FinNode Russia 2012 - Future of Russian HealthBio industry
Short description of the topic
Pharma and Biotech are becoming hot topics in Russia. Current world biotech industry volume exceeds $40 bln and Russia makes only 0,2% of it. By 2030 majority (over 80%) of drug substances and over 35% of all chemicals will be produced biotechnologically. Russian pharma and biotech industries have been practically eliminated by the collapse of USSR. Currently, Russia imports overwhelming majority of medicinal drugs and equipment. Even indispensible things like insulin are imported, which put direct threat to country's health safety.
Pharma 2020 (year) technological platform has been developed and accepted by the government to overcome this weekness of Russia. Biotech 2030 is under discussion now. Biomedical technologies (including healthcare, medicinal biology, bioinformatics and industrial biotech) are in the list of top-5 priority areas in innovation development for Russian government.
Currently local pharma industry has very little experience in all stages of modern drug design&development and commercialization. New legislation to promote localization of pharma production in Russia (generics) has been put into force. Cooperation between such newly constructed GLP and GMP-compliant modern poduction facilities (hence overall production culture) and existing universities and R&D centers is seen as crucial to jump from generics to own Russian proprietary drugs in future.
Some Russian territories are proclaimed as future sites for HealthBio production settlement.
Finnish Pharma market $2,5 bln, export - $1 bln.
Russian pharma market potemtial - $66 bln.
Diagnostics have even more potential. Diagnostic costs are only 2% of overall healthcare costs but they influence 70% of diagnisis decisions, and this will grow to almost 100% in nearest future.
Turku (University and Science park) and HealthBio OSKE are interested in internationalization of Finnish healthbio business. A wish to design joint Healthbio platform together with Russians was proclaimed several times. Starting on organized scientific, R&D&I and trials cooperation may help eventual internationalization of Finnish healthbio businesses.
Goal and strategic compliance
Project’s goal: Unveil future needs and trends for Russian HealthBio industry in the next 3-5 years. Identify government-driven and market-driven factors. Package these into potential opportunities for Finnish companies offering. Russians are welcoming international pharma to launch production facilities in the country, describe possible business models that Russians are proposing. Formulate potential background for mutually beneficial Healthbio platform between the two countries.
Compatibility: Turku (University and Science park), HealthBio OSKE. How existing Tekes/Fasie agreement can be used here?
Pharmacluster in S.Petersburg and Biocluster in Tatarstan are developing.
Puschino and Tchernogolovka as leading scientific centers in BioPharma
First of the world's majors, Novartis announced $500 mln factory construction (1,5 mln tablets) in SPB pharmcluster.
Project manager: Olga Makeeva (Finpro). Project team: Anna Kulaeva, Dmitry Makolkin,
Turku (University and Science Park), HealthBio OSKE and SHOK and Tekes people shall be taken to advisory board.
Phase 1. Situation in Finland
•to get clear understanding of the Finnish HealthBio offering and
•to analyze previous experience and current situation with cooperation of Finnish & Russian players
Kick-off with Tekes and other stakeholders (above mentioned + Finnmedi, Turku University, Biotech and Pharma associations, Culminatum)
5-10 interviews with Finish organizations involved into internationalization of bio/pharma companies in Finland
Future learning session
2) Situation in Russia
•to indicate current situation with the development of HealthBio ( mainly bio/pharma) industries in Russia and future trend: 4-5 deep personal interviews in Saint Petersburg (including city government, non-commercial partnership "Medical-Pharmaceutical Projects. XXI Century", local biform companies, i.e. Orion’s partner Farmakor) and 6-7 interviews in Moscow (including a visit to Skolkovo Biomed) + analysis and expert verification of results
•to indicate shortages in legislation and regulations preventing cooperation
•to get clearer understanding of governmental support to HealthBio businesses establishing presence in the Russian market
Methods: Desk study (Olga Makeeva) and Interviews (Sergey Chernega, Anna Kulaeva, Dmitry Makolkin)
Results verification with external experts (external services)
3 internal telcos/meetings
3) Opportunity check:
•to find shortages in R&D infrastructure and technologies, and how do they match with Finnish offering
•on the basis of all the above mentioned, to analyze current and future opportunities for Finnish HealthBio industries in the Russian market, for both cross-border cooperation and establishing presence
Methods: analysis, participation to industrial events – Zdravoohraneniye 2012 (Moscow), Pharma- and Biotechnologies 2013 Conference (Moscow March 2013), IpHEB International Biotech Forum in Saint Petersburg in April 2013
Dissemination event in Finpro in May 2013
Dissemination of project results at Innovation forums in SPB (IpHEB 2013) and Lappeenranta
•September-October 2012: initialization of the project, interviews with main stakeholders and important partners
•November 2012 - January 2013: Market study and interviews
•February: reporting intermediate results to stakeholders
•March-April: finalizing results and making the final report
•May-June 2013: Dissemination
Final report in word & ppt in English, dissemination seminar in Finland + dissemination whenever possible for competent audience , memorandum in Russian on the results of the study for Russian authorities (if the latter will be found necessary by stakeholders).
Finpro St. Petersburg
+7 921 330 3146