Biopharmaceutical industry as a "new IT" for the Russian stock market
June 11, 2024, St. Petersburg – Participants of the session "Advanced Pharmaceuticals of Russia: unique developments, new technologies and industry leadership" discussed the main trends of the Russian pharmaceutical market at the St. Petersburg International Economic Forum.
The session was attended by Peter Bely, Chairman of the Board of Directors of PJSC Promomed, Sergey Zhdanov, Managing Director and Director of the Center for the Health Industry of Sberbank, Kamila Zarubina, Managing Director of the Center for Biological and Medical Technologies Skolkovo Foundation, Artem Zdunov, Head of the Republic of Mordovia, Ekaterina Priezzheva, Deputy Minister of Industry and Trade of the Russian Federation, Denis Shulakov, First Vice President Gazprombank JSC, and Artur Isaev, Chairman of the Board of Directors of Artgen Biotech.
The session participants discussed the main trends in the Russian pharmaceutical industry, including import independence, increasing export potential and using advanced biotechnological solutions for the production of innovative drugs. According to the approved Pharma-2030 Strategy, these areas are the key ones for the development of the Russian pharmaceutical industry. The speakers noted that one of the main success factors is the close cooperation of pharmaceutical industry manufacturers with government authorities in creating state support measures for businesses to stimulate the development of domestic pharmaceuticals. "The development of new drugs involves massive monetary investments. That is why the creation of original products is not the task of an individual company, but of the entire industry as a whole. When developing new drugs, manufacturers must be sure that these drugs will be introduced into clinical use as soon as possible," said Ekaterina Priezzheva, Deputy Minister of Industry and Trade of the Russian Federation.
Artyom Zdunov, the head of the Republic of Mordovia, also spoke in support of the domestic pharmaceutical industry. He called pharmaceuticals one of the priority areas for the investment attractiveness of the region. In particular, he said, "Pharmaceuticals is of interest to everyone now, because this is really the point of growth of our independence, our sovereignty. Promomed Group is one of the largest investors, employers and taxpayers in the region, and its Biokhimik plant is one of the largest employers of highly qualified personnel at the Ogarev Mordovia State University. Now highly qualified specialists from Moscow and other regions come to work in the republic, namely at the Biokhimik." "Promomed's portfolio includes more than 300 medicinal products, 80% of which are included in the list of vital and essential drugs," emphasised Artyom Zdunov.
The participants also discussed the issue of the investment attractiveness of companies in the Russian pharmaceutical market. Denis Shulakov, First Vice President of Gazprombank JSC, answered in the affirmative to the question of whether the pharmaceutical industry can become a new IT for the Russian financial market. "The entire market of our pharma is 2.6 trillion rubles, the IT market is 2.4 trillion rubles. The pharmaceutical industry is a potential new Klondike. The world's leading pharmaceutical companies (Novo Nordisk, Eli Lilly) are traded at almost the same valuation multipliers as Apple or Microsoft. In other words, the potential of pharmaceutical companies surpasses today's IT market," Denis Shulakov said.
In his speech, Peter Bely, Chairman of the Board of Directors of Promomed PJSC, noted that the main task of the pharmaceutical industry is to develop and produce innovative drugs. "When we make an innovative drug, we immediately get the global market. Or at least we get the very 3 billion people who live in the BRICS countries, because we have our own patent, our development, and our molecule. And we are concentrating our efforts in the fastest growing therapeutic areas with a high need for innovative breakthrough therapies," he said.
Petr Bely noted the importance of the support provided by the government to pharmaceutical companies. He said, "The government has developed a very effective fast-track system, when we do not reduce the volume of clinical trials, but reduce the bureaucratic stage. Thus, we are significantly gaining in the speed of bringing new drugs to the market."
At the same time, Petr Bely noted the great interest in pharmaceutical companies' securities on the stock market. "We must not forget that biopharma and biopharmaceuticals are a multiple growth story. And we are ready to share this growth. We understand that stock market participants are also very interested in this. And we are ready to cooperate effectively with them," the speaker stressed.
About the Company
Promomed Group is a leader in the biopharmaceutical market specializing in the development, production and distribution of innovative medicines. Promomed Group demonstrates steady revenue growth and consistently high profitability, corresponding to the level of relevant public international companies in biopharmaceutical sector.
The Group's growth strategy is based on the diversification of a portfolio of high-tech innovative drugs with significant positions in key market segments such as oncology, endocrinology, neurology and infectious diseases, and a focus on biotechnology, while an integrated business model with full-cycle production allows Promomed to respond effectively and promptly to the current needs of the industry.
The Group relies on its own research center with world-class scientific potential, which facilitates the development and launch of innovative high-tech drugs.
