Cooperation with global pharmaceutical corporations should be intensified. It is important to attract investors, ensure the transfer of technology and the latest developments. It is necessary to expand the scope and range of off-take contracts with domestic manufacturers. The share of domestically produced medicines and medical products must be increased from the current 17 to 50% already in 2025.
K.K.Tokaev
To address issues related to the development of domestic production, a round table meeting was held today at the Unified Distributor site with the participation of domestic producers, representatives of the authorized body, the quasi-public sector, specialized associations, BigPharma and the expert community.
National Company JSC Center for Trade Policy Development QazTrade, KAZAKH INVEST, Export Insurance Company KazakhExport JSC, Kazakhstan Center for Industry and Export Qazindustry JSC took part in the exchange of opinions and suggestions, as well as experience. Qazaqstan Investment Corporation JSC and The Unified Distributor.
The parties told representatives of the domestic pharmaceutical industry about their state support measures and mechanisms. The goal is to inform domestic pharmaceutical manufacturers about all the privileges in the industry for the development of Kazakh production and export of products, since not all local manufacturers are aware of the current instruments and measures of state support.
“Kazakh Invest” announced import preferences and investment preferences. QazTrade presented support measures for exports and cost recovery. Continuing the topic of exports, KazakhExport shared tools for developing exports and implementing insurance tools to protect export operations. Qazindustry, coordinator of special economic and industrial zones in Kazakhstan, noted the conditions for reimbursement of part of the costs. And Qazaqstan Investment Corporation announced the financing of projects in the Republic of Kazakhstan through instruments that form the projects’ own participation.
It should be noted that the Unified Distributor provides support for the pharmaceutical industry in the form of concluding long-term contracts. At the moment, there are 94 long-term contracts concluded with 35 domestic producers for the supply of 3,947 types of medicines and medical devices.
Thus, manufacturers of medicines and medical devices in Kazakhstan have the opportunity to launch new or modernize existing production thanks to a guaranteed ten-year government order for pharmaceutical products.
In addition, to develop Kazakh production, the Unified Distributor is actively exploring the issue of localizing the production of BigPharma medicines on the basis of Kazakh manufacturers. A breakthrough result was the conclusion of long-term agreements with pharmaceutical giants Pfizer and Roche for the contract production of original innovative drugs.
One of the main priorities of the Unified Distributor is both supporting and developing domestic pharmaceutical production and increasing export potential.
The head of state has repeatedly emphasized the importance of intensifying foreign trade activities and promoting Kazakh products to foreign markets, emphasizing the need to regulate the export of basic food products to ensure the domestic market. He noted that it is necessary to continue work on diversifying the economy, expanding the range of goods produced and the geography of exports.
Active export activities and successful examples of entering foreign markets make the pharmaceutical industry more attractive to foreign investors. This could lead to increased investment in research and development (R&D), manufacturing and infrastructure.
In pursuance of the order and in order to implement the export acceleration program for Kazakh manufacturers, aimed at increasing export potential and expanding foreign trade, at the beginning of 2023, the Unified Distributor and JSC “Center for Trade Policy Development “QazTrade” entered into a memorandum of understanding and cooperation.
QazTrade is the operator of the Ministry of Trade and Integration of the Republic of Kazakhstan for the promotion of domestic processed goods to foreign countries. Cooperation involves the promotion of domestic medicines, medical products and medical equipment to foreign markets.
The parties intend to develop a partnership to create conditions for increasing the competitiveness of domestic producers, searching for potential export markets and promoting medicines, medical products and medical equipment to foreign sites. The above goals are planned to be achieved through a series of events, analysis of foreign markets, interaction with domestic, foreign and international organizations, development of recommendations for improving the legislation of the Republic of Kazakhstan, as well as the exchange of information and experience.
Previously, at the initiative of the Unified Distributor, a training seminar from QazTrade was already held to widely inform domestic manufacturers of the pharmaceutical industry on the reimbursement of part of export costs. The training included step-by-step instructions on submitting an application through the export.gov.kz portal, possible mistakes by exporters and related issues on the correct submission of applications for cost reimbursement.
A guidebook for potential investors was also presented to the attention of guests - Investment guide book, developed jointly with Kazakh Invest, which, based on the “one window” principle, provides a platform for large brands to enter the country from packaging to the full production cycle.
In general, during the round table, proposals were discussed and developed to improve the investment climate in the pharmaceutical industry. The effect of joining forces to explain all government support measures and mechanisms to domestic producers will be the dynamic development of Kazakhstan's pharmaceutical production and increasing export potential. The result will also be the formation of a positive image of domestic brands and the development of the country's pharmaceutical sector.
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