Kevelt, which is based at the Technopol technology park in Tallinn, makes own brand dermatological drugs and provides contract manufacturing services for liquid and semisolid preparations for clinical trials.
These capabilities are key to Pharmaynthez’ expansion efforts according to company chairman Dmitry Genkin, who told Interfax the acquisition will open up direct access to European pharmaceutical markets
Pharmsynthez, which aims to increase its revenue from the RUB271.5m (€6.6m) it recorded in 2010 to RUB403m by 2013, said that it expects Kevelt to be making €8m worth of its Phase II cancer drug Virexxa by 2015.
The Russian drugmaker’s investment in production capacity in Estonia comes just a few weeks after Prime Minister Vladimir Putin set out plans to expand the country’s manufacturing base.
And, while the primary focus of the plan was to encourage investment in Russian manufacturing capacity to cut reliance on international drugmakers, Putin also called on home-grown drug makers to boost exports.
The Kevelt acquisition also fits with comments made by Erik Haavamae, a member of majority Pharmsynthez’ shareholder AS Ephag when the Russian firm first listed on the MICEX Moscow Stock Exchange earlier this year.
He told the Interfax news agency that Pharmsynthez will use the RUB528m it raised though the initial public offering “to expand its sales network, buy bio-pharmaceutical companies abroad, increase production capacity and develop innovative drugs.”