Biotech Values

[DewDiligence]

Pfizer Goes Prospecting in Russia

[Russia has some serious problems for investors, of course, but such companies as DE (tractors) and HNZ (ketchup) have done very well marketing their products there. In general, I’d rather own companies whose sales in Russia come from these kinds of “non-strategic” items—including pharmaceuticals—rather than natural resources, where eventual expropriation is a likely outcome. (Note that Russia does not belong to the WTO.)]

http://finance.yahoo.com/news/Pfizer-and-ChemRar-High-Tech-bw-3063152338.html?x=0&.v=1

›Pfizer and ChemRar High Tech Center Announce Plans to Explore Innovative Medical Research and Development Partnership in Russia

Collaboration focused on addressing unmet medical needs of patients in cancer, cardiovascular, central nervous system, and other major therapeutic areas that impact the Russian population

Wednesday June 29, 2011, 9:21 am EDT

WASHINGTON--(BUSINESS WIRE)-- Pfizer Inc. (NYSE:PFE) and the Russian pharmaceutical investment and R&D group ChemRar High Tech Center (ChemRar) announced today that they have signed a Memorandum of Understanding (MoU) to explore a collaboration focused on research, development and commercialization of innovative drugs in Russia and other countries. The announcement was made during the BIO International Convention.

The two companies will explore opportunities for accelerated development and commercialization of certain innovative compounds from Pfizer’s pipeline, through technology transfer and out-licensing deals with venture funding. Through this arrangement, Pfizer and ChemRar plan to develop innovative compounds and vaccines to treat patients with cardio-metabolic, infectious and oncology diseases, which are a high priority for the Russian Federation healthcare system.

Under the terms of the MoU, the two companies can further collaborate with other potential partners, including the Moscow Institute of Physics and Technology, the Skolkovo Foundation and other members of the Russian Biopharmaceutical Cluster “Northern,” created under the Federal Target Program of the Ministry of Industry and Trade of the Russian Federation. In addition, the companies can establish a shared-risk platform for several Pfizer R&D programs designed to achieve clinical candidates and proof of concept in the clinic.

“We see Russia as a potential leader in the innovative pharmaceutical, biotechnological and nano-technological areas,” said David Simmons, President and General Manager, Emerging Markets and Established Products, Pfizer. “The Pharma 2020 Strategy driven by the Russian Government creates favorable conditions for transition of the Russian pharmaceutical industry to the innovative development model, and Pfizer is excited to be a part of these new opportunities.”

“Considering the importance of international partnership to our Government’s vision for Russian business, the expertise of leading pharmaceutical companies such as Pfizer is very important. Agreements such as this are critical to developing the applied sciences and university research in Russia, within the global market environment. We hope our partnership will also help create a belt of small innovative businesses within the Biopharm Cluster “Northern” initiative created under the auspices of the Moscow Institute of Physics and Technology and fully supported by the Ministry of Industry and Trade of the Russian Federation,” says Andrey Ivaschenko, Chairman of the Board, ChemRar.

To expedite cooperation Pfizer and ChemRar will create an Expert Committee, which will include specialists with a high level of experience and expertise.

The partnership with ChemRar is an important component of Pfizer’s broader strategy in Russia named “MORE THAN,” which is designed to contribute to the modernization of the national healthcare system, extended life-expectancy, lowered mortality rate and a better quality of life for all Russians. More Than is designed to create value for the Russian people through progressive partnerships aimed at the modernization of the pharmaceutical industry, accelerating the development of medical innovations, and improving access to medicines and better healthcare.

As part of its investment strategy in Russia, in March 2011 Pfizer announced the agreement with Russian biopharmaceutical company Petrovax Pharm to manufacture Pfizer’s innovative pneumococcal vaccine [Prevnar 13] in the Moscow region, as well as the June 2011 launch of the capability building program MORE THAN EDUCATION in partnership with Saint-Petersburg, St. Petersburg State Chemical-Pharmaceutical Academy and the Russian biotechnology company Biocad. Pfizer and its partners look forward to contributing to the creation of medical innovations, further modernization of the Russian pharmaceutical industry, improving the national healthcare system and delivering better health and quality of life to Russian citizens.‹