The planned project will be the first of its kind in Russia implemented under the new legislation on public procurement with suppliers’ reciprocal investment obligations.
On 22 September, the results were announced of a tender to supply medications under which the supplier undertakes to invest in localising pharmaceutical manufacturing in the city.
Biocad CJSC won the right to conclude a unique government contract for a term of 10 years. Under the contract, the city will procure 22 medication brands, mostly oncological agents and immunomodulators. In turn, the investor undertakes, during the first three years, to create capacities for manufacturing, packaging and quality control of medications; for no less than two medications, the investor undertakes to launch end-to-end production, including manufacture of biomaterials.
The principal purpose of the contract is to establish high-tech manufacturing in strict compliance with environmental standards. Long-term procurement of localised products will permit an unprecedented reduction in the price of medications procured. The mechanism is attractive to investors since it guarantees long-term demand for their products.
The newly-established manufacturing unit should meet high environmental safety standards. In addition, the contract stipulates the possibility of replacing currently manufactured and supplied medications with improved analogues.
The tender resulted in a contract worth RUB 14 bn.