ICN To Build Russian Drug Plant And R&D Centers

US group ICN Pharmaceuticals is to invest $180 million in the construction of a pharmaceutical plant in St Petersburg and three R&D centers in Russia and eastern Europe, according to the group's president, Milan Panic.

Work on the plant will start in 1996, and the first $40 million phase will be up and running by the end of that year. The plant will produce $470 million worth of pharmaceutical products, 80% of which will be sold in Russia and at far lower prices than their American equivalents, he said.

Foreign currency earnings will be used to expand production. Mr Panic noted that Russia is one of the world's largest markets, consuming about $5 billion worth of pharmaceuticals each year. A joint venture has been set up with St Petersburg's older drugmaker, Oktyabr, to build the plant; ICN has bought a 75% stake in Oktyabr (Marketletter June 12).