Uzbekistan has become a significant player in the business development arena of Central Asia. As the pharmaceutical industry continues to grow in Uzbekistan, Canadian companies have a unique opportunity to invest and do business in the country. The industry is gaining momentum thanks to significant progress in the development of its pharmaceutical industry, especially in the production of antibiotics, analgesics and vitamins.
The Uzbekistan pharmaceutical market is one of the largest in Central Asia and is projected to grow at a CAGR of 5.5% between 2020 and 2025. The market was valued at USD 363.5 million in 2020 and is expected to reach USD 477.9 million by 2025. The rising demand for pharmaceuticals, driven by the growing population, increasing prevalence of chronic and lifestyle-related diseases, expanding healthcare infrastructure, increasing health awareness among the people of Uzbekistan is largely responsible for this growth. The government’s efforts to improve medical services and reduce dependency on imports make its part in the development of the market as well.
The government of Uzbekistan has implemented several regulations and incentives to promote the development of the pharmaceutical industry. The government has simplified the registration process for pharmaceutical products, reduced tariffs, provides tax exemptions, and gives subsidies for the purchase of equipment, and various other incentives to attract foreign investments. Uzbekistan’s Ministry of Health has also streamlined the drug registration procedures, making it easier and quicker for international firms to introduce their products to the Uzbekistan market.
The government offers various incentives and regulatory measures to attract foreign investment in the pharmaceutical sector. These include tax holidays, customs duty exemptions, foreign currency repatriation, and land and utility tax exemptions. The government has established a favourable regulatory environment that adheres to international standards and best practices in areas such as drug registration, licensing, and clinical trials. Moreover, the government has established a fund to provide financial support to local pharmaceutical companies for research and development activities.
The government has allocated $70 million to build a new pharmaceutical park in Tashkent, which is expected to attract foreign investors and stimulate the local production of medicines. Additionally, the government has been actively working on improving the quality of pharmaceutical products by implementing stricter manufacturing standards and regulations.
Uzbekistan has a high prevalence of diseases such as cardiovascular diseases, diabetes, and infectious diseases (such as hepatitis, tuberculosis, and HIV/AIDS) and cancer, respiratory diseases. The market demand for these treatments is increasing, with a higher prevalence of non-communicable diseases (NCDs) due to the country’s changing lifestyle patterns. The most common treatments for these diseases include cardiovascular drugs, insulin, and antibiotics. The local pharmaceutical industry has been producing generic versions of these drugs, which are highly affordable for the population.
The local pharmaceutical industry in Uzbekistan is dominated by state-owned enterprises, with well-established players including JSC Uzpharmsanoat, JSC Samimi Farma, JSC Navoiyazot, SamPharm, and UzSanoateksport . The industry is also seeing increasing numbers of foreign players, with major international companies operating in Uzbekistan including Teva, Sanofi, GlaxoSmithKline, Actives, Roche, and Novartis.
Canadian companies interested in doing business in the Uzbekistani pharmaceutical industry should tap into governments incentives and consider the following entry strategies:
Strategic Partnerships: Companies can establish partnerships with local pharmaceutical companies to enter the Uzbekistani market.
Licensing: Canadian companies can license their products to local companies or establish manufacturing facilities to produce and distribute their products in Uzbekistan.
Export: Canadian companies can export their pharmaceutical products to Uzbekistan and establish a distribution network.
To successfully enter the Uzbekistani pharmaceutical industry, companies should focus on building strong partnerships with local companies, establishing a strong and reliable distribution network, offering high-quality and affordable products that meet the needs of the local population, leveraging low-cost manufacturing capabilities, and clinical trial outsourcing. A joint venture with a local pharmaceutical company provides access to the domestic market and expertise of the local partner, while outsourcing clinical trials can save costs and speed up the regulatory approval process.
The pharmaceutical industry in Uzbekistan offers great potential for Canadian companies to invest and do business in the country. With the government’s incentives and the growing demand for quality pharmaceutical products, Canadian companies can enter the Uzbekistani market and establish themselves as key players in the industry. By implementing proven strategies and working with local partners, Canadian companies can ensure their success in the Uzbekistani pharmaceutical industry.