Binnopharm Group buys the rights to antibacterial drugs from the Indian Dr.Reddy’s
Binnopharm Group, a member of Sistema JSFC, has agreed to buy from the Indian company Dr. Reddy’s owns two antibacterial brands – Ciprolet and Levolet – for sale in Russia, Belarus and Uzbekistan. This is stated in the message of Dr. Reddy’s, published on the website of the National Stock Exchange of India. A representative of Binnopharm Group confirmed these plans to Vedomosti. The Russian pharmaceutical holding company will buy the rights to the brands through its subsidiary Alium, the report says. In the future, the production of drugs will be localized at the sites of “Binnopharm Group”, said a representative of the holding, without specifying the timing. During the transition period, Dr. Reddy’s will continue to supply drugs to the company. The amount of the transaction is not disclosed.
Ciprolet is used to treat bacterial infections of the respiratory tract, ENT organs, mouth, kidneys, urinary tract, pelvic organs, etc., according to the instructions to the drug. Levolet is used in the treatment of acute bacterial sinusitis, community-acquired pneumonia and complicated urinary tract infections, including pyelonephritis. The purchased portfolio contains both tablets and infusion solutions, as well as eye drops.
Due to the purchase of Tsiprolet and Levolet, the holding will strengthen its position in the key market for antibiotics for the company, according to Rustem Muratov, CEO of Binnopharm Group. Dr. Reddy’s deal will allow it to abandon the promotion of brands in non-core areas, explained the CEO of the branded markets division (India and emerging markets) of Motupalli Venkata Raman. According to him, the Indian holding will focus on drugs in the following areas: gastroenterology, analgesia, colds and flu, allergology, oncology, neurology, pediatrics and women’s health.
Both drugs, the rights to which Binnopharm Group buys, belong to a large group of antibacterial drugs – fluoroquinolones, Nikolai Bespalov, Development Director of RNC Pharma, told Vedomosti: this is one of the most widely used types of antibiotics. He also notes that the market for ciprofloxacin drugs, which includes Ciprotlet, in 2021 decreased by 5% compared to the previous year, to 1.7 billion rubles. in distributor prices. The negative dynamics is due to the huge increase in demand for the drug in 2020 due to the coronavirus pandemic, the expert explained. According to him, Ciprotlet is the absolute leader in the market of ciprofloxacin drugs with a share of about 46% in monetary terms. Binnopharm Group is buying a fairly strong brand, well known to professional audiences and consumers, Bespalov said. In his opinion, he is able to provide good revenue for a long time.
The market for levofloxacin (Levolet) is larger than ciprofloxacin: in 2021 it amounted to 11 billion rubles. Compared to the previous year, sales fell by a quarter due to the colossal dynamics of 2020, says Bespalov. Levolet ranks sixth among other levofloxacins. According to the expert, in terms of potential sales, this drug is more interesting than Ciprolet.
Binnopharm Group was formed in 2020 as a result of the consolidation of shares in the pharmaceutical assets of Sistema JSFC. It unites five production sites in four regions of Russia: JSC Alium (formerly FP Obolenskoye in the Serpukhov district of the Moscow region), JSC Binnopharm (two sites in Zelenograd and Krasnogorsk), PJSC Sintez (Kurgan), JSC “Biocom” (Stavropol). The company specializes in the production of antibiotics, produces anticoagulants and the Sputnik V vaccine. Among the shareholders of Binnopharm Group are Sistema JSFC (75.3%), VTB Capital (11.2%), RFDI and co-investors (12.5%), as well as individuals (1%). At the end of 2021, the holding opened official offices in the largest CIS countries – Kazakhstan, Belarus, Azerbaijan, Moldova, Armenia and Uzbekistan, Muratov said in an interview with Vedomosti.