**BRIEF OVERVIEW OF ARMENIA****=****S PHARMACEUTICAL MARKET**

 

Source: U.S. Embassy, Yerevan

Author: George Isayan, BISNISRepresentative

Date:    August 1999

 

**Market Size and U.S. Share**

 

The potential total market forpharmaceutical products in Armenia is estimated to be $40-50 million. In 1998,however, the annual sales turnover of pharmaceutical products was $10 million.The Armenian pharmaceutical market has a well-established countrywidedistribution network. It includes 540 pharmacies licensed by the Armenian Ministryof Health,  with nearly 90% ofthese in private hands. Although the U.S. share of pharmaceutical imports is relatively small,  it is growing and is represented bysuch brand-name producers as Johnson & Johnson, Merck, andBristol-Myers-Squibb.

 

**Major Market Suppliers**

 

Pharmaceutical wholesaledistribution in Armenia is handled by 37 local  private companies. Among the largest is Armfarmacia, formerly the  state-owned monopoly for the importation and distribution ofmedicines to  Armenia.  Currently, the company is fullyprivatized and, with annual sales of almost  $2 million in 1998, it holds 10-15% of the local market.Other major suppliers engaged in both wholesale and retail distribution includeEskulap, Arfa, Yerevan Drugbase, Lambron, and Shtap Ognutyun. Among the largestforeign suppliers are companies from the UK (GlaxoWellcome has arepresentative  office), Germany(Asta Medica), Hungary (Gedeon Richter), and a number of  pharmaceutical producers from Russia,Ukraine, Belarus, the Baltic States and Iran. In1998, Pharmatec, a UK-owned company, established amanufacturing facility in Yerevan, and began production of I.V. solutions andother products. 

 

The total amount of its investmentis around $20 million. Pharmatec's Yerevan facility has begun exporting toRussia and Georgia, and is planning distribution to Kazakhstan and Uzbekistan. 

 

A significant volume ofpharmaceutical products comes to Armenia through humanitarian assistancechannels, mainly from the United States and the EU, with free distribution topatients. 

  

**Major End-Users**

 

Major end-users of both humanitarianassistance and pharmaceutical products supplied through commercial channels arepublic hospitals, private pharmacies, and local, private, small and mediumsized clinics. The state reimburses patients the cost of several prescriptionmedicines such as narcotics, antidiabetics (insulin), and oncology products.For all other items, patients must pay themselves. 

 

**Best Sales Prospects**

 

There is large demand for syringes,dressing supplies, antiseptic pads, band aids, surgical tapes, and oxygentanks. There are also good sales prospects for narcotics and analgesics. Thevitamin market is expected to grow rapidly in the near future. Armenia has thepotential to build its own production facilities for pharmaceuticals and othermedical products using a low cost skilled labor force, taking advantage ofliberal trade legislation, and exporting possibilities of entering the regionalmarkets of the other NIS countries.

 

**Registration/Certification**

 

Exports of pharmaceuticals toArmenia require registration (certification) by the Drug and Medical TechnologyAgency (DMTA) of Armenia. Applications for registration should be filed by themanufacturer.  The process may takeanywhere from a few days up to three months (some drugs may require laboratorytesting).   The registrationis valid for 5 years.  Exportersare warned that former USSR registrations were valid in Armenia until the endof 1996 only.  Registration feesvary from $200 for new dosages of known drugs to $1,200 for new drugs. DMTAmaintains a list of all pharmaceuticals registered in Armenia, as well as TheEssential Drugs List, which can be requested from DMTA. 

 

**Key Contacts**

 

Drug and Medical Technology Agency(DMTA)

6 Hekimyan St.

Yerevan Armenia

Tel: (374-2) 533-578, 524-780

Fax: (374-2)151-697, or 527-530

E-mail: [email protected]

Contact: Dr.. EmilGabrielyan, Director, or Mr. Vartan Tovmasyan, Head of Registration Department

 

Ministry of Health ofArmenia

8 Tumanian Street, Yerevan- 37, Armenia

Tel: (374-2) 528-872

E-mail: [email protected]

Contact: Mr. TatulHakobian, Head of General Department of Provision

 

"DeghabazaYerevan"

20 Komitas St.,Yerevan-12, Armenia

Tel: (374-2) 270-238

Fax: (374-2) 270-238

 

Lambron-Pharmimpex

22 Kazar Parpetsu St.,Yerevan-2, Armenia

Tel: (374-2) 538-796

Fax: (374-2) 533-265

E-mail: [email protected]

http://www.absc.static.amilink.net/lambron

 

Arfa

21/24 Tumanian St.,Yerevan-1, Armenia

Tel: (374-2) 589-838

Fax: (374-2) 589-838

 

**Investment Opportunity**

 

Industry: MedicalDiagnostic Test Systems

 

Company: Delta 

 

Delta was founded in1992 as a private company. It specializes in the manufacturing of diagnostictest systems for clinical chemistry and the import and wholesale distributionof diagnostic kits and equipment. The imported kits are designed for Infectious Diseases, Tumor Markers,Hormones, Fertility, etc.  AmongDelta's clients are the largest local hospitals, clinics, and medical centers.The company's suppliers include DRG International, Syntron Bioresearch,Immunosticks, Inc., Awareness Technology (all U.S. companies), a number offirms from Israel, the Czech Republic, Germany, France, and Russia.  Delta has a staff of 18 people,including highly skilled chemists and biophysicists.

 

Delta wishes to expandits production volume and seeks a U.S. joint venture partner to set up thejoint production of diagnostic reagents in Armenia.  The American company is expected to supply packaging

equipment and providebulk products and accessories.  Theproducts can be marketed in neighboring Georgia and other NIS countries.Additional marketing assistance will be appreciated. Delta can conduct businessin English.

 

CONTACT: Dr. AnnaArzoumanian, Manager (Speaks English)

7 Hasratian St., Yerevan- 14, Armenia

Tel: (374-2) 232-145

Fax: (374-2) 151-331

E-mail: [email protected]