Investment attractiveness of thepharmaceutical industryof the Republic of Uzbekistan

http://uzpharmagency.uz/

CONTENTS

1 OrganisationalStructureof the Agency
2 Market overview
3 Conditions in the pharmaceutical industry
4 Offers for potential investors2

THE AGENCYRESPONSIBILITIES OF THE AGENCYStateregulation of the pharmaceutical industry, including
through state registration, standardization, certification,technical regulation of pharmaceutical products, as well as
licensing of pharmaceutical activities
Implementation of a strategy for the sustainable development ofthe pharmaceutical industry, including through the introduction ofmodern mechanisms of state support for the industry
Organization of the study of the pharmaceutical market,
conducting a systematic analysis of the provision of thepopulation and healthcare institutions with pharmaceuticalproducts, developing proposals on its basis for further saturationof the domestic market and localization of production
Assistance to industry enterprises in organizing cooperation withleading foreign pharmaceutical companies in developing new
types of high-quality pharmaceutical products competitive in thedomestic and foreign markets

CAMPUSESSTRUCTURE
OF THE AGENCY

THE AGENCYState Center for Expertise andStandardization of Medicines,
Medical Devices and Medical
Equipment

Uzbek chemicalpharmaceutical
Research InstituteTashkent Scientific
Research
Vaccine and Serum
InstituteResearch Institute“Eastern medicine”
Scientific industrial
pharmaceutical cluster“Tashkent Pharma Park”
5MARKET OVERVIEWTURKISH PHARMACEUTICAL
MARKET
REPUBLICOF UZBEKISTAN

Population of Republic of Uzbekistan

18 552 000

34 Million
Birth rate –600 000 per year

33 905 500

5 950 000

6 201 000

9 251 000

Total population of Central Asia –more than 110 Million

37 021 000

7*for the 1st January 2020

TURKISH PHARMACEUTICAL
MARKET OF THE REPUBLIC
PHARMACEUTICALSPHERE

1,3 Billion USD

Total Pharmaceutical Market

2018 Total Market
100%
90%

Approximately9750 productsare actively
in the market

80%
70%

55%

78%

60%
50%

2634 products

are produced by local manufacturers

40%
30%
20%

45%
22%

10%

Annually600 new products
is approved0%

Volume (%)

Value (%)
Local

Import8*for the 1st January 2020

TURKISH PHARMACEUTICAL
MARKET
PHARMACEUTICALMANUFACTURING
FACILITIES

Number of Manufacturing Sitesof Uzbekistan in pharmaceutical sphere
Manufacturers of medicines

95

Manufacturers of medicalequipment

23Manufacturers of medical devices

62

Manufacturers of both medicines andmedical devices

Totalnumber of manufacturers

Number of Manufacturing Sites
with certificates of conformity
ISO 9001

GMP international certificates

403Local GMP certificates10

Totalnumber of manufacturers withcertificates of conformity

53

11191

9

*for the 1st January 2020

PHARMACEUTICAL SPHERE OF THE REPUBLIC
For 2018 - 2019 Implemented

Dynamics of growthof the Pharmaceutical Industry

50 investment projects

worth more than 150 million US dollars
Including, in the territory ofpharmaceutical FEZ

11 projects were implementedin the amount of 70 million US dollars

Domestic pharmaceutical production in 2019250

(in quantitative terms)

203200by more than 30%
compared to 2014.

400349350

250

191200250

increased by 3 times in financial
and 4 times in quantitativeterms 100
The number of manufacturers increased(in financial terms

300

150

compared with 2014.

Dynamics ofgrowth of
Manufacturing
Sites

150

200
150

55

100

50

135

100

90
505002014

2019

02014

2019

02014

2019
10

in accordancewith No PD-4554dated12/30/2019

EXPECTED GROWTH IN THE PHARMACEUTICAL INDUSTRY
The volume of export of domestic
pharmaceutical products(in Mln. Usd)

100%

100
80
60
40
20028
2019

403555

GMP Certificationof Domestic Pharmaceuticals

85

70

80%
60%
40%0%

2020

2021

2022

2023

100%

250

80%

20060%

6560

55

500%

2730

35

2019

2020

2021

Share of domestic medicines

40

45

50

2022

2023

2024

Share of foreign medicines

100

100

2021

2022

2023

2024

certified

not certified

70

Growth in the number of domestic
pharmaceutical enterprises
10

14

1820

4

6191

196

203

209

215

220

2019

2020

2021

2022

2023

2024

150
100

40%
20%

2020

300

in monetary terms (in %)

70

2019

2024

The volume of release of domestic
dosage forms

7394020%100500Total amountForeign pharmaceutical companies

in accordancewith No PD-4554dated12/30/2019

CONDITIONSIN THE PHARMACEUTICAL INDUSTRYCREATED TERMS FOR INVESTORS
Decree of the President of the Republic of Uzbekistan
No. DP-4554 dated 12/30/2019 “About additional measures fordeepening reforms in the pharmaceutical industry of the Republicof Uzbekistan”“Reducing imports of medicines through modernization, increasing
existing production capacities and the development of new types ofmedicines, as well as by attracting investments”.

Decree of the President of the Republic of Uzbekistan
No. DP-5707 dated 04/10/2019 “On further measures toaccelerate the development of the pharmaceutical industry of therepublic in 2019 - 2021”“When making state purchases of medicines and medical supplies,
the state customer rejects all applications containing proposals forthe supply of imported medicines and medical supplies, if there are
two or more participants - domestic producers of similar products”.

The Law of the Republic of Uzbekistan No.-598
LRU
dated
25/12/2019, “On Investments and Investment Activities”

Decree of the President of the Republic of Uzbekistan
No. DP-5032 dated 05/04/2017 “On the creationof free economic zones”“In the event that subsequent legislation of the Republic ofUzbekistan worsens the conditions for investment then forinvestors within ten years from the date of investment thelegislation in force on the date of investment is applied”.
“Create free economic zones “Zomin-Pharm”, “Kosonsoy-Pharm”,“Sirdaryo-Pharm”, “Boysun-Pharm”, “Bustonlik-Pharm” and“Parkent-Pharm””.

PHARMACEUTICAL FREE ECONOMIC ZONESFEZ PARTICIPANTS ARE EXEMPTED FROM:Land tax
FEZ «BustonlikPharm»

Property tax

FEZ «AndijanPharm»Single tax payment
Tax on the improvement and development of socialinfrastructure

FEZ «KosonsoyPharm»

FEZ «BoysunPharm»
FEZ «ZominPharm»

FEZ «ParkentPharm»

Payment of extra-budgetary funds for thereconstruction of educational and medical institutions
Admission to the Republican Road Fund
Customs payments for raw materials, equipment andcomponents
TERM FOR PREFERENCES:
from 0.3 up to 3 million

from 3 up to 5 million

from 5 up to 10 million

up to 3 years

up to 5 years

up to 7 years

from 10 million
up to 10 years

and more*

PHARMACEUTICAL FREE ECONOMIC ZONESFiling an application by Investor
Consideration of the possibility of implementing theproject, transfer of the application to the Administrative
Council of the FEZ (in 2 working days)
Making the decision to place an investment projectby FEZ Governing Body
(in 5 working days)
Granting the status of a FEZ participant
by Directorate of FEZ(in 1 working day)

Package of Documents –1. Investment Application,
2. Business-plan,
3. Information about investors working experience,4. Information on the financial and economic activities of the investor.

TASHKENT PHARMA PARK
Organizations included in the cluster:State Center for Expertise and Standardization ofMedicines, Medical Devices and Medical Equipment
Pharmaceutical University
with an international Diploma
Research and Development Centers,
Research Laboratories, Vivarium, Pharmacopeia Center
Symposium center, Hotel, Accommodations
for international teachers, specialists, students
Industrial zone for the implementation of innovative
projects for the production of pharmaceutical products

OFFERS FOR POTENTIAL INVESTORSCONCLUSION
List of groups of drugs recommended for localization of productionin the republic2019
in– 2021
Antibiotics
Medicines for the treatment pathology
ofof the endocrine system
Nonsteroidal anti
-inflammatory drugs
Antiviral drugs
Medicines for the treatment of pathology of the gastrointestinal tract
Immunobiologicalmedicines
Medicines for the treatment of pathology of the respiratory system
Medicines for the treatment cardiovascularofdiseases
Medicines for the treatment oncologicalofdiseases
Diaskintests for early detection oftuberculosis infection in childrenin accordance withNo.UP-5707 from 04/10/2019

PRIORITY AREAS FOR THE LOCALIZATION OF PHARMACEUTICALCONCLUSIONPRODUCTS
The ratio of sales of domestic and foreign pharmaceutical products for 2019(in mln. US dollars.)

Diaskin tests for early detection of tuberculosis infection in children

02.2

Oncological drugs

2.8

Cardiovascular drugs

2.4

Preparations for the treatment of pathology of the respiratory system

26.9

20

Drugs for the treatment of pathology of the gastrointestinal tract

73.1

1.5

115.7

Nonsteroidal anti-inflammatory drugs
Medicine for the treatment of endocrine system pathology

15.4

1.5

Immunobiological medicines

Antiviral drugs

47.5

38

1.2Antibiotics

18(Be formed)

0102030

Domestic production

Import405060708090100

AGENCY ON DEVELOPMENT OF THE
PHARMACEUTICAL INDUSTRYUNDER THE MINISTRY OF HEALTH OF THE REPUBLIC OF UZBEKISTAN

http://uzpharmagency.uz/
E-mail:farmagentlik@minzdrav.uz