On March 10, 2022, the Single Distributor SK-Pharmacy held a meeting with representatives of Kazakh Invest, where plans for cooperation in the field of attracting investments to Kazakhstan were discussed.
The meeting was attended by Kazakh Invest companies Chairman of the Board - Meirzhan Yusupov, Managing Director - Azamat Kozhanov and Project Manager - Almat Zhumabayev.
The domestic pharmaceutical market today is of great interest to international investors who are looking for new opportunities in emerging markets. According to experts, Kazakhstan has the potential to double the capacity in the pharmaceutical industry. At the end of 2020, Kazakhstan was the leader in the growth of foreign direct investment. Such data are contained in the "World Investment Report" of the United Nations Conference on Trade and Development (UNCTAD).
The head of state noted the importance of cooperation with global pharmaceutical corporations, attracting investors, ensuring technology transfer and the latest developments.
As part of the work carried out to support the development of domestic production of pharmaceutical and medical products, the Single Distributor takes the initiative to provide a platform for major brands to enter the country from packaging to the full production cycle.
A Memorandum of Cooperation was signed between the Single Distributor and Kazakh Invest to attract foreign investors to the pharmaceutical industry of Kazakhstan. Within the framework of this document, the parties support initiatives on the implementation of investment projects.
In pursuance of the instructions of the President of the Republic of Kazakhstan and in the implementation of the Comprehensive Plan for the Development of the Pharmaceutical Industry, the Single Distributor, together with Kazakh Invest, prepared a guide for potential investors - INVESTMENT GUIDE BOOK. Its task is to provide a platform for entry into the country of large medicine brands, from packaging to the full production cycle, according to the policy of a one window.
Also, in order to fruitfully interact with the global pharmaceutical industry and find effective ways to localize the production of innovative pharmaceutical products from recognized brands in Kazakhstan, the Single Distributor, with the support of Kazakh Invest, held a series of round tables and webinars with India, Japan, the Republic of Korea, Italy, Pakistan, Diplomatic Astana Club, International Associations of Pharmaceutical Manufacturers of the Republic of Kazakhstan, Association of Russian Pharmaceutical Manufacturers.
At the site of the Single Distributor, meetings were held with domestic pharmaceutical manufacturers on problematic issues of production, prospects for cooperation with BigPharma, exports, development of R&D centers, amendments were made to DGRK No. 375, criteria for concluding long-term contracts. To target global pharmaceutical manufacturers, investment proposals have been prepared and work has begun jointly with the global consulting company Deloitte.
As a result of the meetings, cooperation was worked out on the localization of production in the territory of the Republic of Kazakhstan with representatives of BigPharm, who laid a solid foundation for further cooperation with such giants as PFIZER, Johnson Johnson, ERG, Astra-Zeneca, Novartis, ROCHE, Sandoz, Takeda Pharmaceutical.
Together with ROCHE, 7 projects were initiated, a Framework Agreement was signed. It is proposed to conduct phase 4 clinical trials on the territory of the Republic of Kazakhstan in the field of diabetes mellitus and obesity with the Danish pharmaceutical company Novo Nordisk. Agreements have been reached with AstraZeneca on the possibility of localizing about 5 innovative pharmaceutical molecules.
For high-quality treatment of patients, not only medicines are needed, it is important not to lose sight of medical equipment. The President of the country instructed to expand the scope and range of off-take contracts with domestic producers. The share of medicines and medical products of domestic production must be increased from the existing 17% to 50% as early as 2025.
In addition, the production of medical equipment and consumables will be actively developed. These areas are open for investment, and such projects will receive full support from the state.
Thus, measures have been initiated to localize the production of medical equipment in the Republic of Kazakhstan using the mechanisms of long-term contracts, off-take contracts, leasing mechanisms, and life cycle contracts.
Currently, a substantive study of the issues of localization of production is underway with major global manufacturers in Korea, Japan, Europe and domestic manufacturers of medical equipment.
In this regard, together with Kazakh Invest, it is planned to create a working group to attract foreign investment to localize the production of medical equipment in the Republic of Kazakhstan. As a result of this work, an advisory list of equipment for localization in Kazakhstan will be formed, which will be worked out in detail by the medical and expert community.
Following the meeting, the parties noted that the COVID-19 pandemic is becoming an additional incentive in the process of reforming and searching for ways to improve the system. New challenges should be seen as an opportunity for real and fundamental change. The ultimate goal of the efforts of the Single Distributor team and Kazakh Invest is the modern re-equipment of the Kazakh pharmaceutical and medical industry.
Reference: SK-Pharmacy LLP – is the Single Distributor of Medicines. The company procures medicines within the guaranteed volume of free medical care. The company also stores medicines, organizes logistics processes in state medical institutions. Since 2011, SK-Pharmacy has become the organizer of the medical equipment procurement purchased at the expense of the republican budget, as well as for further transfer to healthcare organizations under financial leasing.
National Company KAZAKH INVEST JSC was established to promote sustainable socio-economic development of the Republic of Kazakhstan by attracting foreign investment in priority sectors of the economy and comprehensive support of investment projects.
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