Valenta Pharm bought the rights to the Regidron drug from the Finnish Orion Pharma
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The Finnish Orion Pharma, which is reducing its business in the Russian Federation, has sold part of its assets. Valenta Pharm bought the rights to Regidron, a drug for the treatment of disorders of the gastrointestinal tract, from the company and plans to localize the release of the drug. The drug has a steady demand and does not require large-scale promotion costs, experts say.
Valenta Pharm acquired the rights to the Regidron line of the drug for the treatment of disorders of the gastrointestinal tract from the Finnish Orion Pharma, Kommersant was told in the Russian company.
The transaction included the Regidron brand and the registration certificates Regidron, RegidroStandard and Regidron Bio.
The value of the assets is not disclosed.
As Valenta Pharm notes, Regidron has been present in Russia for more than 30 years, is included in the list of vital and essential medicines, and has “deserved the trust of specialists and consumers.” Valenta Pharm plans to localize production in Russia, and until then the company will continue to import Regidron.
RNC Pharma Development Director Nikolay Bespalov estimates the cost of rights at 240-280 million rubles. According to him, there were actually no examples of such transactions before, and foreigners acquired Russian brands quite often. In the head and Russian offices of Orion Pharma, Kommersant did not respond.
Valenta Pharm has existed since 1997. It produces prescription and over-the-counter drugs in the areas of immunology, virology, gastroenterology, urology, etc. The portfolio includes the brands Ingavirin, Grammidin, Phenotropil, Normomed, etc. In 2020, the company’s revenue was 18.6 billion rubles. , net profit – 5.49 billion rubles, according to SPARK. There are no more recent data. Kirill Syrov, Vladimir Nesteruk, Oleg Kedrovsky, Svyatoslav Petrushko and Dmitry Shulzhenko were named shareholders of the head structure of Valenta Pharm JSC Domestic Medicines in the reporting for 2021.
Orion Pharma has been reducing operations in Russia since the outbreak of hostilities in Ukraine, the company said in a statement. In 2022, the number of local employees significantly decreased, the company continued to supply some “critical” drugs and shipped goods from local warehouses. In 2022, Russia accounted for 3% of the group’s total sales of €1.3 billion. At the end of March 2023, the value of drug stocks in the Russian Federation was estimated at €3.6 million.
The deal between Orion and Valenta Pharm is in line with the Finnish company’s strategy of gradually leaving the Russian market, said Sergey Shulyak, CEO of DSM Group. According to him, Regidron is one of the most popular drugs in its category with a significant market share, and it is logical that Orion decided to bail out some funds from its care by selling the rights to the drug.
It will not be difficult to establish the production of Regidron, and no global efforts are required to promote an already popular brand, the expert added.
Nikolai Bespalov notes that today Regidron is the only representative in Russia of the international generic name “dextrose + potassium chloride + sodium chloride + sodium citrate”, although until 2020 there were other imported analogues.
According to RNC Pharma, in 2022, sales of Regidron increased by 30% in volume terms, to 600,000 packs, and by 80% in distributor prices, to RUB 340 million, year on year. According to Mr. Bespalov, “the drug is in relatively stable demand, is in fact indispensable for certain conditions and diseases, and is probably in every home first aid kit.” For Valenta Pharm, this is a good addition to the portfolio, the expert believes.
According to DSM Group, in January-May 2023 drug sales in pharmacies decreased year-on-year by 8.9% to RUB 706 billion, which may be due to the high base of the first months of 2022. In May, drugs for the digestive tract and metabolism accounted for 18.4% of pharmacy sales in money terms.
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