️ Uzbekistan is implementing a comprehensive set of measures to develop its pharmaceutical industry and reduce the share of imported medicines. At a meeting chaired by President Shavkat Mirziyoyev on March 5, it was highlighted that half of imported medicines come from just 34 foreign manufacturers, with three major companies holding exclusive rights to supply products from over 40 foreign pharmaceutical firms, accounting for nearly half of imports. The President called on such enterprises to take on social responsibility and, together with their foreign partners, establish production of branded medicines in Uzbekistan.
️ To encourage localization, the royalty tax (payments to foreign companies for brand use) is being sharply reduced from 20% to 5%. Additionally, half of the costs incurred by enterprises for technology transfer to establish production of high-demand medicines in Uzbekistan within one year will be compensated from the Fund for Support and Development of the Pharmaceutical Network. It was noted that localized drugs could become up to five times cheaper in the domestic market.
️ Plans were announced to expand the Tashkent Pharma Park pharmaceutical cluster. For entrepreneurs aiming to produce the 100 most imported medicines, the cluster's territory will be expanded by another 100 hectares. South Korean partners had previously proposed taking over management of 60 hectares of land attached to the pharmpark, investing $40 million in infrastructure, and attracting leading South Korean companies to the site. Officials were tasked with concluding negotiations and forming projects in biopharmaceuticals and cosmetic products worth at least $400 million.
️ To incentivize obtaining EuroGMP certification, crucial for accessing international markets, starting June 1, 50% of local producers' costs for this certification will be reimbursed from the Trade Facilitation Fund. Currently, all 58 pharmaceutical enterprises producing medicines in the country have obtained national GMP certification, but while export volume reached $220 million, only 7% of this comes directly from medicinal drugs.
️ The meeting also discussed problems related to pharmaceutical companies' participation in state procurement. 51 enterprises have obtained local product certification for 2,000 types of medicines and medical devices, but due to localization levels not reaching 30%, 16 producers are unable to supply 178 types of local products to state organizations. A similar issue was raised by 811 enterprises in various sectors—electrical engineering, food industry, textiles, and others. In this regard, until September 1, entrepreneurs with local product certification will be allowed to participate in state procurement, regardless of localization level.
️ The President criticized local officials for idle pharmaceutical zones and lack of projects. New tax incentives were also announced: starting April 1, medicine producers in Uzbekistan, regardless of location, will be exempt from land tax. After a pharmaceutical project is launched, it will not be subject to profit tax or property tax for three years.
Source: www.gazeta.uz