The pharmaceutical market of Uzbekistan is growing rapidly due to economic development and population growth. The market is currently estimated at $650-700 million but is forecast to double to $1.5 billion by 2020. Local manufacturers currently hold 20% market share while the remaining 80% is held by foreign manufacturers, primarily from Europe, the US, and India. The government is supporting development of domestic production through incentives for foreign investment. Key growth areas are expected to be generics, OTC drugs, and patented brands as consumer purchasing power increases. The market remains underdeveloped with a need for more modern medical facilities and a wider range of products across the country.

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THE PHARMACEUTICAL MARKET OF
UZBEKISTAN
CURRENT STATUS AND PROSPECTS 1
1
This research is a copyrighted property of VAYTON - NTLUX SA. It shall not be used, neither reproduced without
authorization. Views expressed in the research do not pretend to be exhaustive.

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With its geographic location at the heart of Central Asia, rapidly growing
economy and population (31 million as of December 2015, half of Central Asian
population) Uzbekistan is a promising market with tremendous growth potential for
pharmaceutical companies.
The Uzbek pharmaceutical market is in expansion and expected to further
grow because of dynamic economic development and growing demand of the
population.
According to the Government Agency “Uzinfoinvest”, currently the market
capacity is estimated at 650-700 million USD with annual per-capita spending levels
at a mere 22.5 USD in 20152. Other sources estimates Uzbekistan’s pharmaceutical
market at 0.9-1 billion USD and forecast a compound annual growth rate of 20-25%
in the next years3. There are more optimistic forecasts by local analysts, who predict
the market capacity doubling by 2020 and reach 1,5 billion USD.
Some of this growth will come from sustained investment and increasing
state spending on healthcare. In 2015 4% of GDP or 14% of Uzbekistan’s budget was
directed to healthcare sector. Moreover, 2016 was declared in Uzbekistan “Year of
healthy mother and child” with adoption of 2.6 billion USD State program to carry
out large scale social activities and support the national healthcare system.
Today the Uzbek pharmaceutical market remains underserved and less
diversified, lacks number of branded products mostly made by European and
American companies. Regions of the country still face the lack of effective
pharmaceuticals and modern medical equipment. About 4000 medical facilities
operate in Uzbekistan and each region has its own large hospital and there are 155
district level hospitals and clinics.
According to the Ministry of Health, currently there are more than 7000
pharmacies located in all over Uzbekistan. For the most part, pharmaceuticals sales
2 “Uzinfoinvest” investment promotion agency under the Ministry of Foreign Economic Relations, Investment and Trade of
Uzbekistan (http://www.uzinfoinvest.uz/eng/investment_opportunities/by_industry/pharmaceutical_industry)
3
Online weekly journal www.apteka.ua, Перспективы фармацевтического рынка Узбекистана, 25.08.2014

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in Uzbekistan have been decentralized. Notably, all drug stores, except for those
located in hospitals, have been privatized. Further, the import and internal shipment
of pharmaceuticals and medical equipment is no longer centralized.
The Uzbek pharmaceutical market is strongly dependent on foreign suppliers.
The share of local manufacturers on the market is estimated at 20%. Therefore the
Government’s focus is to support local production by proposing to foreign investors
with relevant know-how to establish joint-ventures on beneficial conditions.
Privileges include considerable tax and customs payment exemptions for enterprises
with no less than 300,000 USD foreign direct investments. This has led the state
pharmaceutical holding “Uzpharmsanoat” and some local producers to pursue
foreign partnerships by establishing joint manufacturing units with companies from
abroad.
MARKET STRUCTURE
According to the General Directorate for quality control of pharmaceutical
products and medical equipment of the Ministry of Health of Uzbekistan, as of
December 2015 the number of registered pharmaceutical products has reached
about 8000. 1800 out of them are produced in Uzbekistan.
Local manufacturers (121 companies, 26 out of them are joint ventures)
accumulate about 20% of the market by value, leaving thus 80% share of the market
to foreign manufacturers.
Pharmaceutical products from Europe and USA have a strong position in the
Uzbek market, their share is estimated at 35%.
Products from CIS (Commonwealth of Independent States) countries account
26% of the market, among them Russian companies are leading with 12% of all
sales, Ukrainian – 9%, Belarusian – 4%.
Over the last few years Indian manufacturers have gained a strong foothold
in the Uzbek pharmaceutical market. Today they account for 15% of the market
accordingly.

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The number of pharmaceutical companies operating in Uzbek market is
about 300. This is 1.5 less than in neighboring Kazakhstan with population of 17
million.
Currently foreign leaders in Uzbek pharmaceutical market are Berlin-
Chemie/Menarini Pharma (Germany), Sanofi-Aventsis (France), Arterium (Ukraine),
World Medicine (UK), KRKA (Slovenia), Novartis (Switzerland), “BORISOVSKIY ZAVOD
MEDICINSKIKH PREPARATOV” JSC (Belorussia), Takeda (Japan), Gedeon Richter
(Germany), Unifarm. Inc. (USA).
10 top foreign pharmaceutical companies in Uzbek market in 2013-2014
Rank Manufacturer Market share
1 Berlin-Chemie/Menarini Pharma GmbH 6.1
2 Sanofi-Aventis 3.3
3 Arterium 3
4 World Medicine 2.6
5 KRKA 2.3
6 Novartis 2.1
7 “BORISOVSKIY ZAVOD MEDICINSKIKH
PREPARATOV” JSC
2
8 Takeda 1.9
9 Gedeon Richter 1.9
10 Unifarm. Inc. 1.6.
In terms of market segments, generics account for the largest part of the
market in value terms (almost 50 %, average unit price – 4-5 USD), followed by OTC
drugs (26 %, average unit price – 5-6 USD) and patented brand products (24 %,
average unit price – 15 USD). Generics dominate the market by volume and it is
expected that in value terms they will cede their position to patented medicines in
the longer term since purchasing power of consumers is growing. Population in

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capital and large cities show more interest and trust to western pharmaceutical
products renamed for their high quality and efficiency.
In the Anatomical Therapeutic Chemical (ATC) Classification System the best
selling pharmaceutical products in Uzbekistan are anti-infective drugs for systemic
use (group J01), blood substitutes and perfusion solutions (В05), analgesics (N02),
vitamins and drugs for alimentary tract and metabolism (А11), anti-inflammatory
and antirheumatic drugs (MO1). See the table below.
Top ATC groups drugs in Uzbekistan
Rank ATC code ATC Group Market share in %
1 J01 Antibacterials for systemic use 19,3
2 B05 Blood substitutes and perfusion
solutions
6,7
3 N02 Analgesics 5,4
4 A11 Vitamins 4,1
5 M01 Anti-inflammatory and
antirheumatic products
2,9
The best selling and most used drugs in Uzbekistan remain such antibiotics as
Ampicillin, Cefazolin and Ciprofloxacinum. Major part of products in the Top 20
trade names list are hospital drugs (Infesol 40, Sodium chloride, Reosorbilact etc.).
See the table below.
Top 20 trade names in Uzbek pharmaceuticals market in 2013-2014
Rank Trade name Market share in %
1 Vitrum Prenatal 2
2 Cefazolin sodium 2
3 Infesol 40 2
4 Carbamazepine 2
5 Paser 1

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6 Actovegin 1
7 Adzhizim 1
8 Heparin 1
9 Mezym forte 1
10 Sodium chloride 1
11 Reosorbilact 1
12 Myrtillus-Mic 1
13 Mucaltin 1
14 Ampicillin sodium salt 1
15 Nimesil 1
16 Cerebrolysin 1
17 Ciprofloxacinum 1
18 Ceftriaxone 1
19 Cinepar 1
20 Thiotriasoline 1
Since the Top trade names ranking is dominated by non-branded drugs, the
International Nonproprietary Names (INN) and their combinations list almost
duplicate it. Four antibiotics (Cefazolin, Ciprofloxacin, Ampicillin, Ceftriaxone) uphold
strong positions in the Top 20 INN list in 2013-2014.
Rank INN/Combination Market share in %
1 Herbal Extract/Экстракт трав 3
2 Pancreatin 3
3 Cefazolin 2,5
4 Polivitamins+multiminerals 2
5 Ceftriaxone 2
6 Carbamazepine 2

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7 Ciprofloxacin 2
8 Аmino acids + minerals 2
9 Diclofenac 2
10 Aminosalicylate sodium 2
11 Sodium heparin 1
12 Ampicillin 1
13 Diclofenac+Paracetamol 1
14 Sodium chloride 1
15 Azithromycin 1
16 Fluconazole 1
17 Metronidazole 1
18 Levofloxacin 1
19 Phospholipids 1
20 Deproteined gemoderivat from the blood of
calves
1
Import regulations
According to the legislation, any pharmaceutical product imported into
Uzbekistan should be registered by the General Directorate for quality control of
pharmaceutical products and medical equipment under the Ministry of Health of
Uzbekistan4. Registration certificate is issued for 5 years. Currently, registration fee
for a foreign pharmaceutical product amounts to 5000 USD.
All procedures shall take no more than 6 months.
Any imported pharmaceutical product should have a safety certificate from
its country of origin. Customs department special laboratories carry out control of
pharmaceuticals imported into Uzbekistan and certify their compliance with proper
quality standards. A sample of each type of pharmaceuticals which arrives at the
customs warehouse shall be sent to the central laboratory of control and analysis.
4
Resolution of the Cabinet of Ministers №352 adopted on 22 December 2014

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The laboratory is operated by the State Joint-Stock Company “Dori-Darmon”. This
analysis usually takes 3-6 business days.
Customs payments for import of pharmaceutical and medical products
consist of the following fees:
1. Customs duties: 5% for pharmaceuticals and majority of medical
equipment, 30% for toiletries and hygienic products;
2. Excise duty: there is no excise tax on pharmaceuticals and majority of
medical equipment; Excise tax on toiletries and hygienic products vary
between 15 and 30%;
3. Fees for customs services: 0,2%;
4. Value added tax: 20%. VAT is not applied to any imported medicines that
have no alternatives locally produced.
Licensing of pharmaceutical activity
Any pharmaceutical activity (production and preparation of drugs,
pharmaceutical researches, wholesale and retail commerce of pharmaceutical
products) requires acquiring a license which is issued by Licensing Committee under
the Ministry of Health of Uzbekistan.
Licenses are issued for 5 years. Application for a license shall be examined no
longer than 20 days. Licensing fees amount 5 minimum wages – 651,250 UZS or
about 200 USD as of December 2015.
Pharmacies
According to the Licensing Committee of the Ministry of Healthcare, as of
December 2015 there are more than 7500 pharmacies in Uzbekistan. They are
different in size, capacity, turnover and quality of service. Few of them are really
modern and established large retail chain. Drugstores with high quality service and
wide range of products are mostly located in the capital - Tashkent with 3,5 million
population and administrative centers of regions.

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In Tashkent and regions several local brand modern drugstore chains
operate. In some cases, local wholesale firms which directly import pharmaceuticals
from abroad or local manufacturers possess their own retail chains. The largest
network of 1300 pharmacies located all over Uzbekistan is operated by JSC “Dori-
Darmon”. Among other leading drugstore chains in Tashkent are “Asklepiy”,
“Medicare”, “Propharma”, “Technopharm”, “Oximed”, “Grand Pharm”, “Novo
pharma”, “Jurabek”.
Wholesale companies
Today about 70 local and foreign wholesale companies supply Uzbek market
with pharmaceuticals. Among the wholesale leaders are “Grand Pharm Medical”, JSC
“Dori-Darmon”, “Asia trade”, “ATM partners”, “Medicare”, “Pharmed”, “Lahisam”,
“Asklepiy”, “Nika Pharm Service”, “Atlas Pharm”, “Farmexx”, “Quramax Medical”,
“Med Import” etc.
Local pharmaceutical industry
For the last years the Government of Uzbekistan has been taking measures
aiming at developing national pharmaceutical industry and gradual import
substitution. From 2010 to 2015 around 600 million USD was invested in the local
pharmaceutical sector. Uzbek authorities try to stimulate local production by giving
tax preferences and low interest loans to manufacturing companies.
At present 121 local enterprises produce about 1800 varieties of medicines.
Total value of their production in 2015 is estimated at 230 million USD. That is
almost 20-22 % value share of the Uzbek market5. In 2015 local enterprises launched
manufacturing of 65 new medicines.
Today 26 joint ventures established with investors from Great Britain,
Turkey, India, Germany, Korea, Poland, France, Russia, UAE operate in the
pharmaceutical industry of Uzbekistan. Among them «Novopharma Plus», «Nika
5
Press-conference at “Uzpharmsanoat” JSC, http://ru.sputniknews-uz.com/economy/20151218/1358800.html

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Pharm», «DentaFill Plus», «Nobel Pharmsanoat», «Remedy group», «Jurabek
Laboratories» are the most successful ones.
Representative offices of foreign pharmaceutical companies
A foreign pharmaceutical company can open its Representative Office (RO) in
Uzbekistan. Ro is not subject to taxation. It is accredited by the Ministry for Foreign
Economic Relations, Investments and Trade (MFERIT). Registration fee is 1300 USD.
Although the RO is not allowed to conduct business activity, it plays a key
role in promoting company and its brands by establishing business contacts,
advertising and propagating information on products and engaging in other
representative functions.
Application for accreditation of a RO is examined by MFERIT for 10 days. In
case of a positive decision the certificate of accreditation is issued during a 5 day
period. Accreditation is usually granted for 3 years with the possibility of
prolongation free of charge.
Currently more than 60 foreign pharmaceutical companies have their
representative offices in Uzbekistan. Their activities aim at exploring and conquering
the new market, strengthening the position and increasing market share of their
respective companies. To do so representative offices carry out advertising and
develop targeted contacts with local wholesale companies, drugs retail chains,
hospitals and clinics. Several interviews with persons working for foreign
pharmaceutical companies in Tashkent confirm that the opening of a RO allows
foreign company to gain a foothold in a fast growing market and increase its
turnover.
For a dynamically developing and promising market of almost 32 million
which is Uzbekistan, the presence of only about 70 foreign pharmaceutical
manufacturers ROs appears clearly insignificant. Today, in countries with smaller
population like Azerbaijan and Kazakhstan more than 100 foreign pharmaceutical
companies have their presence, the number of registered pharmaceutical products

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reached 10 000 (only 8000 products in Uzbekistan). So, it is evident that there is an
important niche in Uzbek market for western companies. Their high quality products
are likely to be more demanded due to growing purchasing power of population.
Fight against counterfeit
Over last years the Government of Uzbekistan has taken drastic measures to
fight against counterfeit, smuggling and illicit trade of pharmaceutical products. A
great step in this direction was the adoption in August 2009 of amendments to the
existing legislation which since then provides for up to 15 years of imprisonment for
manufacturers, smugglers and sellers of counterfeited pharmaceuticals. However
counterfeit drugs sales remain an issue that demands long standing and continuous
efforts and investments in new methods and equipment to detect false drugs.
Education and training of pharmacists
In Uzbekistan there are two main institutions which prepare and supply the
labor market with pharmacists – Tashkent State Institute of pharmaceutics and
Tashkent professional college of pharmaceutics. Each year about 250-300 students
graduate from these institutions. Therefore there is no lack of local specialists in
pharmaceutics. An average monthly salary of a pharmacist in Tashkent equals 400-
500 USD, in regions – 300-350 USD.
International healthcare exhibitions
Every year Tashkent hosts several international specialized exhibitions in the
field of medicine and pharmaceuticals which brings together all key players in
healthcare sector providing exhibitors with an excellent networking opportunity to
precisely target relevant budget-holders and partners in the shortest time possible
and at an affordable cost. Among them the most prestigious and regular events are:
 Tashkent International Healthcare Exhibition (TIHE). The next 21st
edition of TIHE is to be held from 19 to 21 April 2016;

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 Central Asian International Pharmaceutical Exhibition “Apteka
Expo/TechPharm”. The next 11th edition of “Apteka Expo” will take
place in April 2016;
 International Specialized Medical Exhibition “Uzmedexpo”. The next
9th edition is planned to be held from 28 to 30 September 2016;
Conclusion. Uzbekistan is one of the most promising pharmaceutical markets
in the Commonwealth of the Independent States (CIS). A number of key western
pharmaceutical brands are still being absent on the fast-growing market, clearly,
there is a considerable potential for launching new sales, important scope for
investments and a marketplace for virtually any product. Key assets of the Uzbek
market are country’s relatively low labor costs compared with neighboring
Kazakhstan, similar or even few unofficial costs’ of doing business, relatively good
infrastructure, rapidly growing economy, dynamic and qualified young population.
National drug consumption is characterized by trends common for many CIS
pharmaceutical markets: relatively low average cost per pack of drug; the market is
dominated by foreign manufacturers in value terms, with a rather small percentage
of national producers; the INN and trade names Top lists are still represented by
products with a long history of use. That is the evidence of existing market niche for
new comers.
About VAYTON Central Asia. VAYTON Central Asia is a Sales & Marketing
company based in Tashkent with a team dedicated to the development of the
Central Asian market. VAYTON Central Asia specializes in Textile and Pharmaceutical
products and equipment. Our services include the representation of European
manufacturers, the marketing of new products and the development of socially
responsible projects.