CDRI

Venture Fund as a engine for development of

pharmaceutical products based on
“suspended” R&D projects

Andrey V. Sosnov, Ph.D., CDRI Deputy Director

phone: +7(495) 225-1192
sva@iihr.ru Andrey.Sosnov@gmail.com

Moscow
December 9th , 2009
 Russian pharma market - an attractive field to increase sales

China

Russia will join the 10 largest Pharma markets by 2015!

 Growth of Drug consumption

Drug consumption increase up to the level of EU countries

will be one of the main drivers of pharma market growth in
nearest years in Russia
$470

$350

$90

Drug consumption per capita

(not including expenses on medicine in hospitals

3
Source: Ministry of Health and Social Development of Russian Federation
 Russian pharma market -
an attractive field to increase R&D
400

300
Number of clinical
trials in Russia
200
372
315
248
100
182
152
93
0

1999 2001 2003 2005 2007 2008

• Number of International clinical trials initiated in Russia

 doubled every 5 years
• High interest in having access to Russian market through expansion of R&D
and manufacturing registered by many major pharma in 2008-2009
RF Government policy –
Import Replacement and Innovations Development
 Goals of Pharma2020

MAIN GOAL - a transition to innovation development model for the Russian

pharmaceutical industry.
KEY MEASURE- a stimulation of domestic Russian pharmaceutical R&D and
Russian-based manufacturing of innovative drugs.

PROJECTED RESULT- an increase of domestically produced

pharmaceuticals market share up to 50% (in value terms) by 2020.

2008
ChemRar’s strategic role in Pharma2020

Business
Science

Government

Associations
 Champions of Integrated External R&D

q Full cycle, World Class R&D

Organization:
 discovery, development,
manufacturing and
commercialization
q Successful 19 year track record of Life
Science
q Seed and Development Phase
Investment Funds
q 250,000 sq. ft built up R&D space
q Strategic Position within Pharma2020
Network

lutions for Drug Discovery & Development

Mergingfor
industrial
Pharma and academic
Biotech Partners
efforts in bringing new approaches to lif
 Proposed Business Model for USA-RF
Partnering

Western Partner with

“suspended” R&D
projects
(at preclinical stage, in PI-II
Commercialization
Worldwide $
clinical trials or
biosimilarity investigation)

Clinical
Trials Cross-Royalties, %
IP Licensing for RF market Results
to a Russian Partner Transfer

Development Production and

Marketing in Russia
$
In Russia

$$$

$ $
Venture Fund VC Commercial Exit
9
(US Funds, ChemRar,
Funds of Russian Venture Company, RusNano, Option for Co-marketing in Russia
Option for Global Development
Grants of Federal Ministries and Agencies) Option for Global Marketing with Royalty for
Project Unit
 Real Business Model: Viriom Ltd. ChemRar –
Roche Tech Transfer Case study

Hoffman La Roche
HIV platform
IND + preclinical
compounds
Sale of WW rights
or manufacturing
WW
$

Roche licensing Clinical Data

to Viriom Ltd Sharing Royalty %
Russian “Virtual Development
Asset Company” milestones

Clinical Manufacturing or
Development
in Russia
sale of
Rights in Russia $
by CDRI and and FSU *
other

$ $ $ $

*FSU - Former Soviet Union States

 Medivation – Pfizer.
Commercialization Case study.
•Researchers from Chernogolovla obtained
Japanese company grant for novel
Alzheimer’s drug discovery
Pfizer acquired Dimebon > $725M
•Screened available Russian drugs in CNS
in vivo models, found antihistamine
Dimebon as active
•Japanese company terminated
development however academic institution
completed the research program and
patented Dimebon for AD treatment
•Licensed rights to US start up Medivation
which raised 1st 15M to develop compound
in clinic in Russia
•Obtained positive Phase II results
increased market cap till over 100M
• Expanded clinical program globally
•In 2008 licensed the program to Pfizer
for $725m ($225 m upfront)
•
 Who will make it?

Venture Fund
Preclinical and clinical
development

Innovation
Drug
USA Pharma or biotech company

Preclinical, pre-IND, phase I,

phase II molecules or biosimilars “stuck” in
pipeline