Uzbekistan’s pharmaceutical sector is experiencing explosive growth in 2025. According to the analytics firm IQVIA, in September 2025, the market volume reached $204.9 million (wholesale) with 83.1 million packages of medicines sold. This is 36.4% higher in value terms and 24.1% higher in volume than a year earlier, indicating a recovery in consumer demand and a robust post-pandemic market rebound. The total annual market volume (MAT, the twelve months to September 2025) is estimated at $2.14 billion, whereas in 2018 it was about $0.888 billion. Thus, the average annual growth rate over 2018–2025 exceeded 13.4%, with acceleration in 2024–2025. As a result, the country’s pharma market has entered a phase of accelerated development, laying the foundation for further expansion in 2026.

Market Structure: Price Segments, Import Dependence, and Prescription

Shift to premium segments. The structure of pharmaceutical consumption in Uzbekistan is shifting towards more expensive medications. The share of the cheapest drugs (priced up to $1 per package) is shrinking, whereas the $1–5 and $5–10 segments are growing. At the same time, the niche of drugs priced above $10 is strengthening, reflecting a shift of part of consumer demand toward branded original medicines and complex therapies. This trend indicates qualitative market development: whereas previously inexpensive generics dominated, now an increasing share of revenue comes from innovative and imported products.

Imports and local production. Despite localization efforts, the market remains import-dependent – around 90% of sales by value are generated by foreign drugs, with a slight trend toward imports further expanding their share. As of MAT/09/2025, imported medicines have raised their value share from 87% in 2018 to 89%. Nonetheless, in volume terms, the share of local manufacturers has inched up from 40% to 41.2% thanks to the production of affordable generics. Local companies are increasing their presence in the low-price segment by competing on cost. The government is encouraging localization of production, offering incentives (for example, tax and customs benefits in pharmaceutical free economic zones) and reserving 20% of state procurements for domestic companies’ products. These measures have already led a number of foreign companies to begin setting up manufacturing in Uzbekistan.

Market Leaders: Companies and Brands

Uzbekistan’s pharmaceutical market is highly fragmented – the combined share of even the largest players is relatively small. According to IQVIA for MAT/09/2025, the top three companies by sales value are Slovenia’s KRKA, Turkey’s World Medicine, and Ukraine’s Farmak. These companies together control about 9.9% of the market, which indicates intense competition and a market crowded with numerous brands and manufacturers. Notably, the top ten manufacturers have collectively increased their share since 2018 from 24% to 27%. Among local manufacturers, the Uzbek company Nika Pharm stands out with roughly a 2.5% share, rising from 32nd position in 2018 to 7th in 2025 with a +40.4% increase in sales (in value terms). Nika Pharm has become the most dynamic player in the domestic market and the only local manufacturer in the top ten.

Competition at the individual brand level is also intense, with the leaders showing explosive growth. According to IQVIA for MAT/09/2025, Viferon (Russia) +46.2%, Rinoxil (Uzbekistan) +34.5%, and Reosorbilact (Ukraine) +63.9% are the best-selling brands in Uzbekistan, and are showing robust growth. The astonishing success of the Uzbek brand Rinoxil is particularly noteworthy – in just five years it not only entered the top ten brands, but even topped the list, overtaking Magne B6, Enterogermina, and other global brands traditionally strong in the CIS. New domestic brands are also growing rapidly – for example, the cold remedy Rinomax (+141.1% year-on-year). Such turnover among leaders reflects the market’s flexibility: new drugs can quickly capture a significant share if they meet current demand, and consumer loyalty is gradually shifting toward more effective or well-marketed products.

International Investments and Partnerships

Influx of foreign investment. In 2025, Uzbekistan is attracting substantial investments into its pharmaceutical sector, confirming the confidence of international investors. According to official data, in just January–August 2025, over $290 million was invested in the industry, of which $262.7 million were foreign investments. Companies from Russia, China, India, Europe, and other regions are involved in these projects. At the IV International Pharmaceutical Congress held in Tashkent in September, more than 20 major projects were presented – from the construction of new plants to the modernization of existing enterprises. The government emphasizes that Uzbekistan offers broad opportunities for expanding production, implementing innovations, and increasing the pharma sector’s export potential. The rapid growth of the domestic market and government support measures are creating a favorable climate that attracts foreign capital.

Localization, Standardization, and Export Potential

Tashkent Pharma Park and Industrial Clusters. The central element of the industry’s development strategy is the creation of world-class pharmaceutical clusters. The flagship project is the “Tashkent Pharma Park” innovation cluster near Tashkent, with €1.2 billion in state investment. This large complex of 1.9 million square meters will unite research centers (a biotechnology center and a pharmaceutical technical school/university), modern plants, and logistics infrastructure – all within a free economic zone offering tax incentives.

The volume of Uzbekistan’s pharma market ($2.136 billion in MAT/08/2025) has surpassed that of Kazakhstan ($1.391 billion), reflecting Uzbekistan’s larger population and growing demand. This strengthens the country’s position as the largest pharmaceutical market in Central Asia.

In the context of the broader Central Asian region, just a few years ago, Kazakhstan led in pharmaceutical sales, but Uzbekistan’s faster growth has now put it in first place. As of MAT/09/2025, Uzbekistan’s retail pharmaceutical market is 54% larger than Kazakhstan’s in value terms, with growth over 31%, whereas Kazakhstan’s market is stagnating at -2.7%. Although income levels in Kazakhstan are higher, Uzbekistan’s population is nearly twice as large, which, along with gradually rising purchasing power, has led to a faster expansion of its pharma market. This underscores Uzbekistan’s role as a new regional pharmaceutical hub. The smaller markets of neighboring countries (Kyrgyzstan, Tajikistan, and Turkmenistan) lag far behind in scale, allowing Uzbekistan to become an export center supplying the entire region.

Standardization and Regulatory Reforms. For Uzbekistan to transform into a full-fledged export-oriented hub, it must comply with international quality standards for medicines. In 2025, decisive steps are being taken to harmonize the regulatory framework with global practices, and additional measures are being introduced to regulate the circulation of medicines, including requirements for manufacturers to obtain GMP certification. From January 1, 2026, all pharmaceutical manufacturers, domestic and foreign, will be required to obtain a national GMP certificate to register their products in Uzbekistan. Without proof of compliance with Good Manufacturing Practice (GMP) standards, registering new drugs or renewing certificates will be impossible – this new requirement is intended to bring the quality of local production up to international standards. This step signals to investors that the country is serious about raising quality standards. In parallel, procedures for market entry of drugs already recognized abroad are being simplified: since October 2025, a fast-track registration mechanism has been introduced in Uzbekistan for medicines approved by regulators with high WHO status (maturity level 4 or included in WHO’s list of trusted regulators). This will allow innovative drugs from the EU, the U.S., Japan, and others to enter the market faster, avoiding duplicative procedures.

Focus of Reforms: Development of Clinical Trials and Innovation. By 2026, a strategy is planned to organize international clinical trials in Uzbekistan in collaboration with global contract research organizations. As part of this strategy, work is underway to implement GCP (Good Clinical Practice) standards and International Council for Harmonisation (ICH) guidelines into national legislation. Clinical centers and laboratories are being prepared for international accreditation, and an electronic clinical trials registry is being created.

Foreign companies note that cooperation with Uzbekistan is now viewed as a long-term strategy – not only selling finished medicines, but also creating joint products, transferring technologies, and jointly entering neighboring markets. The government underscores its focus on an export breakthrough: special emphasis is placed on developing active pharmaceutical ingredient (API) production, enhancing the competitiveness of Uzbek pharmaceutical products, and promoting them in countries of the Eurasian Economic Union (EAEU), Southeast Asia, and the Middle East. According to experts, a combination of strong domestic growth and exports could ensure double-digit growth rates for the industry in the medium term.

Conclusions and Recommendations

The pharmaceutical sector of Uzbekistan in 2025 has entered a phase of active growth and global integration. The country is confidently transforming into one of the key players in the Central Asian pharmaceutical market amid stagnation in some neighboring countries. Ties with major foreign partners – Russia, China, the EU, South Korea, India – are strengthening, bringing investments and technologies into the sector and opening doors for exports. Large-scale government investments in infrastructure, along with consistent regulatory reforms (implementation of GMP, simplification of registering imported drugs, development of clinical research), are forming the basis for turning Uzbekistan into a regional pharmaceutical hub.

At the same time, the industry faces challenges. An import dependence of 90% leaves it vulnerable to external factors – price fluctuations and supply disruptions. Accelerated localization should be accompanied by knowledge transfer: it is important that foreign partners not only repackage drugs in Uzbekistan but also train personnel and transfer know-how. There is a risk of imbalance – for instance, an excessive orientation toward Chinese standards and technologies without considering EU and U.S. requirements could limit export opportunities. Therefore, a balanced approach is recommended: diversify partnerships (China, India, Russia, EU, etc.), harmonize regulations with internationally recognized norms (ICH, WHO GMP, EMA), and maintain openness to diverse markets. It is necessary to continue investing in workforce training and science, expanding educational programs in collaboration with foreign universities and companies. Developing human capital and R&D will increase the country’s ability to create its own innovations and reduce import dependence in the long term.

For foreign investors, Uzbekistan’s pharma market now offers a unique combination of fast-growing demand and incentives. It is advisable to capitalize on the favorable investment climate: companies entering this market in 2025–2028 can secure strong positions before competition intensifies. Promising niches for investment include the production of affordable generics (to substitute imports), the introduction of modern biotechnologies (including the production of vaccines, insulins, and other complex drugs where demand is high), and the development of distribution networks in the country.

For the government and industry regulators, the key recommendation is consistency in reforms. The success of measures already adopted (incentives, free economic zones, stricter quality standards) largely depends on their effective implementation. It is essential to ensure that new requirements do not lead to medicine shortages or higher prices – a transition period and support for local manufacturers in obtaining certifications may be needed. Continuing the course of integration with the global community – joining ICH, cooperating with WHO, and active participation in Eurasian and international industry events – will strengthen Uzbekistan’s image as a reliable partner. In parallel, export infrastructure should be developed: from certifying drugs to the standards of target markets (EU, CIS, Middle East) to establishing logistics channels and marketing support abroad.

In conclusion, Uzbekistan’s pharmaceutical market in 2025 has demonstrated impressive progress. The combination of internal momentum and external openness has created a unique situation: the sector is growing on almost all fronts – volume, range of products, quality, and investments. If the country maintains its course and continues reforms, it could solidify its role in the coming years as the region’s leading pharmaceutical center, capable not only of meeting domestic demand but also of supplying medicines to neighboring states. For international investors, this is a window of opportunity, and for the republic itself, a chance to accelerate economic development, strengthen the healthcare system, and enhance its status on the global pharmaceutical map. The right strategic steps taken today will lay the foundation for the industry’s long-term success tomorrow, ensuring a balance between rapid growth and the sustainability of this crucial sector of the economy.