• A SINGLE DISTRIBUTOR ATTRACTS INVESTMENTS IN THE PHARMACEUTICAL INDUSTRY AND THE PRODUCTION OF MEDICAL EQUIPMENT FROM THE EUROPEAN UNION COUNTRIES
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17.01.2023

A SINGLE DISTRIBUTOR ATTRACTS INVESTMENTS IN THE PHARMACEUTICAL INDUSTRY AND THE PRODUCTION OF MEDICAL EQUIPMENT FROM THE EUROPEAN UNION COUNTRIES

On January 17, a webinar was held at the site of the Single Distributor "SK-Pharmacy" to attract investment from the countries of the European Union to the pharmaceutical industry and the production of medical equipment in Kazakhstan. The webinar is organized jointly with the Benelux Chamber of Commerce.

As part of the activities carried out to support the development of domestic production of pharmaceutical and medical products, the Single Distributor SK-Pharmacy LLP takes the initiative to provide a platform for global players to enter the country from packaging to the full production cycle.

The meeting was attended by representatives of the German Embassy in the Republic of Kazakhstan Holgar Kolley and Yulia Sarzhanova, the Embassy of Portugal David Matos and Maria Kiseleva, the Embassy of Belgium in the Republic of Kazakhstan Florian L'heureux, the Embassy of Italy Emilio Sessa, the Embassy of the Kingdom of the Netherlands Dinara Amanturlieva, the Embassy of Poland Tomasz Kollat, LLC " Johnson & Johnson" Ravil Blatov, Adilet Nazarbayev and Torekhan Tolagai, as well as the Ambassador of Sweden to the Republic of Kazakhstan Eva Polano, Head of the Trade Department of the European Union Delegation to Kazakhstan Agnieszka Osiecka, Head of the Belgian Economic Delegation to the Republic of Kazakhstan Aizhan Mussakova, Market Access Manager of Bayer LLP » Erkhan Azanbayev, Vice President for Medicine - Dean of the Nazarbayev University School of Medicine Massimo Pignatelli, Director of the Service Support Department of Kazakhinvest JSC Alida Tuebekova and representatives of SK-Pharmacy.

The Embassy of Sweden in the Republic of Kazakhstan, the Embassy of Austria in the Republic of Kazakhstan, the Embassy of Slovakia in the Republic of Kazakhstan, the German Industrial Association of Optics, Photonics, the Swiss investment group «m3 Groupe Holding SA, the Economic Development Agency of the Federal Republic of Germany «Germany Trade & Invest», PA «Siemens Healthcare», the Dutch pharmaceutical company Kazorange, the Portuguese companies «Ihcare» and «Farmaka, the British-Swedish pharmaceutical company «AstraZeneca», «STADA Kazakhstan» LLP and representatives of the Ministry of Health of the Republic of Kazakhstan

In general, the number of participants in the international webinar was about 60, representing more than 10 countries of the world, of which over 20 joined online. The main issue on the agenda was the attraction of investments and the localization of innovative pharmaceutical products and medical equipment within the framework of contract manufacturing in the territory of the Republic of Kazakhstan. How it works? A foreign company manufactures medicines on a contract basis at the production facilities of a domestic agent. This mechanism was developed to support domestic producers and simplify the procedures for entering the market of original and innovative medicines, since the scheme allows BIGPHARMA brands to enter the Kazakhstani market.

Big Pharma is a group of major pharmaceutical manufacturers. This group includes 50 top companies with annual revenues of $3 billion or more.Delegating production is also beneficial for brands, in which one business generates ideas and another brings them to life. The use of contract manufacturers in the pharmaceutical industry has been on the rise for decades to reduce costs, reduce in-house capacity and expand into new markets.Pharmaceutical companies have begun to look for contract manufacturers who offer a wider range of services or those who are ready to play a more strategic and long-term role in production.

Along with this, the Vice President for Medicine - Dean of the School of Medicine of Nazarbayev University Massimo Pignatelli made a presentation on the medical and pharmaceutical cluster in Astana. In this case, an important role is played by the creation of an in vitro diagnostics training center based on the School of Medicine of Nazarbayev University, within the framework of the Framework Agreement signed by the Ministry of Health of the Republic of Kazakhstan with Roche, during a government visit to Switzerland.

On the site of the created training center, in addition to Roche, it is planned to launch educational and innovative programs with other global vendors for comprehensive advanced training and training of specialists from all over Kazakhstan. The speaker noted that the formation and maintenance of a close relationship between science, education and the current pharmaceutical production will give impetus to the development of domestic science and strengthen the scientific heritage of Kazakhstan.

Alida Tuebekova, Director of the Service Support Department of Kazakhinvest JSC, in turn, spoke about the tools to support investment projects. And Ravil Blatov, manager for commercial operations and market access to Johnson & Johnson LLC, spoke about the protection of intellectual property rights as one of the leading factors in the growth of investment attractiveness of Kazakhstan.

Also, the representatives of the Single Distributor described the process of drug provision. The main task of the drug supply system is a prompt and clear response to changes in demand, flexibility in any emergency, as well as a focus on the needs of citizens.

Providing citizens with high-quality and effective drugs has always been a priority in maintaining the health of the nation. Thanks to the built-in system, it is possible to ensure uninterrupted access of patients to safe and affordable medicines, as well as to balance the interests of all participants in the pharmaceutical market: consumers, the state and entrepreneurs involved in the pharmaceutical business.

In addition, a report was made on the activities of the Single Distributor, which provides more than 2 thousand medical organizations, and more than 5 million patients are recipients of drugs purchased by us.

In 2022, the list of purchased medicines and medical devices amounted to around 1,600 items in the amount of 796.5 million US dollars, following the results of the procurement, due to the centralization of procurement procedures, savings amounted to 57.5 million US dollars of budget funds.

During the report, also were announced statistics on the import of medicines and medical products by a Single distributor for 2022. Since the development of domestic pharmaceutical production is the basis of national drug safety and an important direction of long-term state policy, more than half of the names were purchased from domestic manufacturers. Then the leading position in the share of purchased drugs is occupied by European countries – 24%. Among European countries, most purchases are made in Austria, Germany, Poland and Latvia. The analysis showed that the smallest purchase was made in Belarus – 5 items.

According to the results of the purchase of a Single distributor, in total terms, products manufactured in European countries account for 49% of the total purchase volume or 206.6 billion tenge. The share of ten countries, which account for the largest production of innovative drugs, accounted for 47% of the total purchase of a Single distributor, where Switzerland, France and Germany are the leaders.

After listening to all the reports, the participants had a discussion, where they had the opportunity to ask questions, raise existing and potential problems, and exchange views on the announced projects.

At the end of the meeting, the parties expressed their readiness for fruitful cooperation in the development of both the domestic pharmaceutical market and beyond, and also noted the confidence that such meetings will definitely influence the solution of certain industry issues by raising topical problems.

In conclusion, the localization of the production of the world's European giants of domestic production will allow the implementation of industrial and innovative strategic programs of the sectors of the economy of Kazakhstan, and, of course, will give impetus to the development of competitiveness and potential of the country's medical and pharmaceutical industry.

Source: Press service of SK-Pharmacy LLP"
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