Over the past five years, very few licensing agreements for innovator drugs have involved Russian biopharmaceutical companies where the majority involve drugs that are marketed, says GlobalData. The leading data and analytics company notes that these licensing agreements include the commercialization, manufacturing, and/or distribution of innovator drugs involving Russian biopharmaceutical companies from 2017 to 2021. Leading biopharmaceutical companies co-signed a letter requesting others to suspend further business collaborations with Russian companies following Russia’s invasion of Ukraine. Hence, if these licensing agreements are terminated, the loss in revenue for the non-Russian biopharmaceutical sponsors of those innovator drugs may be minimal.

Mariam Shwea, MPH, Business Fundamentals Analyst at GlobalData, comments: “According to GlobalData’s Pharma Intelligence Center Deals Database, 70% of marketed innovator drugs were involved in licensing agreements with Russian companies, with infectious disease being the top therapy area.”

German-based Bayer, which signed an agreement with NovaMedica, receiving an exclusive license for the manufacturing of Reliefipin, a treatment of proctologic diseases, in Russia, was one of the first to suspend non-essential business in the country while maintaining the supply of essential medicines to Russia.

Huons Global, which has its headquarters in South Korea, followed suit and terminated the manufacturing deal of Russia’s single-dose COVID-19 Vaccine, Sputnik Light. Although the sanctions do not apply to the supply of essential medicines to Russia, biopharmaceutical companies may become cautious about entering any licensing agreements with or receiving any capital from Russia as a result of the ongoing invasion of Ukraine.

Shwea concludes: “Although the long-term implications of the Western sanctions imposed on Russia are still unclear, the potential termination of licensing agreement deals involving Russian biopharmaceutical companies may only result in a limited loss in revenue generated from the commercialization of these innovative drugs in Russia.”