European drug giant eyes up Russian stake

Business Materials 19 October 2007 23:17 (UTC +04:00)

One of Russia's largest drug companies may hand a majority stake to a European distributing giant. Celisio has revealed it's in exclusive talks with Russia's Protek Group, in what would be a record industry deal.

Russian pharmaceuticals is one of the world's fastest-growing health markets and it's tipped to expand by 20% annually over the next few years.

In 2006, the Protek Group held a market share of approximately 24%, and saw a turnover of more than $US 2.3 BLN.

Plans for a state distribution centre could be the reason why Russian pharmaceutical companies are looking for foreign investors.

Though Russian companies have fallen behind in the research and manufacture of drugs, they lead in distribution. And the best prescription to keep that lead might just have to be imported. ( RT )