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Novartis launched construction of a new pharmaceutical manufacturing facility in St Petersburg, Russia, in June 2011. The new facility was constructed in the Novoorlovskaya Special Economic Zone (SEZ), located to the north of the St Petersburg city centre. The plant was opened in June 2015.
The new facility produces high-quality generics and innovative pharmaceuticals for Russian patients. The total investment on the project is estimated at $140m.
Novartis’ investment in Russian pharmaceuticals
Novartis decided to access the Russian pharmaceutical market by setting up a manufacturing plant in St Petersburg. The new project is part of the company’s five-year $500m investment plan, which was announced in December 2010.
The company spent approximately $140m for the construction of the plant and used the rest of the amount for setting up plant equipment and infrastructure. Novartis use the investment to develop in three core areas of the Russia pharmaceutical market, namely local manufacturing, R&D collaborations and public health development.
Pharmaceutical manufacturing facility in St Petersburg
The new manufacturing facility was built in a land allocated to the company in the Novoorlovskaya SEZ. Spread over 110.4ha in the Primorsky district, the SEZ is meant to foster product innovation in science and technology.
The new facility is expected to produce approximately 1.5 billion units in a year. It utilises local workforce and employs about 350 qualified professionals. It focuses on producing high revenue-generating drugs, as well as drugs for state purchases.
The facility features sophisticated manufacturing equipment and technologies for producing innovative drugs and high-quality braded generics.
Drugs produced at the new Novartis facility in Russia
The new Russian facility mainly produces drugs for the treatment of hypertension and cardiovascular diseases. The generics manufactured at the facility include Ketonal, Biol, Fleksid and Persia. The innovative drugs portfolio includes Gielen, Afinitor and Sertikan.
The plant also produces drugs related to neurology, transplantology, endocrinology, oncology and anti-infectives.
Construction of the new manufacturing facility in St Petersburg
Novartis broke ground for the construction of the new manufacturing plant in St Petersburg in June 2011. The construction permit was obtained in March 2012. Construction of the main building and engineering building was completed by early-2015.
The installation of equipment was completed before the commissioning in June 2015.
Russian pharmaceutical market
The pharmaceutical market in Russia has been growing at a rapid pace, as the demand for branded generics in the country has been on the rise. The Russian pharmaceutical market size in 2014 was $20.27bn, and the total value of the pharmaceutical market in Russia is expected to reach $35bn by 2020.
Novartis headquarters and marketing commentary
Takeda Pharmaceutical completed construction of a new manufacturing facility at Yaroslavl in Russia in September 2012. The new plant is located 280km away from Russia’s capital city Moscow.
Novartis is a leading pharmaceutical company headquartered at Basel, Switzerland. The company’s healthcare products include innovative medicines, cost-saving generic pharmaceuticals, eye care, consumer health products, preventive vaccines and diagnostic tools. Its pharmaceutical products include more than 40 vital drugs. The company has an operational presence in 140 countries.
In June 2012, Novartis entered into an agreement with the Saint Petersburg Chemical and Pharmaceutical Academy (SPCPA). The scope of the agreement includes creation of a joint action plan on the development of scientific partnership and modernisation of the system of training scientific, medical and pharmaceutical personnel.
The SPCPA also helps Novartis in designing new medical products on the basis of the St Petersburg pharmaceutical cluster.
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