"The signed strategic agreement includes the results of months of collaboration between the two companies.

This is an important document that defines all subsequent interactions between us," he said at a press conference held during Open Investments, the international forum for innovative development.

WIN-WIN COLLABORATION

According to Petrov, the major areas of growth and cooperation under the strategic agreement are the joint production of Bayer-branded drugs and medical products, the development and implementation of new drugs as well as marketing and distribution of the manufactured products not only in Russia and the CIS but also on international markets.

An important point, according to the Medsintez representative, is the creation of a full-cycle joint production, where the German party will implement new technologies, thus virtually passing them to the plant.

The validity of the signed agreement is 10 years, with possible prolongation for a longer period. The agreement covers the production of anti-infective and neurological medicines.

The production of the first test product lots is scheduled for 2013.

This fact was also confirmed by Head of Bayer in Russia, Victor Geisler, who added that the agreement will allow not only organizing the production of Bayer-branded drugs but also conducting research work.

"Medsintez has its own molecules, and we can promote them on international markets. The joint distribution will allow to deliver drugs to consumers more effectively," added he.

Geisler also stressed that Medsintez has been chosen as Bayer's strategic partner in Russia for a reason. "We have been looking for a partner like Medsintez for a long time. Bayer did not believe it necessary to build a plant in Russia; finding a partner was a smarter approach," added he.

FINANCING

Meanwhile, the companies did not reveal any amount of investments required for the implementation of the project. "You should understand that this is a joint project, so we share all the required investments in technical and technological modernization. We also provide know-how and invest in R&D," said Geisler.

 Eduard Rossel, Chairman of the Supervisory Board of the Ural Pharmaceutical Cluster, pointed out that, under the agreement, Bayer's participation in financing the joint project is expected.

According to Petrov, one of the first examples of this strategic agreement implementation will be the creation of a joint conceptual project aiming to design a new pharmaceuticals production site at the Medsintez plant, which is "actually under construction".

"The construction has already begun and is funded by Medsintez only. However, we plan to discuss it with Bayer. Our partners first have to see that we, at their request, have managed to provide the first products. After that, it will be possible to come to the negotiating table and start thinking about establishing a joint venture," he added.

The Medsintez plant (Novouralsk, Sverdlovsk Region) is a part of the Yunona medical holding. The company was established in 2003. The plant produces finished forms of genetically engineered human insulin and infusion solutions.

Bayer AG is an international chemical and pharmaceutical corporation, a developer and manufacturer of medicines, plant protection products, high-tech materials and innovative solutions. Bayer's CIS headquarter is located in Moscow. About 1.8 thousand people work in the company's Russian and CIS divisions. In 2010, the Bayer Science and Technology Centre with two labs and a polyurethane-system plant was opened in Noginsk (the Moscow region).