As part of the implementation of measures to develop the pharmaceutical industry in Kazakhstan, the Single Distributor continues to hold meetings with major players in the global pharmaceutical industry, during which their long-term plans for presence in the Kazakh pharmaceutical market and issues of investing in the industry are discussed.
The single distributor takes an active position in the development of cooperation in the field of pharmaceuticals between Kazakhstan and China, initiating a number of bilateral meetings to consider ways of partnership.
The result of all previous agreements and the result of close interaction with the Chinese side was the working visit of the Kazakh delegation to China, consisting of representatives of the Single Distributor and the business community in August of this year.
During the trip, the possibilities of promoting the domestic pharmaceutical industry in the direction of technology transfer and increasing investment attractiveness were considered, and the issue of the Chinese side’s visit to the Republic of Kazakhstan was worked out.
Thus, as part of the return visit of the Chinese delegation to Kazakhstan, on September 20, a Kazakh-Chinese forum was held in Astana on strengthening coordination and business cooperation in the pharmaceutical field between the Republic of Kazakhstan and the People’s Republic of China.
2022 marks 30 years since the establishment of diplomatic relations between Kazakhstan and China. During this short period by historical standards, strong interstate ties were established
China is the most important economic partner of Kazakhstan and the potential of these relationships allows us to implement joint projects of a breakthrough level. In this regard, we are faced with the task of not only expanding trade between countries, but also developing joint ventures, in particular the implementation of projects in the pharmaceutical and medical industries, which became the main topic of the Round Table.
“Collaboration with global pharmaceutical corporations should be intensified. It is important to attract investors ensure the transfer of technologies and the latest developments. K.K.Tokaev
The People's Republic of China was represented by the Vice President of the China Chamber of Commerce for the Import and Export of Medicines and Health Products (CCCMHPIE), representatives of China Meheco Corporation, China Sinopharm International Corporation, Shanghai United Imaging Healthcare Co. Ltd., Qilu Pharmaceutical Co., Ltd., Chengdu Kanghong Pharmaceutical Group Co., Ltd., Beijing Yuanli Biotechnology Co., Ltd., Tellgen Corporation, Suzhou and Science & Technology Development Corp. and Xian Qin (Tianjin) Medical Technology Co., Ltd.
The Kazakhstan side was represented by the Committee for Medical and Pharmaceutical Control of the Ministry of Health of the Republic of Kazakhstan, the Single Distributor SK-Pharmacy LLP, the National Center for Expertise of Medicines and Medical Devices, the National Holding QazBioPharm, the National Company Kazakh Invest, and the Association PharmMedIndustry of Kazakhstan ( AFMI), as well as a number of the largest domestic producers represented by Kelun-Kazpharm LLP, Karaganda Pharmaceutical Complex LLP, Antigen Research and Production Enterprise LLP, BO-NA LLP, Nur-May Pharmacy LLP and NGO "Kazakhstan Aselsan Engineering".
The first report at the forum was made by a representative of Kazakh Invest, who presented the participants with key tools for supporting investment projects in Kazakhstan.
During the report, it was emphasized that in recent years Kazakhstan has demonstrated high investment potential by creating a favorable business climate for investors. This includes reducing administrative barriers, simplifying procedures, and improving customs and tax administration.
During the next report, a representative of SK-Pharmacy presented a brief overview of the Kazakh pharmaceutical market and the types of purchasing procedures of the Single Distributor. According to a report by the international analytical company IQVIA, the value of the Kazakh pharmaceutical market in the first half of 2023 increased by 17.1% compared to the same period last year. It is noted that the market volume for 2022 amounted to $1.5 billion, most of which is the share of the Single Distributor
The report paid special attention to measures to support entrepreneurial initiatives in the form of concluding long-term contracts for the supply of medicines and medical devices for a period of 10 years with domestic pharmaceutical manufacturers.
The speaker noted that since 2010, the volume of purchases of the Single Distributor in monetary terms has increased 9.6 times. There is an increase in the volume of savings in absolute terms by 3.7 times.
Since the creation of the Single Distributor, the total savings of funds allocated for drug provision within the budget amounted to 214.4 billion tenge.
The government of Kazakhstan places great emphasis on localizing the production of innovative drugs in order to increase the added value of the product portfolio of our manufacturers, technological re-equipment of the industry and the development of R&D centers for its own developments, thereby increasing the scientific and human resources potential of the country’s pharmaceutical industry.
To attract major players to the BigPharma industry, the Single Distributor provides a tool for concluding long-term contracts with contract manufacturing customers for 10 years, which allows localizing the production of original drugs in the country.
In order to simplify the entry of global players into the domestic market, the Single Distributor has carried out work to improve regulations, which today make it possible to localize the production of medical equipment from global brands in the country, as well as to increase the pace of development and launch of new production facilities in Kazakhstan.
At the end of the report, participants were familiarized with a guide for potential investors - Investment Guide Book, prepared jointly with Kazakh Invest for the convenience of potential investors.
Along with this, the Kazakh side presented the current procedures for registration and pricing of medicines and medical devices in the Republic of Kazakhstan, and also voiced prospects for improving the legislative framework in the pharmaceutical industry, aimed at the effective functioning of the single market for medicines and medical devices within the Eurasian Economic Space.
Participants from the Chinese side also made counter presentations, presenting the main directions of their activities and possible prospects for cooperation with Kazakh manufacturers.
At the end of the meeting, the PharmMedIndustry of Kazakhstan Association and the Chinese Chamber of Commerce for the Import and Export of Medicines and Health Products (CCCMHPIE) entered into a Memorandum of Understanding and Cooperation. The parties agreed on long-term cooperation in the field of healthcare and pharmaceuticals through the exchange of information and development of technologies, as well as joint organization of relevant events, exchange of visits and much more.
The culmination of the event was a discussion between participants and B2B negotiations between business representatives from both countries, during which participants discussed the possibility of implementing specific business cases.
Close cooperation with our southeastern neighbors will definitely give impetus to attracting foreign investment, introducing best practices in the development of the pharmaceutical industry and transferring innovative technologies from the Middle Kingdom to Kazakhstan.
For reference:
China Meheco Group Co., Ltd. is a large state-owned corporation in China operating in the pharmaceutical industry. Its activities include research and development, production, and distribution of medical products.
China Chamber of Commerce for Medicines and Health Products Import and Export (CCCMHPIE) is the largest and most credible national industry association in China dedicated to promoting international trade and cooperation in the pharmaceutical field. CCCMHPIE, which is directly affiliated with the Chinese Ministry of Commerce, brings together more than 2,400 corporations, including most of China's major manufacturers and traders of pharmaceutical and medical products.
Association "PharmMedIndustry of Kazakhstan" is an association representing the interests of participants in the pharmaceutical market of Kazakhstan, namely manufacturers of pharmaceutical and medical products.
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