Kazakh pharmaceutical production increased three-fold between 2008 and 2012, with production amounting to KZT29.4 billion (USD192.06 million) last year.
IHS Global Insight perspective | |
Significance | Pharmaceutical production in Kazakhstan has almost tripled since 2008 and increased to KZT29.4 billion in 2012. |
Implications | In the 2012-12 period, 16 investment projects were implemented, establishing domestic production in several areas, including cardiology, anti-viral gastrointestinal, and anti-inflammatory drugs, as well as the production of syringes and disposable medical clothing. A further 14 projects are planned between 2013 and 2015. |
Outlook | The report is in line with the Kazakh government's objective of boosting the domestic pharmaceutical industry, and reflects the government's continued efforts to potentially support domestic manufacturers. |
Pharmaceutical production in Kazakhstan increased almost threefold in 2012, compared to 2008, reports Inform.kz. According to the report, last year pharmaceutical production amounted to KZT29.4 billion, compared to KZT10.2 billion in 2008. Furthermore, last year under the system of single distributor, the share of domestic manufacturers in terms of volume amounted to 67%.
In addition, during the 2010-12 period, 16 investment projects were implemented within the industry. Consequently, this has enabled the country to establish domestic production of antibiotics, cardiology, gastrointestinal, anti-inflammatory, and anti-viral drugs, as well as the production of disposable medical clothing, syringes and injection systems for infusion solutions and medical equipment, and disposable sterile vacuum tubes for the collection and storage of venous blood. Furthermore, according to Inform.kz, in 2012 around 93 Kazakh companies had "the costs associated with the promotion of their products to foreign markets reimbursed", with the total cost amounting to KZT291.2 million. Four companies – Nobel AFF, Chimfarm, Dosfarm, and Medoptika – had KZT9.4 million worth of costs reimbursed.
During 2013-15, some 14 projects are to be implemented that will enable the country to produce "tuberculosis, cardiac, diabetes drugs, infusion solutions and antibiotics, substances, and medical products".
Japanese government provides grants for social projects
Separately, the Japanese government will be providing grants to four social projects in Kazakhstan, amounting to USD110,000. According to Bnews.kz, the four projects include: repairing hospital nursing care; the acquisition of thermoplastics for vocational rehabilitation and poverty alleviation in the visually impaired; the procurement of modern diagnostic equipment and soundproof rooms for audiology cabinets; and the construction of crisis centre for women and children in difficult situations.
Outlook and implications
The pharmaceutical industry is among the sectors that fall under the country's State Program of Forced Industrial-Innovative Development of Kazakhstan during the period 2010-14, adopted by the government in early 2010. Additionally, the Kazakh government has also introduced and implemented several other programmes aimed at boosting the domestic pharmaceutical industry, as well as improving healthcare services in the country, including the government healthcare plan for 2011-15, "Salamatty Kazakhstan". The current report of a threefold increase in pharmaceutical production in 2012 compared to 2008, as well a 67% share of domestic producers in terms of volume in the system of single distribution – responsible for the purchase and provision of medications under the "guaranteed volume of free medical services" – is a positive development for the government, in particular its objective of raising the market share of domestic pharmaceutical producers to 50% by 2014.
While the reports reflects the government's continued efforts of supporting domestic manufacturers, the government's intention to improve healthcare, and access to healthcare services and drugs will potentially help to increase the demand for drugs in the country (see Kazakhstan: 12 March 2013: Kazakh pharmaceutical market expected to grow 15% in 2013).
Similarly, the various projects receiving grants from the Japanese government are also in line with these efforts to improve healthcare. The projects fall under the programme "Grassroots", introduced in 1997, under which financial aid was provided to 59 programmes, amounting to just over USD4 million.