OREANDA-NEWS  The management of the German subsidiary of R-Pharma, R—Pharm Germany, has declared bankruptcy. This is reported by the local weekly newspaper Die Zeit.

Markus Froelich became the interim bankruptcy trustee. The main reason for the difficult financial situation of the German pharmaceutical company was the sanctions imposed by the European Union (EU) and retaliatory restrictions imposed by the Russian authorities.

Against this background, R-Pharm Germany has lost many customers and business partners with whom it cooperated before the outbreak of hostilities in Ukraine. The headquarters of R-Pharm Germany is located in Illertissen. Back in 2014, the Russian R-Pharma bought the production site from Pfizer.

During the coronavirus pandemic, the management of this company planned to produce up to 150 million doses of the Sputnik V vaccine and its rheumatoid arthritis drug olokizumab (Artlegia) at the plant annually. Both large-scale projects failed to be implemented in the end.

Last year, Raiffeisenbank demanded almost 30 million euros from R-Pharma. The claim could be related to a loan that a financial institution issued to a German subsidiary of a pharmaceutical company. The funds were issued at interest back in 2021 to establish production of Sputnik V.

Currently, as noted, the German division operates in a limited mode, with a total of about 300 employees. One of the main tasks of the interim manager is to find an investor who could buy out the company and stabilize its financial situation.