The Head of State noted that the pharmaceutical industry is strategically important because it directly affects people’s health, quality of life, and the country’s economic security.
It was noted that, in recent years, broad opportunities have been created to develop the sector. In particular, over the past nine years, $1.8 billion has been invested in the industry, and 140 new production facilities have been launched. Today, more than 300 pharmaceutical enterprises operate in the country, 58 of which are directly engaged in the production of medicines.
As a result, the volume of pharmaceutical production increased 3.5 times, exceeding 7 trillion 300 billion UZS. The production of domestically manufactured medicines doubled. Pharmaceutical products produced in Uzbekistan are supplied to the markets of 55 countries. The number of jobs in the industry has exceeded 40 thousand.
Overall, the market for medicines and medical products in the country has reached about $2.5 billion.
It was emphasized that this year, responsible officials face the tasks of attracting at least $1 billion in investment into the pharmaceutical industry, increasing the share of domestically produced medicines in the domestic market to 70 percent by 2030 through improving quality and launching new capacities jointly with foreign companies, as well as bringing export volumes to $1 billion within the next five years.
Five pharmaceutical industrial zones have been established in the country, covering an area of 136 hectares, and all necessary infrastructure has been created for them. However, in some regions, these opportunities are being used inefficiently.
For example, in Jizzakh pharmaceutical zone, which covers 25 hectares, no batches of products were produced last year. A 14-hectare plot in Bostanlyk pharmaceutical zone has remained unused since 2017. It was also noted that last year, no enterprises were launched in Jizzakh and Samarkand pharmaceutical zones, while very few investment projects were implemented in the Bukhara and Khorezm pharmaceutical zones.
At the meeting, proposals from entrepreneurs in the pharmaceutical industry were also considered. In particular, the issue was raised of applying the tax incentives envisaged for pharmaceutical zones to enterprises located in regions without such zones.
The President supported this proposal and announced several new opportunities for pharmaceutical manufacturers.
In particular, starting from April 1 of the current year, new projects for the production of pharmaceutical products, as well as the cultivation and processing of medicinal plants, regardless of location, will be exempt from land tax for three years. After the launch of the project, profit tax and property tax will also not be levied for three years.
In addition, the import of raw materials, equipment, and components for producers of biologically active supplements and cosmetics will be exempt from duties. Pharmaceutical enterprises will be allowed to produce biologically active supplements on their own production lines.
Now, until July 1, a list of medicines and medical products recommended for localization will be published for entrepreneurs. For projects producing products on this list, entrepreneurs will be provided with loans in foreign currency at 7 percent.
Enterprises planning to deepen the localization of existing products will be provided with loans from the Industrial Cooperation Fund for up to 10 years at a rate of 6 percent in foreign currency and 12 percent in the national currency.
At the meeting, particular attention was also paid to attracting foreign pharmaceutical companies to Uzbekistan and establishing technology transfer agreements with them.
It was noted that almost half of the imported medicines are produced by 34 foreign companies. In this regard, it is necessary to encourage the organization of their production in Uzbekistan. Large enterprises engaged in imports were also recommended to increase their social responsibility and take the initiative to establish production of branded medicines in the country.
To stimulate this process, the royalty tax paid by enterprises for the use of foreign brands will be reduced from 20 to 5 percent.
After 20-25 years from the creation of an original drug, other pharmaceutical companies also obtain the right to produce it. Mastering such medicines makes it possible to reduce prices on the domestic market several times.
In this regard, enterprises that master the production of in-demand medicines within a year will be reimbursed for half of their technology transfer costs from the Fund for the Support and Development of the Pharmaceutical Industry.
In addition, to expand the production of the 100 most frequently imported medicines, the area of the Tashkent Pharma Park pharmaceutical cluster will be expanded by another 100 hectares.
Issues related to the export of pharmaceutical products were also considered at the meeting. Although the industry’s exports reached $220 million, only $14 million of this amount accounts for medicines.
In this regard, the importance of ensuring that enterprises operate in accordance with international standards was emphasized. Currently, all 58 pharmaceutical companies hold national GMP certificates. It was noted that their activities must now be brought into compliance with European GMP standards.
Starting June 1, 50 percent of the costs for local enterprises to obtain the Euro GMP certificate will be compensated through the Trade Promotion Fund.
At the meeting, issues related to expanding domestic manufacturers’ participation in the public procurement system were also discussed. It was noted that some enterprises are unable to supply products to government organizations because their localization levels are below 30 percent.
In this regard, entrepreneurs holding a domestic manufacturer certificate will be allowed to participate in public procurement regardless of their level of localization until September 1.
As noted, last year, more than 57 thousand types of unregistered and counterfeit medicines were identified in the country.
In this connection, the importance of drafting a bill to strengthen liability for the illegal trade of medicines and the circulation of products of questionable quality was emphasized.
At the meeting, the issue of eliminating the gap between science and production at the local level was also raised.
Today, more than 300 scientists work in six sectoral research institutes, and higher education institutions annually train nearly 1 thousand specialists. However, the introduction of scientific developments into practice remains insufficient.
In this regard, the National Research Institute of Biopharmaceuticals will be established on the basis of the institutes of chemistry and pharmaceuticals, vaccines and serums, and oriental medicine. It will be located within the Tashkent Pharma Park cluster, enabling direct integration of scientific research with production.
A preclinical research laboratory, biological and chemical research centers, and an international clinical research center with 250 places will be established in the park.
In addition, professors and lecturers of the Tashkent Pharmaceutical Institute and the Pharmaceutical Technical University will conduct their research activities on the territory of the pharmaceutical park. Students will have the opportunity to study and work at enterprises based on a dual education system.
Enterprises will be reimbursed for expenses of up to $100,000 for projects to produce new medicines in collaboration with invited scientists. Enterprises that produce new medicines developed by domestic scientists will be provided with subsidies of up to 100 million UZS to cover the costs of registration and clinical trials.
At the meeting, proposals and initiatives from representatives of pharmaceutical enterprises and reports from responsible officials were heard, and relevant instructions were given to ensure the implementation of the assigned tasks.
