A new venture fund in the field of medical technologies
RVC and R-Pharm have created a new venture fund
RVC together with R-Pharm announced the creation of a venture fund in the field of medical technologies – RusBio Ventures.
The amount of funds under the fund's management at the first closure will amount to 2 billion 70 million rubles. The new fund will be the first major investment partnership established in the Russian Federation with the participation of RVC and a private investor. RVC's investments in the fund will amount to 1 billion rubles, a similar amount will be made by the second anchor investor – the leading Russian private pharmaceutical company R-Pharm, which, in addition to cash, will bring the expertise of its leading scientists and management to the partnership.
RusBio Ventures plans to invest in the creation of innovative world-class technologies, in companies engaged in the development of medical equipment and medical products. In addition, companies developing IT solutions in the field of biomedicine, as well as projects from related industries are considered as objects for investment.
Initially, the fund's portfolio will include 8-10 companies. A significant share in the portfolio will be occupied by early-stage companies, for which the “hands-on-management” approach will be implemented, which means providing comprehensive support to companies at all stages of its development. The Fund also plans to use the practice of syndicated transactions with the world's leading venture funds.
In accordance with the fund's investment strategy, it is assumed that at least 50% of all RusBio Ventures funds will be invested in the territory of the Russian Federation. At the same time, a certain part of the fund's projects will be implemented in global markets, including in order to ensure the full participation of domestic biomedicine in the processes of globalization.
"The trends of recent years in the biomedicine sector are directly related to the convergence of various technologies. As a result of blurring the boundaries between the pharmaceutical, diagnostic, instrumentation and IT industries, the focus of investment will soon be determined not by the type of technology being invested, but by the sectors of its applications," comments Alexey Konov, CEO of RusBio Ventures. "In this regard, the fund's investment focus will be directed to domestic and foreign projects that can meet new market needs."
Today, the Russian market of pharmaceutical and medical products is characterized by a high level of dependence on imported products. Experts believe that such a degree of import dependence threatens the national security of the country. The situation is aggravated by the absence of major players in the domestic market who are able to act as co-investors in financing venture biomedical projects.
"We are building an international pharmaceutical company, so it is extremely interesting for us to consider developments, products and technologies that are currently in the early stages of development or even exist in the form of ideas and first experiments and do not yet fall on the radar of the R-Pharm group. Venture investment together with partners willing to share high risks, in our opinion, is an effective mechanism not only for finding projects for the future portfolio, but also for entering new markets and new partnerships. In this regard, we are happy to respond to the initiative of the RusBio Ventures team of professionals and welcome the strategic partnership with RVC, the leading development institute and the Fund of funds, counting on other investors to join this initiative. In addition to cash, R-Pharm will bring its expertise and market knowledge to the fund, and we hope that together we will be able to create several very successful projects for the Russian and global markets. And, of course, as the president of Business Russia, I am pleased that the fund being created will be the first large Russian partnership established under the new law. This is a small but real step towards deoffshorization of this traditionally offshore business sector," said Alexey Repik, Chairman of the Board of Directors of the R-Pharm Group of Companies.
Thus, the participation of a profile investor in the creation of the RusBio Ventures fund in the person of R-Pharm, the largest player in the Russian pharmaceutical market, including in the public procurement segment, will create a landmark precedent. In addition, R-Pharm's experience and expertise in promoting innovative brands to the market are valuable in terms of supporting future portfolio companies of the fund.
"Today, the Russian venture capital market has a number of distortions: sectoral and sectoral. A significant share of investments in the market goes to IT and Internet projects, only a small share is invested in biotechnology and other promising industries," said Igor Agamirzyan, CEO of RVC. – The launch of a venture fund in the field of biotechnology in the current economic conditions is, first of all, a demonstration of the trust of private investors in the venture investment market, trust in RVC as a professional investment partner and an objective understanding of the possibility of commercialization in the Russian and global market of projects and technologies, including those originating from Russia."
Equally important is the participation of RVC in the creation of the fund as an anchor investor. The company will bring the reputation of the oldest and leading technology investor to the project, create a point of attraction for first-level foreign investors, and provide access to the expertise of the Russian technology market available in RVC in a wide range of industries. In addition, RVC will actively promote the products, technologies and services of the fund's portfolio companies to the Russian and international markets.
About R-Pharm
CJSC R-Pharm is a Russian high–tech pharmaceutical company founded in 2001. The company specializes in the development, research, production, and market launch of a wide range of medicines intended primarily for inpatient and specialized medical care. In 2002, the company began deliveries to Russian clinics and research institutes, and a year later created a network of regional branches. In 2007, it became one of the suppliers under the state program of additional drug provision. In 2009, R-Pharm began licensed production of a number of foreign medicines on the territory of the Russian Federation, built a high-tech production complex in Yaroslavl, acquired shares of OAO Novosibkhimpharm and the production of solid medicines Ortat in the Kostroma region. In January 2011, she founded the research company R-Pharm Overseas, Inc in San Diego, USA. 2012 - the start of construction in Rostov "Pharmoslavl" for the production of active pharmaceutical ingredients of chemical nature. In 2013, the company established a subsidiary in Turkey. In 2014, it acquired a Pfizer plant in Germany and launched operations in the USA and Japan.
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