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Pharmaceuticals

Uzbekistan’s Pharmaceutical Market in 2025: Rapid Growth, Foreign Investment, and Localization

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...

Pharmaceuticals

French Pharma Giant Sanofi to Localize Production in Kazakhstan

French pharmaceutical company Sanofi, one of the world’s largest drugmakers, will localize the production of medical products in Kazakhstan. The agreement was reached following negotiations in Paris between Kazakh health Ministry officials and Sanofi representatives. Sanofi ranked tenth globally by revenue in 2024, earning $44.46 billion, according to Fierce Pharma. “During the discussions, issues related to current joint projects with Kazakhstan in the field of pharmaceuticals, the supply and production of medicines, as well as the development and implementation of innovative medical technologies were touched upon,” the ministry said in a statement. Talks also addressed broader cooperation with the French Development Agency (AFD) and Expertise France, which have been active in Kazakhstan’s healthcare sector. AFD, which opened a representative office in Astana in April, has already provided a €945,000 grant to improve medical infrastructure planning and management. Together with its subsidiary Proparco, the agency also financed a €90 million loan for the construction of a 630-bed hospital in Kokshetau. Beyond healthcare, as previously reported by The Times of Central Asia, the AFD is supporting environmental initiatives in Kazakhstan, including a joint project with France to preserve Lake Balkhash.

Pharmaceuticals

Uzbekistan’s Pharma Pivot: Strategic Gains or Growing Dependence on China

Since 2016, Uzbekistan has steadily deepened its partnership with China across multiple sectors. Energy, infrastructure, agriculture, and the digital economy have long been the pillars of this cooperation. Yet recent discussions showed that the pharmaceutical sector will be another critical area for cooperation in the long term. Much like renewable energy and critical minerals, the pharmaceutical sector is now viewed in Tashkent as a strategic domain where Chinese expertise and investment could accelerate development and add value to the domestic economy. The Compelling Logic of Partnership China's strength lies in its ability to produce high-quality, affordable medicines and distribute them globally at scale. For Uzbekistan - whose growing population and rising demand for advanced healthcare have placed pressure on its system - this makes China a natural partner. At present, the Uzbek pharmaceutical market remains heavily import-dependent: by the end of 2024, imported drugs accounted for 87% of retail sales in monetary terms and 63% in physical volume. This reliance not only exposes vulnerabilities but also highlights the untapped potential for local production. Recognizing this, Tashkent has moved to create favorable conditions for investment. The country has established specialized pharmaceutical Special Economic Zones (SEZ) such as Parkent-Pharm and Andijan-Pharm. These SEZs offer investors an attractive package of incentives, from exemptions on customs duties and VAT for raw materials and equipment, to a 20% preference in government procurement for local products. Such regulatory incentives, combined with a growing domestic market, have already begun to draw interest from Chinese pharmaceutical firms. Strategic Priorities Recently, Uzbekistan has signed a series of memorandums of understanding with Chinese firms such as Zhendong Health Industry, Guojo Medical Technology, and Langtian Pharma Group, signaling a stronger bilateral focus on the pharmaceutical sector. These agreements align closely with Uzbekistan’s strategic goal of building a robust domestic pharmaceutical industry with an emphasis on access to capital and technology, localization, and human capital development. One of Uzbekistan’s key priorities is securing access to capital and expertise. Without investment and collaboration with experienced companies, the state cannot establish modern laboratories and production facilities. In this regard, the Uzbek company, Ozwell, has signed an MoU with Zhendong Health Industry Group to jointly implement a modern pharmaceutical laboratory. The partnership involves a total investment of $9.5 million, with $4.5 million allocated toward creating a world-class laboratory facility and $5 million designated for establishing and scaling up a production complex. This agreement reflects Tashkent’s desire to tap into Chinese technical knowledge and experience, while simultaneously building domestic capacity and developing local talent in the long term. Another critical priority is the localization of drug production. By reducing dependency on imports, Uzbekistan is aiming to strengthen supply chain resilience, meet domestic demand, and create new opportunities for regional exports. In this regard, the MoU established with Langtian Pharma Group and Guojo Medical Technology is designed to investigate opportunities for domestic production while promoting technological collaboration and knowledge transfer within the pharmaceutical industry. The final priority is the development of human capital. In this regard, Uzbekistan...

Pharmaceutical Business

Tajikistan’s Pharmaceutical Sector Remains Heavily Dependent on Imports

Despite possessing vast reserves of medicinal plants, Tajikistan's pharmaceutical industry remains heavily reliant on imports. Experts are increasingly questioning why the sector has been reduced to a basic "buy-and-sell" model and what is hindering the use of the country’s natural resources. Abundant Resources, Limited Output Tajikistan is home to more than 3,500 species of medicinal plants, including licorice, mint, valerian, chamomile, motherwort, and even rare saffron. However, this natural wealth has not translated into pharmaceutical independence. In the past two years alone, Tajikistan has imported roughly $84 million worth of medicines. Currently, 67 pharmaceutical companies are registered in the country, producing around 600 types of drugs. Still, imported pharmaceuticals dominate the market. According to industry observers, the sector has evolved into a retail-focused trade, rather than a hub for research-based production. During the Soviet era, pharmaceuticals in Tajikistan were closely integrated with scientific institutions. Research institutes flourished, pharmacies compounded custom medications, and both training and quality control were rigorous. Following the collapse of the USSR, this infrastructure disintegrated. The responsible state committee was dissolved, and a previously regulated system was replaced by an unstructured market. Today, training programs are often accelerated, pharmacists’ qualifications are inconsistent, and the emphasis has shifted from treatment to sales. A Pharmacy That Heals Amid this decline, one notable exception is found in the city of Isfara, where a phytotherapy department has been established at the local hospital. Spearheaded by pharmacist Abubakr Faiziev, the department operates out of a restored facility where locally gathered herbs are used to produce traditional infusions and decoctions. Faiziev personally collects about half of the ingredients. “It is important to me that the pharmacy heals, not just sells,” he said. According to Faiziev, approximately 80% of patients return for follow-up treatment, often bypassing conventional doctors due to the perceived effectiveness of herbal therapies, a sentiment echoed even among members of the local elite. A Science in Decline Faiziev laments the erosion of scientific ambition in the country. "People now ask for business plans and guaranteed profits instead of pursuing knowledge. But science doesn’t work that way," he said. Research, he noted, has become sporadic and often relies on outdated data, with little interest from private companies in investing in innovation. Young professionals, too, are increasingly opting for commercial routes. “They prefer to open pharmacies for fast income rather than engage in research,” he explained. “There are many pharmacists now. But we must transform quantity into quality. Without passion for the profession, one cannot become a skilled expert.” The State’s Role and Untapped Potential President Emomali Rahmon has repeatedly stressed the need to develop the domestic pharmaceutical industry and better utilize Tajikistan’s natural resources. Ongoing reforms include updates to medical university curricula, the opening of laboratories, and the training of technologists and quality control specialists. Yet, experts argue that without a comprehensive, systematic strategy and active engagement from the private sector, these measures are insufficient. Faiziev advocates for the creation of a pharmaceutical technology park and the development of both the domestic...

Pharmaceuticals

Polpharma Group to Boost Pharmaceutical Production and Exports in Kazakhstan

Kazakhstan’s national investment promotion agency, Kazakh Invest, has signed a Memorandum of Cooperation with Polpharma Group, a leading pharmaceutical manufacturer in Central and Eastern Europe, the Caucasus, and Central Asia. The agreement marks the launch of a €55 million investment project in Kazakhstan by SANTO, a member of the Polpharma Group. The memorandum was signed by Azamat Kozhanov, Deputy Chairman of Kazakh Invest’s Management Board, and Markus Sieger, CEO of Polpharma Group. Over the next decade, the project is expected to create approximately 300 jobs and significantly increase domestic pharmaceutical production, particularly for medications targeting socially significant diseases such as cancer, diabetes, and cardiovascular conditions. The initiative includes the introduction of new manufacturing lines, expanded R&D investment, and the development of training programs in line with international standards. This strategic partnership supports Kazakhstan’s national goal of increasing local pharmaceutical production to 50% of domestic demand. It also aims to position the country as a regional hub for pharmaceutical manufacturing and exports. “We are aware that President Kassym-Jomart Tokayev has set a clear objective to boost local pharmaceutical output to 50%, and we fully support this vision,” said Markus Sieger. “The COVID-19 pandemic revealed the vital importance of resilient, domestic supply chains. Our goal is not only to strengthen production in Kazakhstan but to transform the country into an export hub for large regional markets.” SANTO currently holds six Good Manufacturing Practice (GMP) certificates and has successfully passed inspections by the European Union. The company is now anticipating certification under EU GMP standards, which would provide access to EU markets for both the company and Kazakhstan’s broader pharmaceutical sector. Polpharma Group continues to expand its footprint in Central Asia. In 2024, 12% of the company’s global sales came from the region, a figure that is expected to grow further. The development of a pharmaceutical hub in Kazakhstan will enhance the country’s position in both domestic and international markets. These new investments, along with the expected GMP EU certification, are set to strengthen Kazakhstan’s global pharmaceutical competitiveness, reduce reliance on imports, and improve national pharmaceutical security.

Healthcare

Kyrgyzstan Gears Toward Self-Sufficiency in Medication

Kyrgyzstan has taken a significant step toward reducing its dependence on imported pharmaceuticals with the launch of domestic medicine production at the Aidan Pharma pharmaceutical plant. The facility has begun manufacturing its first batch of essential medications, including: Paracetamol (suspensions and tablets); Ibuprofen (suspensions); Acetylsalicylic acid (tablets); and Acyclovir (tablets). The plant has the capacity to produce up to 10,000 packages of each of these medicines per day, offering an important boost to the country’s pharmaceutical industry. In late 2023, Aidan Pharma began producing medical ethyl alcohol, which is now supplied to state hospitals and pharmacies. During a visit to the plant on January 10, Health Minister Alymkadyr Beishenaliev announced plans to expand the plant’s product range to 100 items by the end of this year. He also revealed that the company intends to begin exporting its products in the future. “The plant's products meet quality standards and have a low production cost, making them more affordable compared to imported medicines,” Beishenaliev noted. The Kyrgyz government has prioritized reducing the country’s reliance on imported medications. In December 2024, the Cabinet of Ministers approved an investment agreement for a Kyrgyz-Chinese pharmaceutical project led by Standard Pharm Group. This initiative will focus on packaging pharmaceuticals and constructing a new pharmaceutical plant in Kyrgyzstan. The project, which will be implemented in two stages over five years, is expected to attract over $41 million in investment. According to Minister of Economy and Commerce Bakyt Sydykov, the plant will manufacture a range of medicines, including: Nutritional infusions; Antibacterial, anti-inflammatory, and antipyretic medications; Analgesics; Hypoglycemic treatments; and Gastrointestinal drugs. Most of these medicines are included in Kyrgyzstan’s List of Vital Medicines, a critical inventory of essential pharmaceuticals that are currently not produced domestically. The development of Kyrgyzstan’s pharmaceutical industry marks a critical shift toward self-sufficiency in healthcare. By expanding domestic production, the government aims to make essential medications more accessible and affordable for its population while fostering economic growth through investment and exports.