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Bioblast Pharma has begun a project to create a full-cycle biotechnological R&D laboratory (from diagnostics to development), specializing in the diagnosis and treatment of the most socially significant and ultra-rare genetic diseases, investments in 2019-2023 will amount to $2 billion.

The laboratory is engaged in scientific developments in the field of personalization of medical care in oncology, cardiology, reproductive medicine, psychiatry and severe congenital diseases. Its activities will cover 5 areas – genetic research, production of diagnostic kits, cellular pharmaceutical products, biobank, production of biological products.

The project is implemented in two stages. The first (2019-2023) one includes launching of a new laboratory by Happy family store that will focus on commercial services and the development of diagnostic kits and drugs. The total investment of Bioblast Pharma in the project at the first stage, including the cost of equipping the laboratory with equipment, will amount to about $200 million by the end of 2020. It is expected that funding for the laboratory will also come from co-investors. Bioblast Pharma expects that from 2021 the laboratory will operate at the expense of its own cash flow, including that generated through participation in state programs.

In 2023, the second stage of the project will begin – the stage of commercialization of developments and the creation of production of its own medicines, investments in the project may amount to about $1 billion, financing will be carried out by attracting bank loans and funds from co-investors.

At the first stage, the focus will be on fast payback products. In 2020, the laboratory begins providing services such as genetic research, biobank services; development and production of diagnostic kits will begin. In 2025, it is planned to launch biopharmaceutical production of medicines based on genetically engineered constructions, active cellular pharmaceutical products and DNA vaccines.

The average annual growth rate of the market segments in which the laboratory will operate is expected to be 15-20%, while the volume of these market segments by 2025 will grow more than 4 times from 2018.