Fresenius Kabi Ends Russian JV PlanBy
Fresenius Kabi and its partner Sistema JSFC and Zenitco Finance Management LLC have mutually agreed to terminate their joint venture agreement, announced in April 2014, which was to combine Fresinius Kabi’s Russian and Commonwealth of Independent States (CIS) business with the partners’ subsidiary, CISC Binnopharm.
“Changing political and regulatory circumstances in the region have made the closing of the joint venture more challenging than anticipated,” said Fresenius Kabi in a company statement.
Binnopharm is a Russian manufacturer and distributor of intravenous (IV) drugs, infusion solutions, and active pharmaceutical ingredients. Located in the Moscow area, Binnopharm has two manufacturing facilities and more than 350 employees. It had 2013 sales of $104 million.
Under the now terminated joint venture, Fresenius Kabi was to own 51% of the new company and Zenitco, a minority stake. Binnopharm is a subsidiary of Sistema, a large Russian conglomerate.
Fresenius entered the Russian market in 1994 and provides infusion therapies, clinical nutrition, and IV drugs. “The company is committed to further grow its business in the region and is exploring other potential options to cooperate with Binnopharm,” said Fresenius in its statement.
Source: Fresenius Kabi