Rusnano intends to bring the next generation of diagnostics to Russia. The government-backed investment firm has signed a letter of intent for an investment in the French diagnostics developer Magnisense to enable it to establish a manufacturing facility in Russia for the Russian market and for export.

Rusnano will invest up to $37.5 million over a three-year period in the joint project, which is expected to cost approximately $58.3 million. Magnisense’s existing shareholders and new investors will put up the remainder of the funding.

Magnisense makes next-generation in vitro bioassays for diagnostic testing for use in healthcare, veterinary medicine, food safety, and environmental protection.

The Russian project will manufacture an advanced diagnostic system based on Magnisense’s proprietary technology, a magnetic immunoassay in which nano-sized magnetic beads are attached to an antibody that selectively binds target molecules, micro-organisms, or other antibodies in test media. The technology combines the accuracy of laboratory testing with the simplicity and compactness of rapid-test methods to provide fast and reliable results. Environmental factors don’t interfere with the magnetic signals, so readings and detection are more sensitive.

Magnisense’s Russian manufacturing facility, which will include an R&D center, is expected to open in 2015 with capacity to produce 3.5 million tests. Magnisense is also developing two rapid test formats for point-of-care diagnostics.

Merck in Brazil

Merck expanded into Brazil with a new joint venture that will market and sell both innovative drugs and branded generics in Brazil. Supera Farma Laboratorios, a Brazilian pharmaceutical company co-owned by Cristália and Eurofarma, is its partner in the new venture.

“This joint venture is a combination of Cristaliá’s creativity, Eurofarma’s commercial efficiency, and Merck’s innovation,” says Ogari Pacheco, president of Cristália.

For Merck, the deal gives it wider access to a strong Brazilian distribution network. Eurofarma and Cristália will benefit from access to Merck’s innovative medicines and vaccines.

“This venture is an important step forward in our strategy to grow our business in key markets and improve global access to our medicines and vaccines,” says Kenneth Frazier, Merck’s chairman and CEO.

By establishing the joint venture with Supera, Merck will gain additional local expertise, an expanded portfolio of products, and a strong distribution network to facilitate wider access to medicines for the people of Brazil. The initial portfolio of the joint venture will include approximately 30 products across a range of therapeutic areas. It will have its own dedicated salesforce separate from Merck, Cristália, and Europharma, but will leverage the parent companies’ infrastructures for activities such as salesforce training. The parent companies will continue to maintain separate businesses in Brazil.

Merck, through a subsidiary, will own 51 percent of the joint venture, and Cristália and Eurofarma will collectively own 49 percent. The venture will be managed jointly by all three companies and is expected to be up and running before the end of 2012.