Virus Vaccines Research, Development and Manufacturing Company

The Company is a virus vaccines research, development and manufacturing organization that intends to develop, patent, produce and market vaccines.

The company projects EUR 37 mln in sales in year three from only one Ukrainian market. Investment required: EUR 7-10 mln. Annualized ROI: 35%. Payback period: 3 years.

The Company is a member of 100 year old corporation, which shares significant part of Ukrainian state market for veterinary and medical products.

Shareholders:
1. Corporation “Ukrzoovetprompostach”. Being affiliated to Corporation gives access to the biggest network of veterinary shops in Ukraine and big advantage in state purchases tenders. Share – 1%
2. General Director of Corporation (see above), aged 60. Higher education. Experience of leading work and organization of production, including veterinary and medical production -35 years. Share – 25%
3. General Director of Company, aged 51. Higher education. Experience of research work and organization of business – 20 years. Share – 25%
4. Leading specialist in area of virology, aged 36. Higher education. Experience of studies in area of virology and biotechnology -15 years. Share – 49%

The supposed stake of investor is 30% shares of the Company.

Assets:
- Bio factory - lease with option to buy-out;
- Commercial rights for veterinary vaccine against avian flu ( H5N1);
- Human vaccine against H5N1, prepared for registration;
- Collection of cultures of viruses for production of vaccines, indicated below;
- Team of specialists-virologists.

Product. Basic types of medical vaccines:
- Flu
- Hepatitis A
- Hepatitis B
- Hydrophobia
Other vaccines against:
- German measles
- Epidemic parotitis
- Measles
- Congo-Crimea hemorrhagic fever
- Fever of Western Nile
- Tick encephalitis
- Japanese encephalitis
- Yellow fever

Market:
Potential markets are Ukraine, CIS countries, Asia and Africa regions. Limited production of viral medical vaccines in the world (for example, world production of flu vaccines is only up to 500 million doses per year) and steady growth of vaccines consumption for 20% a year will allow maximize capacity utilization in two-three years from start up of production.

Year three revenue was calculated on the basis of guaranteed Ukrainian and CIS countries markets only. Viral medical vaccines consumption in Ukraine is 12 million doses per year, in friendly CIS markets consumption of calendar (obligatory) viral vaccines is about 18 million doses per year. Ukrainian market for veterinary vaccines is 15 million doses per year.

For lack of vaccine production, which complies with GMP standards in Ukraine and CIS countries, it is expected to share not less than 35% of indicated markets in year three from the beginning of investment.

Investments: EUR 10 million required for:
- Buy-out the existing bio factory (6 000 sq.m, 6 hectares plot of land);
- Equipment of the laboratory in compliance with GLP standards;
- Equipment of the factory for production of viral vaccines in compliance with GMP standards;
- Modernization of factory facilities

Financial plan:
Average price of medical vaccine is 5 Euros per dose; cost price is 1 Euro per dose.
Average price of veterinary vaccine is 5 Euro per 100 doses; cost price is 1Euro per 100 doses.
Gross income is 52 million Euros; net income is 37 million Euros in year three from only Ukrainian and CIS markets.

Contact us on Merar if you are interested investors.