotics, plus drugs for treating endocrinological, neurological and oncological diseases.

In total, eight production facilities operate at all sites of the pharmaceutical cluster. In addition to those already mentioned, these include:

— Sputnik Technopolis making Sputnik V vaccine and other anti-viral drugs;

— Oncotarget that produces medications to treat neural conditions, cancer and other major disorders;

— Amedart, a producer of drugs that treat cancer, HIV, renal disease and diabetes;

— Rada-Pharma making products that treat cancer, female reproductive system dysfunction and skin conditions;

— Biojet specializing in cancer drugs.

The enterprises have created 2,700 jobs. The number of world-class pharmaceutical production facilities is expected to reach 15 by 2027.

Offset contracts

The Moscow Government’s largest project in medicines import substitution and development of the domestic pharmaceutical industry are offset contracts arranging for local production facilities in exchange for guaranteed supplies to satisfy national needs.

There are seven of such contracts signed for the supply of medicines to date. Pharmaceutical plants that have been built under the offset contracts will produce 109 medicines (international generic drugs), including 79 that would completely replace their imported analogues. The investment under the concluded arrangements amounts to RUB 15.5 billion, with the total purchases for RUB 32 billion.

The first offset contract was signed in 2017 with Biocad, which set local production of drugs for cancer and autoimmune diseases in the Technopolis Moscow SEZ and has already started supplying under the contract.

The second contract was signed in autumn 2018 with R-Opra LLC. The company will supply 49 drugs for treating and preventing endocrine, oncological and cardiological diseases. Its factory has already been put into operation.

The third offset contract was signed in February 2021 for the Moscow Endocrine Plant to build extra production facilities in order to manufacture a wide range of antibiotics, painkillers, antidepressants and neuroleptics. Deliveries of 20 drugs started in April 2023.

In March 2023, the fourth offset contract was signed with Velpharm-M, which is setting a local facility to produce 20 cardioprotective, anti-inflammatory, hypoglycemic and antihistamine drugs at the Alabushevo site of the Technopolis Moscow SEZ. Supplies to Moscow’s medical institutions will begin as soon as in 2025.

The sixth contract, signed in March 2023 with Pharmasyntez, will help to launch the production of seven anticancer drugs in Moscow. The first deliveries are expected in 2026.

The seventh offset contract was awarded to R-Pharm that won the bidding to manufacture five cancer drugs, three blood cancer medicines, two drugs for treating diabetes and cardiovascular diseases, one drug against neurological diseases and one more for the treatment of rheumatological diseases and nonspecific ulcerative colitis. The first deliveries to the city’s medical institutions will kick off in 2026.

Technopolis Moscow SEZ

The Technopolis Moscow Special Economic Zone is an area enjoying a special legal status and offering preferential business arrangements to investors. Established in 2006, it began to grow intensively after the project was transferred under the charge of the Moscow Government in 2016.

Its residents are relieved of property, transport and land taxes and enjoy the income tax rate of 2 per cent, in addition to free customs zone arrangements and preferential land lease. After a facility is complete, the investor may choose to buy the leased land plot for trifle 1 per cent of its register value.

It is currently home to over 200 high-tech enterprises, including more than 90 with a resident status. The six sites (Pechatniki, Alabushevo, Micron, MIET, Angstrem, and Rudnevo) covering more than 260 hectares accommodate high-tech companies, which have created over 15,500 new jobs. Their accumulated investment exceeds RUB 140 billion.

In 2022, the SEZ got three high-tech clusters, such as pharmaceutical, electric vehicle, photonics & microelectronics, and a federal center for unmanned aerial systems.

The photonics & microelectronics cluster embraces more than 50 major companies, 20 of them are residents and lessees at the Technopolis Moscow SEZ. One of its key projects is the creation, production and implementation of photonic integrated circuits, and they are also creating a R&D center to produce masking plates.

In addition, there are a number of large-scale investment projects (LSIPs) to create plants in Zelenograd to manufacture building materials, measuring instruments, microelectronics and other products, offering more than 3,000 jobs. Now the capital is building enterprises with a total area of 661,300 square meters, including more than 307,600 square meters of production space to be ensured under LSIPs.