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EMERGING MARKETS

AstraZeneca Finding Its Footing in Russia

Research and manufacturing investments grow to match opportunities.

MICHAEL FITZHUGH

The Burrill Report

“Clinical development here is a very important part of the research base that we’re involved in.”

AstraZeneca is establishing a new Predictive Science Center in Russia where it plans to leverage regional scientific talent to build software and systems for better predicting the safety and efficacy of potential new medicines.

The center is AstraZeneca’s most significant research and development investment in Russia to date and represents the company’s expectations for the industry’s future growth in Russia, company CEO, David Brennan said during a speech at the St. Petersburg International Economic Forum.

Russia is the third largest contributor to overall clinical trial participation globally behind the United States and Japan, noted Brennan. “Clinical development here is a very important part of the research base that we’re involved in,” he said.

Russia is also one of the very few countries where AstraZeneca is increasing its R&D investment because of the public health challenges the country faces, Brennan said.

Life expectancy for men in Russia is 63 years of age, 12 years less than Russian women, as compared to 78 for men and 83 for women in the United Kingdom, where AstraZeneca has its London headquarters. Heart disease is the number one cause of morbidity and mortality in Russia, accounting for 61 percent of deaths, according to Brennan. Premature deaths alone from heart disease, stroke, and diabetes are estimated to be an $11 billion drain on the overall Russian economy, he said.

Currently, AstraZeneca employs about 1,000 people in Russia in 68 cities and anticipates increasing that number to about 1,500 during the next three or four years. Earlier this year, the company began construction of a new $150 million manufacturing facility in the Kaluga region to supply Russia with locally manufactured AstraZeneca medicines. By 2016 the company expects nearly three quarters of its products sold in Russia to be manufactured there.

In addition, AstraZeneca has established several partnerships with Russian development institutes, including the Skolkovo Innovation Centre and Russia Venture Company, to share its global R&D expertise through research collaborations, grant programs, and clinical trials.

Russia’s government is moving to modernize and develop the country's pharmaceutical sector as the country grows closer to becoming a member of the World Trade Organization, a credential that could soon give other international investors the confidence to join AstraZeneca in investing in the region.


June 17, 2011
http://www.burrillreport.com/article-astrazeneca_finding_its_footing_in_russia.html

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