Sanofi and Bayer consider Russian expansion, product launches

Two European drug majors – France-based Sanofi (Euronext: SAN) and German company Bayer (BAY: DE) - have both set out plans to expand in the Russian pharmaceutical market in the coming years.

According to Patrick Aganyan, chief executive of Sanofi Russia, the company plans to increase its share of the Russian insulin market significantly over the next several years. In addition, the company plans to raise production of its cancer, orphan and over-the-counter (OTC) drugs, as well as vaccines, said Mr Aganyan quoted in the local media.

The company aims to accelerate its activities in the Russian market, despite the numerous problems which are associated with doing of business for foreign companies in Russia. One of thee is a lack of long-term planning for public procurement of drugs, which is one of the main reasons for the refusal of global pharmaceutical manufacturers to invest in the production of high-tech drugs in Russia.