One of the most vibrant and investment-attractive areas of the Central Asian economies is the pharmaceutical sector, which includes the Republics of Uzbekistan, Kazakhstan, and Tajikistan.
Their pharmaceutical sector has a strong research and production potential, coupled with government assistance, thus enabling rapid development, and ensuring high investment potential for the manufacture of medicines in these nations.
Resource potential
The pharmaceutical sector of these countries is currently one of the national economies that is quickly developing. According to IQVIA, its volume is around 1.5 billion euros, with retail commerce accounting for 90% and the hospital sector for 10%.
Since 2021, the pharmaceutical industries of Tajikistan, Kazakhstan, and Uzbekistan have experienced a real boom. In the post-Soviet era, this market is among the most alluring. According to previous year figures, the growth rate in units was 10.7%, and the growth rate in euro equivalent was 15.5% when compared to the European market. This increase is the result of the nation rapid population growth, approximately 1.5–2% each year (today about 35 million people live in Uzbekistan) and positive economic changes that have taken place in the country over the past few years.
FORECAST PARAMETERS
development of the pharmaceutical industry for 2022–2026
| Target parameters | Current state |
Expected performance
|
||||
|
2022
|
2023 | 2024 | 2025 | 2026 | ||
| Production volume
(billion sums) *
|
3.2 | 3.6 | 3.9 | 4.2 | 5.9 | 8.2 |
| Assimilated quantity of production
(PCS.)
|
3350 | 3450 | 3800 | 4150 | 4800 | 5100 |
| The level of coverage of the annual need for medicines
(in the form of a product)
|
45% | 55% | 59% | 63% | 78% | 80% |
| Export of pharmaceutical products
(million dollars) *
|
60 | 90 | 100 | 110 | 122 | 130 |
*) Shown in 2021 prices.
APPENDIX No. 1 to the Decree of the President of the Republic of Uzbekistan dated January 21, 2022, No. UP-55
Trends in the pharmaceutical market of Uzbekistan and Central Asian countries
In order to better understand the situation, to learn about the relevant challenges, which the pharmaceutical market participants are dealing with, the Vostock Capital UK team conducted a survey among producers and developers of pharmaceutical and medical goods, technology/service suppliers to the pharmaceutical sector, representatives of research institutes, government agencies, investors, and impartial market analysts.
In general, survey participants positively assess the prospects for the development of the pharmaceutical industry in Uzbekistan and in Central Asia. Due to the coronavirus pandemic, it has become one of the booming industries.
The main factors of this growth are a sharp increase in demand for medicines and medical devices both from the population and the state. In addition, the increase in sales volumes was facilitated by the accelerated introduction of new medicines to the market.
In the development of the domestic pharmaceutical industry, respondents noted such trends as the introduction of the practice of creating free economic and pharmaceutical industrial zones, the use of effective mechanisms for financial support for pharmaceutical manufacturers, in particular, the allocation of subsidies to national pharmaceutical companies for conducting clinical trials, registration and certification of products in foreign countries, and covering transportation costs and costs associated with the introduction of international quality standards GMP, GDP and GPP. Moreover, respondents noted the desire of many pharmaceutical companies to introduce innovative developments such as biotechnology, anti-cancer preparations, vaccines, generics, anti-diabetes medications, food additives and antibiotics.
Learn more about the pharmaceutical market sentiment by requesting a free-to-download report providing a deeper insight into the industry.
Investment potential of the pharmaceutical industry
Rich resources and public support provide a good basis for investment. Today, the pharmaceutical industry of Uzbekistan and Central Asian countries is attractive for investors. For example, the Uzbek authorities plan to develop 104 projects worth 1.25 billion US dollars by 2026, thereby increasing the economic security of the domestic market from the current 55% to 80% in physical terms.
In addition, Uzbekistan has the only plant in Central Asia specializing in the production of insulin for the treatment of diabetes.
In 2022, 5 thousand hectares will be laid in the forestry of Uzbekistan, on which it is planned to produce more than 8.5 thousand tons of raw materials for the pharmaceutical industry.
To deeper explore the potential of the industry the Vostoсk Capital invites you to participate in the coming International Congress and Exhibition Pharma Uzbekistan and Central Asia, which will be held on 16-18 November 2022 in Tashkent. Do not miss the unique opportunity to learn more about the relevant investment, technical and technological trends in the pharmaceutical market of Central Asia, as well as to communicate directly with the leaders of the largest pharmaceutical companies, representatives of regulatory authorities, as well as Russian and foreign investors.
