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Rafarma Pharmaceuticals, Inc. (RAFA) Benefitting From World Economic Challenges

Russia, like so much of Europe, Asia, and other parts of the world, has been wrestling with slow growth. For many countries, including the U.S., the problem has been a growing debt crisis, and the associated attempts to get expenditures back in line with income. It's a crisis often blamed on years of over-spending politicians who have gradually learned to trade fiscal responsibility for short-term political expediency. But in the case of Russia, where the debt to GDP ratio is low, the challenge has been about dealing with an over-dependency on oil and gas exports in a world suddenly flush with new resources, such as from the U.S., coupled with the ongoing challenge of restructuring inefficient economic and political institutions.

For Rafarma Pharmaceuticals, having a government under growing pressure to build economic and social infrastructure while stimulating the economy has been a major benefit. RAFA is a rapidly growing Russian-based multi-product pharmaceutical company that is being actively encouraged by the government in an effort to develop Russia's pharmaceutical independence from western-based big pharma. To this end, the company has constructed the most technologically advanced pharmaceutical plant in Russia, with the goal of producing a range of generic and alternative pharmaceutical products available for sale at "mass market" prices for the domestic market. The plan is to dramatically reduce prices on certain pharmaceutical products by 30%-40%.

The timing is right, with Russia's pharmaceutical industry emerging as one of the world's fastest growing markets. RAFA's marketing plans have already led to the company being considered the principal supplier to the Russian Public Health system and the Russian Army. The company is currently fully GDP compliant, and GCP and GMP standards are in their final stages of approval. The company is also working to become GLP and GAP compliant, at which time Rafarma Pharmaceuticals will be the only Russian-based pharmaceutical company representing the complete cycle of the world's top pharmaceutical standards.

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