UPharma Consulting presents the latest pharmaceutical market report - "Uzbekistan Pharmaceutical Market Overview 4Q 2018" (2018 FY). The report uncovers 2016-4Q 2018 historical data of Uzbekistan pharmaceutical market trends, pharmaceutical market forecast to 2021, healthcare and epidemiology statistics.
Uzbekistan Pharmaceutical Market Overview 4Q 2018 provides essential information on the economics, pharmaceutical market, and healthcare landscape in Uzbekistan, and comprises the following:
This article is based on the "Uzbekistan Pharmaceutical Market Overview 4Q 2018" report developed by UPharma Consulting and contains short excerpts from this report. The full report is available for purchase now.
The Republic of Uzbekistan (RU) is a doubly landlocked country situated in Central Asia between the Amu Darya and Syr Darya rivers, the Aral Sea, and the slopes of the Tien Shan mountains. It is bounded by Kazakhstan in the north and northwest, Kyrgyzstan and Tajikistan in the east and southeast, Turkmenistan in the southwest, and Afghanistan in the south. The Republic also includes the Karakalpakstan autonomous republic, with its capital, Nukus. According to the International Monetary Fund (IMF), the country’s GDP amounted USD 43.3bn in 2018 (89th in the world rating).
Since its independence in Sep 1991, the government maintained its soviet-style command economy with subsidies and tight controls on production and prices. Despite ongoing efforts to diversify crops, Uzbekistani agriculture has been largely centered on cotton. Uzbekistan has been the world's fifth largest cotton exporter and sixth largest producer. Uzbekistan's growth has been driven primarily by the state-led investments, as well as export of natural gas, gold, and cotton. In 2015, Russia’s Gazprom announced it would reduce its natural gas imports from Uzbekistan, but Tashkent continued to export natural gas to China and Chinese investments in the country have substantially increased.
In 2004–2016, the Uzbekistan’s economic growth was rapid and lifted significant parts of the population out of poverty. The development of small-sized private businesses in all sectors of the economy created most of the jobs, which contributed to private income growth and poverty reduction. Increased exports of gas, gold, and copper, aided by high commodity prices, generated state budget revenues that financed large increases in investment and salaries to bolster consumption.
Being aware of the need to improve the investment climate, the government has been taking incremental steps to reform the business sector and address impediments to foreign investments in the country. Since the death of first president Islam Karimov in 2016, rhetorical emphasis on such initiatives and ostensible government efforts to seek input from the private sector have increased. The new president Shavkat Mirziyoyev has taken steps to improve ties with Uzbekistan’s neighbors and attract foreign investment by pledging to improve public administration, maintain macroeconomic stability, and reform such sectors as agriculture, finance, and banking. Uzbekistan has been one of the most dynamic economies of the Commonwealth of Independent States (CIS).
In 2017, with the drivers of the old growth model exhausted, Uzbekistan launched an ambitious program of market-oriented reforms that were unprecedented in the country’s modern history. The government has made rapid progress on implementing an impressive number of policy changes in a short period of time by initiating public service, judicial, educational, and tax systems reforms; liberalizing the foreign exchange regime followed by price liberalization measures; strengthening the independence of the Central Bank of Uzbekistan (CBU); simplifying the visa regime; improving the investment climate and business environment; initiating important reforms in the agricultural sector; scaling up anticorruption efforts; and opening a dialogue between the Government and the citizens of Uzbekistan.In Sep 2017, the government devalued the official currency rate by almost 50% and announced the loosening of currency restrictions to eliminate the currency black market, increase access to hard currency, and boost investment.
Uzbekistan's GDP grew 6% y-o-y in 2017, a lower rate than the 7.8% y-o-y growth in 2016. Sustained growth has been achieved due primarily to favorable trade terms for the country’s export commodities (copper, gold, natural gas and cotton), the government’s macroeconomic management, and limited exposure to international financial markets.
According to preliminary national accounts data released by the State Statistics Committee of Uzbekistan (UzStat), the economy expanded at a healthy 5.1% y-o-y in 2018, decelerating slightly from the previous year’s 5.3% y-o-y increase. The main reason for the decline was the protracted consequences of last year's devaluation of the sum.
An acceleration in the inflation rate softened private consumption growth, which rose only modestly in real terms during the first half of the year. Private consumption was largely supported by nominal wage growth (21.4% year-on-year) and rising remittance inflows (15%). Annual consumer price inflation stood at 17.5% in Dec 2018.
The pharmaceutical market of Uzbekistan is the third biggest pharmaceutical market in the CIS after Russia and Ukraine. With annual growth dynamics of about 8-10%, the Uzbek pharmaceutical market is among the fastest-growing markets in the CIS region.
The pharmaceutical industry started developing in Uzbekistan in 1993 with establishing of the state-owned Concern Uzpharmsanoat, uniting Uzhimpharm plant and the Vaccine scientific and production association. The development of proper legislative framework and provision of tax preferences and privileges allowed creating a favorable condition for investments and development of the pharmaceutical industry. The number of pharma companies grew from 2 in 1994 to 68 in 2002 and to 130 in 2012.
The new stimulus was given to the industry in 2017, when drug producers were freed from paying all taxes for 5 years. Also, companies, which implement projects for creation of the new production facilities and reconstruction of the existing ones have been granted an exemption from payment of all customs duties when importing technological equipment. Same year, the President of Uzbekistan issued the Order on the establishment of seven free economic zones, which would specialize in the cultivation of medicinal plant materials and their processing in special natural conditions.
In 2018, the President of Uzbekistan approved the concept of the development of the pharmaceutical industry of Uzbekistan in 2018–2022, which is aimed to resolve its key issues. The first main problem seen is the low level of investment attractiveness due to the long terms of launching drugs on the market (above 3 years, considering the development of project drawings, equipment manufacturing, installation, testing of the production technologies, etc.). The second problem is the low level of innovation and technology used in the development and production of drugs. The main objectives of the concept are the creation of state centers for preclinical and clinical trials in the RU, as well as laboratories in accordance with international standards of good clinical practices (GCP) and good laboratory practices (GLP), protection of the domestic market from unfair competition and leveling market access conditions for domestic and foreign manufacturers.
The Overview will upgrade your vision of the Uzbekistan pharmaceutical and healthcare environments by making you possible to: