Third International Pharmaceutical Forum Discusses Investment Opportunities
The Third International Pharmaceutical Forum, held in Tashkent on 30 – 31 May 2024, showcased Uzbekistan’s thriving pharmaceutical industry and its attractive investment opportunities.
Industry leaders, government officials, and investors gathered to discuss the country’s favorable investment climate and the benefits of its specialized industrial parks.
Industrial Parks: Hubs for Pharmaceutical Investment
Uzbekistan has established several specialized industrial parks and free economic zones (FEZs) to support the growth of the pharmaceutical industry.
6 Pharmaceutical Free Economic Zones (FEZs) Established Across Uzbekistan
Uzbekistan has established six pharmaceutical Free Economic Zones (FEZs) in the following regions: Nukus, Zomin, Kosonsoy, Sirdaryo, Boysun, and Bostonlik.
Tax Incentives for Pharmaceutical Investors in FEZs:
- Companies operating within the pharmaceutical FEZs are exempt from paying land tax, property tax, corporate income tax (profit tax), tax on improvement and development of social infrastructure, and unified tax payment for micro and small enterprises.
- The duration of the corporate income tax exemption depends on the amount of investment made (in USD):
- $300,000 to $3 million: 3 years exemption
- $3 million to $5 million: 5 years exemption
- $5 million to $10 million: 7 years exemption
- Over $10 million: 10 years exemption, with a 50% discount on income tax and unified tax rates for the next 5 years
- Pharmaceutical manufacturers are exempt from VAT on finished goods and raw materials.
Customs Benefits for Pharmaceutical Manufacturers in FEZs:
- Exemption from customs duties (except customs clearance fees) on imported equipment, raw materials, components and construction materials not produced in Uzbekistan that are used for production needs.
- Pharmaceutical companies can import technological and laboratory equipment, components, spare parts, raw materials, medical devices and packaging materials without paying customs duties until 1 January 2025.
- For the entire period of activity in the FEZ, companies are exempt from customs duties (except customs clearance fees) on imported raw materials, materials and components used for production of export-oriented goods.
Further Benefits for Pharmaceutical Companies Operating in Uzbekistan:
- Mandatory certification is canceled for medicines produced by domestic manufacturers that have a GMP (Good Manufacturing Practice) certificate starting from 1 July 2022.
- New pharmaceutical products manufactured locally receive an unlimited period state registration certificate instead of one with limited validity.
- The government provides interest-free loans to commercial banks to finance working capital loans for pharmaceutical manufacturers at a 4% interest rate.
Government Initiatives Supporting Pharmaceutical Investment in Uzbekistan
The Uzbek government has introduced a range of incentives and support measures to attract pharmaceutical investments:
- Registration Certificate: Locally produced new pharmaceutical products receive an unlimited period state registration certificate, simplifying the regulatory process.
- Transportation Costs: The government covers 50% of transportation costs for exported pharmaceutical products.
- Registration Costs: Up to 75% of the registration costs incurred by local manufacturers in foreign countries are covered by the government.
Russian Pharmaceutical Companies to Localize Production in Uzbekistan
In a significant development for the pharmaceutical industry in Uzbekistan, several leading Russian pharmaceutical companies, including PharmEco, Pharmasintez, and Geropharm, are in advanced stages of finalizing offset contracts to localize the production of oncological and endocrinological drugs in the country.
Uzbekistan and Russia Enhance Healthcare and Pharmaceutical Sector Cooperation
During the Third International Pharmaceutical Forum in Tashkent, Uzbekistan and Russia took a significant step towards strengthening their cooperation in the healthcare and pharmaceutical sectors.
The Minister of Health of the Russian Federation, Mikhail Murashko, and the acting Minister of Health of the Republic of Uzbekistan, Asilbek Khudayarov, signed two pivotal protocols aimed at enhancing collaboration in various areas of healthcare.
The protocols outline a comprehensive framework for cooperation, focusing on key aspects such as the development of national strategies, training and exchange of medical personnel, joint scientific research, regulation of the circulation of drugs and medical products, conducting clinical trials, quality control and registration of drugs, and the introduction of innovative medical products into medical practice.
Russian National Research Medical University to Establish Branch in Uzbekistan
In addition to the protocols, the two countries have also agreed to establish a branch of the prestigious Russian National Research Medical University in Uzbekistan.
The complex, spanning an impressive 14,000 square meters, will include an educational building, a simulation center, and a dormitory with a capacity of 700 places for students and teaching staff.
Partner with Delta Medical for Successful Pharmaceutical Investment in Uzbekistan
If you’re considering investing in Uzbekistan’s pharmaceutical industry, Delta Medical is your ideal partner. With over 25 years of experience in Uzbekistan and Eurasia, Delta Medical has established itself as a leader in pharmaceutical distribution and marketing.
Delta Medical operates in countries such as Kazakhstan, Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Mongolia, Tajikistan, Turkmenistan, and Ukraine, Delta Medical has invested in its sales and marketing infrastructure in Uzbekistan, especially in the past 5 years. We are looking for partners who are interested in joining us!
With an extensive distribution network, accelerated registration services, a dedicated healthcare sales team, and comprehensive medical affairs support, Delta Medical enables pharmaceutical and medical device companies to rapidly introduce and market their products across these regions.
