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Exchange medicine program

Many people start their relationship with Health Care from the drugstores and their specialists. They are the ones to turn to, when you need prescription drugs written in the doctor's language or you have to find "those drops in the red package". The pharmaceutical industry consists not only of the pharmacies and their employees but also of thousands of workers in factories and plants.

Our article talks about what medicine is produced in the capital, what medicine will appear in city drugstores shortly. Also, it specifies what working conditions and terms for the industry development the city is ready to offer to the pharmaceutical sector.

One of the most popular forms of public-private partnership in Moscow is offset contracting.  An investor launches new manufacture or modernizes an existing one, and the city guarantees to buy its products for some years – that is the essence of the contract.

THE FINAL SCOPE OF INVESTMENTS UNDER THE THREE OFFSET PHARMACEUTICAL CONTRACTS WILL AMOUNT TO

9,8

BILLION ROUBLES

CITY IMMUNITY

In 2017, Moscow signed its first offset contract with the pharmaceutical company Biocad. In exchange for the production localization, the city will purchase very vital medicines from the manufacture within seven years: cancer and immunomodulators for a total of 14 billion roubles. In all, 3 billion rubles will be invested in the production, and the company Biocad has already put 2 billion roubles into the construction. In 2020, the first phase of the plant in the area of the Moscow Special Economic Zone (SEZ) was commissioned. And this year the first medicines have already been delivered.

MOSCOW WAS THE FIRST CITY IN THE COUNTRY
TO SIGN OFFSET CONTRACTS

HEART PILLS

The enterprise R-Opra, a part of the R-Pharm Group, will provide the city with medications for the treatment and prevention of endocrine, cancer, and cardiac diseases. The offset contract, signed in the fall of 2018, stated that the company will localize the production of 56 medications in Moscow by the end of 2023, including a biological substance for three drugs.

The investor is going to contribute 5.8 billion roubles to the creation of a new enterprise with 12 production lines. The scope of medicine procurement to the city will be 18,4 billion roubles.

FREE FROM DEPRESSION AND PAIN

This February the third offset pharmaceutical contract was signed with Moscow Endocrine Plant (MEP). The investor will put 1 billion roubles into the project, and within two years it will launch the production of 20 medications: antiglaucoma, antibacterial, analgesic, antidepressants, and neuroleptics. Over a period of eight years, Moscow will obtain these products for 1,1 billion roubles.

FOR INFORMATION

The predictability and transparency of offset contracts can forecast demand for medications and optimize costs.

Artem Barashev,
Director of Moscow City Investment Agency:

"All in all Moscow has signed five offset contracts. The private investment amount under these contracts is 12,9 billion roubles, and the procurement scope is 72,7 billion roubles. In addition to the pharmaceutical industry, offsets have been signed in such sectors as medical devices and food production for urban dairy dispensaries. In the future, Moscow plans to cover such areas as transport engineering, hardware for the housing and utilities sector, and IT equipment".

LOGIC OF MUTUAL ADVANTAGES

All offset contracts enable Moscow to increase the tax base and to save on government procurement. The average price reduction for products supplied for the city needs is 20% compared to the market analogs. Companies involved in such projects can count on additional benefits from the city. The existing support measures include the provision of land plots for production location, reduced taxes and land lease rates, and subsidies on up to half of network connection costs.

THE CITY WILL BUY MEDICATIONS, PRODUCED ON THE THREE ENTERPRISES, FOR

335

BILLION ROUBLES

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