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BNS − The Russian pharmaceutical company Pharmsynthez controlled by an Estonian company has acquired the Estonian pharmaceuticals producer Kevelt that expects to produce close to eight million euros' worth of a new cancer drug, Virexxa, for the European Union market in 2015.

Pharmsynthez produces medicines and active pharmaceutical ingredients in one of Russia's most modern research and production facilities built in cooperation with St. Petersburg researchers and the German technology group Linde AG which meets EU requirements, Erik Haavamae, member of the board of the holding company AS Ephag that controls the Russian company, told BNS. Its product portfolio at present includes well-known brands like Sehydrin, Neovir, Pencrofton and Fenazid used in oncology and gynecology and treatment of immunodeficiencies and tuberculosis.

"Pharmsynthez sees in the Estonian drug maker Kevelt an opportunity to expand to foreign markets," Haavamae said. The largest private shareholder and chairman of the board of directors of Pharmsynthez, Dmitry Genkin, told Russian news agency Interfax last week that the acquisition of Kevelt will open up direct access to European pharmaceutical markets adding that the transaction fully corresponds to Pharmsynthez's development strategy. Interfax said the production of the drug Virexxa will take place at Kevelt based at the Tallinn technology park Tehnopol.

Chemists Nigulas Samel and Ivar Jarving have for years been the driving force behind Kevelt that started manufacturing pharmaceuticals in 1996. Haavamae said the pair will remain at the helm also under Pharmsynthez. Kevelt produces at present preparations such as Prostenoon Gel for inducing labor, the glaucoma drug Glaumax, pure biochemicals for research, and freezing solutions and systems of stem and cord blood cells.

Last fall Pharmsynthez had its shares listed on the MICEX exchange in Moscow, raising 528 million roubles in the initial offering which Haavamae said it intends to use to expand its sales network, buy bio-pharmaceutical companies abroad, increase production capacity and develop innovative drugs.

The company has seven novel pharmaceuticals in the pipeline of which Virexxa is one of the most promising in terms of sales after the multiple sclerosis drug MyeloXEN. Virexxa, which is at present in the second phase of clinical trials, is expected to generate sales of 207 million roubles on the EU market in 2015. Haavamae said Virexxa has been categorized as an Orphan Drug which makes for a more cost-effective phase of clinical trials and allows the medication to be registered on different markets.

Pharmsynthez expects its sales to increase to 350 million roubles by 2012 and reach 405 million roubles by 2013. Last year it probably surpassed sales and profit forecasts which were 271.6 million roubles and 28 million roubles, respectively. In 2009 the company's sales were 228.4 million roubles, up by 15.7 percent year-on-year.

Kevelt meanwhile saw sales nearly triple to 15.7 million kroons (EUR 1 mln) in 2009 compared to 2008 and its profit was slightly below one million kroons.

Ephag owns 69.3 percent of Pharmsynthez. The holding company in turn is 75 percent owned by Amber Trust II, a fund set up to invest in the Baltic states and Russia that manages assets worth 150 million euros.

ERR - Estonia's first orbital satellite will likely blast off next year from India. The satellite developed by a group of Tartu and Tallinn students is to test a solar sail invented by Helsinki University professor Pekka Janhunen, ETV reported.

Mart Noorma, a teacher at the University of Tartu, says the best offer for launching the satellite has come from India. The launching would cost 60,000 euros, said Noorma.

The satellite weighs one kilogram to save on the volume - the biggest limit on cost.

ERR - Enterprise Estonia has joined the European Union's new grant program for companies looking for financial aid for developing technology or products. The international round of Lead ERA opened this week will provide an estimated 11 million euros in funding.

Enterprise Estonia Innovation Division director Ilmar Pralla says Lead ERA was established to implement the European Union's demand-based innovation policy.

"Based on studies and analyses, the European Union is looking for new, innovative products and services from precisely these six areas," he said - e-health, intelligent textiles, sustainable construction, recovery of waste, bioproducts and renewable energy." As Estonian companies have thus far been quite successful in applying for innovative assistance from international cooperation networks, it is completely realistic that they will obtain support funds from Lead ERA as well.”

Read more: http://news.err.ee/economy/0b107949-4ff3-43af-a332-7a1fd59e0965

BNS – Note AB, a Swedish listed company producing electronic components, will focus its European production in Estonia's Parnu, closing its facility in Lithuania and selling another in Krakow, Poland, the business daily Aripaev reported.

"We have been the biggest factory of Note Group already since 2007 and this will remain so also in the future," board chairman of Note Parnu OU Tarmo Luhaaar said.

Closure of the Lithuanian factory will bring new projects for the Parnu factory and the CEO found that the present situation promised more of them in the future.

Luhaaar said that last year was the most successful of all times for Note Parnu. At least as good results are being expected from this year.

As the Parnu factory is a mass production unit in the Note Group, then the fate of the company will largely depend on decisions made  in the mother company.

BNS – A business delegation of the Estonian Chamber for Trade and Industry is accompanying the state visit of Estonian President Toomas Hendrik Ilves to Sweden from Tuesday until Thursday.

The Estonian president will meet during the visit with Chairman of the Swedish Parliament Per Westerberg, Prime Minister Frederik Reinfeld, other senior officials and leading Swedish businessmen. The business delegation will take part in an Estonian-Swedish business seminar that will be opened by Ilves, the Chamber of Trade and Industry said. There will also be visits to the Swedish National grid and Ericsson.

Among others, Board Chairman of the Chamber for Industry Toomas Luman  and Director Siim Raie, CEO of Nordea Bank Vahur Kraft, Chairman of the Supervisory Board of Olympic Entertainment Group Ltd Armin Karu, CEO of Swedbank Priit Perens, CEO of SEB Bank Riho Unt, CEO of garments maker Meelis Milder, CEO of Eesti Energia Sandor Liives and Raivo Vare from the Estonian Development Fund are in the composition of the business delegation.

Please read our special supplement in Helsinki Times here.

For more information please contact our representative in Helsinki, Mr Valdar Liive at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

ERR - As Skype plans to double its staff numbers, the company's director in Estonia, Sten Tamkivi, announced expansion plans in the home country as well.

"This is still our largest and most important development center in the world," Tamkivi told Äripäev. "Yet we need to be realists. It took seven years for Estonia's staff to grow to 400, but now we need to find another 400 people from around the world in just a year."

The company director said growth will be faster outside of Estonia, especially at the Silicon Valley headquarters.

As of January 17, there were 27 positions open in Estonia.

BNS – Elme Messer Gaas will build a gas plant in Auvere near the city of Narva in northeastern Estonia to start producing oxygen, nitrogen and argon for industrial purposes in 2012.

Elme Messer Gaas and the national power company Eesti Energia said the plant will be built as part of an agreement according to which Elme Messer Gaas will start supplying the oil industry operation of the power company, Eesti Energia Olitoostus, with nitrogen necessary for the production of shale oil.

In addition, the gas company will start producing liquefied oxygen, nitrogen and argon for trading. The plant will allow it to produce up to 80 million cubic meters of industrial gases annually.

"The agreement with Elme Messer Gaas will ensure us a long-term supply of nitrogen we need for production which the Enefit-280 technology requires in bigger quantities than other technologies used for the production of shale oil," Eesti Energia Olitoostus CEO Igor Kond explained. "It was important to us to find a partner who would be prepared to invest in the project and offer us the service at optimum cost."

Elme Messer Gaas chief Raimond Morgenson said collaboration with Eesti Energia Olitoostus is important to the company not only because of building a unique production complex but also because of the opportunity to implement a project that will enable it to achieve product supply independence. "The plant will allow us to cover the need of industrial gases in the Baltic states and enter new markets including northwestern Russia," he said.

Morgenson said Elme Messer Gaas will invest around 30 million euros in northeastern Estonia in the coming years and create many permanent jobs.

ERR - In the Index of Economic Freedom, published each year by the Wall Street Journal and the Heritage Foundation, Estonia is up two places from last year's position. The overall score, comprising 10 freedoms from property rights to corruption, is 75.2 for Estonia, surpassing last year's score by 0.5.

The Index cites significant improvements in monetary and labor freedom as reasons for progress.

Read more: http://news.err.ee/economy/8f53ede0-9ed1-4cb7-9986-82d9f77422eb

ERR - A new energy-storing material for supercapacitors and lithium ion batteries, developed by the Tartu company  Skeleton Technologies, has received a patent in the United States. The new supercapacitors are made of a new nonporous carbide-derived carbon that has a much greater energy density than commercially available ones, and have undergone the first successful trials. The technology could potentially be used by a range of sectors from the automotive industry to defense contracting, and General Motors has expressed interest.

The inventors are Skeleton Technologies researchers Dr. Jaan Leis, Dr. Mati Arulepp, Dr. Marko Lätt and Helle Kuura.

“A problem experienced today with capacitors is the low energy densities and power densities. The mass-produced supercondensers are too big and heavy for many uses, and also expensive due to high material cost," said Leis.

Read more: http://news.err.ee/sci-tech/6a8e7de4-869f-4f21-b21f-d09d4a618f74