12.04.2022

On April 12, President Mirziyoyev held a meeting on the pharmaceutical industry development.

On January 21 this year the President of the Republic of Uzbekistan signed a Resolution on the accelerated development of the pharmaceutical industry in 2022-2026. The document defines the task of increasing the domestic production of medicines to 3 times, bringing the level of supply of the domestic market to 80% in physical terms.

The work in this direction and the state of sectoral projects were critically analyzed during the meeting.

Our country annually consumes $1,6 billion worth of pharmaceutical products. Most of this volume is imported – for almost $1,2 billion.

The indicators of production capacities in the regions are recognized as completely unsatisfactory. In the Kashkadarya, Surkhandarya, Khorezm, Bukhara and Ferghana Regions, the local producers cover only 2-5% of regional consumption.

In this regard, the Agency for the Development of the Pharmaceutical Industry has been tasked to fully restructure the work with projects. The measures were identified to study the demand for medicines and develop their production.

In particular, 34 projects for $80 million are scheduled for the current year. The responsible officials were instructed to assist entrepreneurs and take measures for the timely launch of production. The need for holding negotiations with large foreign companies and attracting their brands was indicated.

In addition, the Center for the Development of Investment Projects has prepared another 18 promising projects. The President has recommended to implement them in cooperation with companies from countries with developed pharmaceutical industries, such as India, Germany, Turkey, China, and South Korea. The credit resources for $200 million will be attracted to finance the new projects and replenish a working capital.

It was noted that most of exports falls on the city of Tashkent, Tashkent and Syrdarya Regions, while other regions are left behind. It was stated that the new projects should result in a significant increase in the export of pharmaceutical products.

The Ministry of Health and the Ministry of Finance have been instructed to organize a guaranteed purchase of 120 kinds of highly demanded medicines from local producers within 3 years.The importance to achieve a reduction in the cost of the purchase, in particular drugs for the treatment of cancer, haematological, endocrinological and virus diseases was emphasized.

At the meeting the need to support local producers was also discussed.

Currently, the list of raw materials for the production of medicines and medical equipment, exempted from the value-added tax (VAT), is approved by five agencies. It shall be defined that from now on the list will be approved by three agencies: the Ministry of Investment and Foreign Trade, Customs Committee and Agency for Development of Pharmaceutical Industry.

Besides, the expenses of domestic enterprises for obtaining a GMP certificate will be compensated by the Agency for the Development of the Pharmaceutical Industry. The funding to modernize enterprises will be carried out with the participation of the Direct Investment Fund.

The Ministry of Agriculture and regional khokims (governors) have been instructed to specialize 80 districts in growing medicinal plants and plantations.

To enhance this experience, all of the benefits and funding mechanisms provided for cooperatives and family enterprises shall be applied to the medicinal plant procurers as well.

The enterprises engaged in the recycling of medicinal plants shall be exempted from customs duties when importing raw materials, equipment and spare parts by January 1, 2025. Up to 50 % of the transportation expenses on the export of finished products shall be compensated and they will be given a subsidy of 600 thousand Uzbek soums for the water supply of plantations for each 10 hectares. Any other crops shall not be cultivated on the plantations of medicinal plants.