Abbott Laboratories Chairman and CEO Miles White said that despite soaring inflation and a crashing exchange rate, the company will continue business in Venezuela hit by weak oil prices and political turmoil--and that goes for emerging markets generally.
AstraZeneca and Novo Nordisk both opened plants in Russia last year, assuring their spot in that emerging market where authorities are suggesting foreign drugmakers establish some kind of local production if they want to sell into the market. Now Big Pharma's biggest player, Pfizer, is reportedly looking to a Russian partner to get meds produced there.
A new report from Assocham and TechSci says India's giant pharma industry is set to get even bigger and may be worth $55 billion by 2020, up from its current $18 billion. The report said that growth will occur despite a slowdown in exports due to tougher regulations in markets like the United States, Africa and Russia, the report noted, according to the Economic Times of India.
While recent economic instability has deterred some pharma plans in Russia, Germany's Bionorica, a herbal-drug producer, says it's unphased and will expand with a new plant there.
Russia has a lot of purchasing muscle, but few local producers when it comes to pharmaceuticals, and so officials have cooked up a plan to lure more foreign pharma partners. The government will boost its spending on locally made drugs, hoping to inspire Big Pharma to set up production in the country.
Russia has a lot of purchasing muscle, but few sellers when it comes to pharmaceuticals, so the government has a plan to lure them with a vast increase in the products it buys from local makers. The nation's officials are focusing on the foreign drugmakers to set up production plants in Russia as one way to emerge from a string of recessions.
AstraZeneca has laid out a host of new manufacturing projects in recent months, including new biologics plants in Europe and the U.S. But while those projects are in the works, it has a new tablet plant in Russia that has just gone online.
U.S.-based Abbott Laboratories is among a number of companies that hope to leverage acquisitions in Russia into exports, with other players such as India's Lupin among other potential firms to look to ship wider abroad.
Orthopedics player Smith & Nephew is rounding out its presence in emerging markets with the acquisition of the trauma and orthopedics business as well as a manufacturing company of the DeOst Group. The Russian company manufactures medical devices and has also served as Smith & Nephew's product distributor in the region since 2009.
Lupin Pharmaceuticals has made no secret of its intention to grow through acquisitions at home and abroad and last week announced it would make a major buy of Russian generic drug maker ZAO Biocom, placing it in a turbulent but fast-growing market.