28th October, 2015 This report is submitted to the US
Agency of International Development. The report was created by VI-ORTIS LLP
The USAID's Regional Economic Cooperation Project
Analysis of the pharmaceutical market and identifying barriers in this industry and
the potential markets for the promotion of pharmaceutical products manufacturers in Central Asia
research and review the market conditions for drug production, consumption, imports and exports. To show volume of pharmaceutical markets and their structures in the countries of Central Asia. To explore the potential for the production and sales of pharmaceutical products in the countries of Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) for increasing the circulation of drugs in Central Asia. To show the strengths and weaknesses of the pharmaceutical market based on all the data and analysis.
The project aims:
Kazakhstan Population - 17,541,249 people GDP (2014) - $ 286.154 billions (41st) The market volume is 1.91 billion dollars, 0.2% of the world market The level of consumer status: $ 108.8 for one person per year
Central Asia overview
Uzbekistan Population - 31 025 500 people GDP (2014) - 183,933 billions (64th) The market volume is 0,9 billion dollars The level of consumer status: $29 for one person per year
Turkmenistan Population- 5 240 502 people GDP (2014) - 54,746 billions (85th) The market volume is 0,1 billion dollars The level of consumer status: $19 for one person per year
Tajikistan Population- 8 439 700 people GDP (2014) - 17,555 billions (127th) The market volume is 0,1 billion dollars The level of consumer status: $11.85 for one person per year
Kyrgyzstan Population- 5 919 700 people GDP (2014) - 18,001 billions (135th) The market volume is 0,3 billion dollars The level of consumer status: $50.68 for one person per year
Overview of the pharmaceutical market in Central Asia
*The high level of imports *Rates of growth *Focus on domestic markets *Slight dependence on exports *The low level of investment in the development of new drugs *The low level of per capita consumption
The level of consumer status of the population of Central Asian countries in comparison with the US, Japan and Europe.
108.8 286.49
906.2 1105.6
0 200 400 600 800 1000 1200
1
Kazakhstan The level of consumer status for one person per year, USD
США Япония Европа Казахстан
11.85 286.49
906.2 1105.6
0 200 400 600 800 1000 1200
1
Tajikistan The level of consumer status for one person per year, USD
США Япония Европа Таджикистан
29 286.49
906.2 1105.6
0 200 400 600 800 1000 1200
1
Uzbekistan The level of consumer status for one person per year, USD
США Япония Европа Узбекистан
50.68 286.49
906.2 1105.6
0 200 400 600 800 1000 1200
1
Kyrgyzstan The level of consumer status for one year, USD
США Япония Европа Кыргызстан
19 286.49
906.2 1105.6
0 200 400 600 800 1000 1200
1
Turkmenistan The level of consumer status for one person per year, USD
США Япония Европа Туркменистан
Overall SWOT-analysis of the pharmaceutical industry of Central Asia
STRONGS:
СЛАБЫЕ СТОРОНЫ: WEAKNESSES
Willingness to modernize the sector and the growing level of state support
The established pharmaceutical companies having a good knowledge of the specifics of the local market
Provision demand within the guaranteed volume of free medical care through government procurement of medicines, medical devices
Potential export markets of the Customs Union / EEA The developed network of logistics - from producers to distributors and
retailers Certification GMP / ISO enterprises
The dominant position of pharmaceutical companies from the EU, India, Turkey, the market of Kazakhstan
Low export potential due to a mismatch requirements of the international GMP standard
A shortage of qualified personnel Problems of access to credit Lack of modern production technologies Continuous registration procedure more than 8 months. The focus of the public procurement for the purchase of expensive
original drugs at the expense of mass generics The interest of a large part of doctors to prescribe imported drugs
and pharmacy staff - offering customers expensive imported drugs
OPPORTUNITIES:
THREATS:
Production of new generic products upon the expiration of patents on original drugs
Warranty sales to 7 years through long-term contracts Buy (transfer) technology will lead to the production of modern drugs Contract manufacturing organization with foreign companies The transition to sustainable drug supply, t. ie. increasing the domestic
consumption of generics
Dependence on imported pharmaceutical and medical products Dependence on imported raw materials and packaging materials The rapid development of the pharmaceutical industry in India and
China and an increase in imports Reduced exports of Central Asian countries with the introduction
of new production capacity of the pharmaceutical industry The increase in imports of pharmaceutical products to Russia,
Belarus and Ukraine
Uzbekistan and Kazakhstan export geography
Ukraine
Moldova
Georgia
Azerbaijan
Armenia
Turkmenistan
Kyrgyzstan
Tajikistan
Afghanistan
Mongolia
Russia
Barriers to the development of trade of Central Asian countries
Low quality and competitive price, because promotion of goods on the markets considered will depend heavily on the availability of competitive advantages and costs of production and quality characteristics, as well as the company's advertising budget
The delay of investment projects in switching to an industrial capacity
The opacity of drafting of Formulary list, approval of the list of basic essential medicines should provide for the inclusion of domestic producers of both countries, the definition of the original volume of production, life-saving medicines on the basis of pharmaceutical and biotechnology companies of the Republic
Limitations on liberal access to the markets of Central Asia (duty-free import of products and the absence of customs clearance on the territory of Central Asian countries)
1 2
3
4
Steps for development of the pharmaceutical industry
The fight against the production and distribution of counterfeit products;
approval of the list of basic vital drugs, including domestic products
Development of standards of diagnosis and treatment of diseases with the priority use of domestic pharmaceutical production;
Implementation of GMP standards;
The cost of the drug basket in month per capita in USD currency terms, Almaty by districts
4,4
46,70
19,7 23,5
5,6
42,8
6,55
12,3
The share domestic products of in districts of Almaty, %
January – 27,5% September – 29,4%
January – 22,7% September – 24,5%
January – 18,9% September – 23,8%
January – 25,6% September – 26,6%
January – 19,1% September – 21,4%
January – 25,3% September – 19,2%
January – 25,4% September – 29,1%
January – 21,2% September – 26,4%
The report was created by VI-ORTIS LLP
THANK YOU FOR ATTENTION!