RDIF and Geropharm launch first production site financed without foreign co-investors
Moscow, November 16, 2018 - The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, has announced the launch of the first production site under its Investment Lift program, which supports high-tech small and medium-sized business projects related to non-primary exports. The launch of the Geropharm’s insulin production complex in St Petersburg took place today.
The fund made an investment in Geropharm in October 2016 as part of its strategy to promote import substitution and improve quality of life in Russia. Geropharm is the only Russian manufacturer of full-cycle insulin and, taking into account its running capacity, is able to meet 100% of Russia's insulin requirements. Thus, the launch of the complex will contribute significantly to ensuring a secure supply of pharmaceuticals in Russia and will allow the business to begin to export.
Under the terms set by RDIF’s Supervisory Board, investments using the Investment Lift mechanism can be made without foreign co-financing. Geropharm is the first project to receive investments from RDIF under this program. During a visit to the production site by members of a committee chaired by Russian President Vladimir Putin, RDIF’s Investment Lift mechanism and the new Geropharm complex were highly commended for their role in improving the efficiency of the country’s drug supply system.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“Geropharm was the first project to receive funding from RDIF under the Investment Lift program which enables investment without the participation of foreign co-investors. It is also the first initiative to have developed production facilities from funding received from the Investment Lift mechanism. The company will now be able to supply 100% of Russia's insulin requirements and begin to export. Furthermore, thanks to RDIF and Geropharm’s network of partners, the company will be able to open similar production facilities in the Middle East, including potential facilities in Saudi Arabia and the UAE. We are ready to use this experience for the further development of Geropharm and other Russian companies.”
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru
GEROPHARM was founded in in 2001. The group is engaged in the development and production of high-quality innovative Russian medicines, investing in technological development and the development of modern pharmaceutical infrastructure. Under the “Pharma-2020” federal state program, the company receives support from the government to focus on substituting imports of socially important drugs. Further information can be found at http://www.geropharm.ru
The Investment Lift mechanism was launched in April 2016 to support high-tech projects by small- and medium-sized enterprises (SME) involving non-resource exports. It envisages the involvement of leading development institutions (the Russian Small and Medium Business Corporation, RDIF, the Industrial Development Fund and the Russian Export Center Group (REC, EXIAR and Roseximbank)) in activities to provide financial support to SME during various stages of their life cycles. As part of the Investment Lift mechanism, SME can count both on financial (equity and debt financing, provision of guarantees, export lending and insurance) as well as administrative and consulting support for projects, including when promoting companies and their products on targeted international markets.
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Leach / Maria Shiryaevskaya
Tel: +44 (0) 20 7796 4133