R-Pharm and its Partners Set up a Pharmaceutical Company in Azerbaijan

The pharmaceutical company R-Pharm, Co Ltd. Vita-A and OJSC Azerbaijani Investment Company (AIC, the Ministry of Economics, the Azerbaijani Republic) have entered into a Memorandum of Understanding on arrangement of up-to-date drug production in compliance with the international standards and the companies’ group requirements on the Azerbaijani Republic’s territory. It was signed within the Russian-Azerbaijan Business Forum. The parties undertook a commitment to move forward in arrangement of the project on the territory of Azerbaijan Republic by means of a specially established joint enterprise “Hayat Pharm”.

Co Ltd. Vita-A holds 55% participation interests in the joint enterprise “Hayat Pharm” and R-Pharm holds 45% participation interests in it. Under arrangements after the common project’s business plan is written and approved by founding shareholders,  AIC (Azerbaijani Investment Company) will have 10% Vita-A’s participation interests in “Hayat Pharm” company.

The joint enterprise was founded by the parties in order to fulfill long term programs on building the first pharm complex in Azerbaijan, which will consist of a manufacturing, laboratory and logistics units. One of the projects of the program involves a construction stage to be carried out in partnership with the leading companies that specialize in development of modern enterprises. The construction will involve application of advanced international technological solutions and experience of R-Pharm company. Within the project analytical and technological transfers will take place, local highly qualified jobs will be created in the area of pharmaceutical production. A potential investment volume exceeds 70 million euro. The joint enterprise should start operating at full capacity at the end of 2019.