Kazakhstan’s pharmaceutical market to grow 15 percent in 2013 11 марта 2013, 15:24
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Kazakhstan’s pharmaceutical market will grow 15 percent in 2013 because of the increased government expenses and improvement of the country’s attractiveness for foreign investors thanks to participation in the Customs Union and elimination of the administrative barriers, Tengrinews.kz reports citing Vyacheslav Lokshin, president of the Association of Representative Offices of Foreign Pharmaceutical Producers. According to him, the total volume of Kazakhstan’s pharmaceutical market currently makes $1.2 billion and the market has been growing for several years already.
“Kazakhstan is investing a lot of money in healthcare development. The investments are nearing 4 percent of the GDP and the government is not planning to stop at that. It keeps launching new hospitals and new medical programs,” Lokshin said. Kazakhstan pharmaceutical companies are planning to occupy 50 percent of the domestic market by 2014. The medicines they produce will include antihistamines, vitamins, antidiabetic and anticancer drugs.
The expert noted that a significant growth of foreign investments had been registered. Kazakhstan's membership in the Customs Union made it an especially attractive hub for foreign investments because it gives them access to a large cumulative market of Kazakhstan, Russia and Belarus.
According to Lokshin, foreign pharmaceutical companies invested at least $100 million in Kazakhstan over the past 2 years. He reminded that during this period investors bought several production facilities in Kazakhstan and were working to increase the capacities and modernize their new companies. According to him, another $100 million are annually spent by foreign companies on holding forums, trade (medical) publications and social projects.
According to the expert, new competition after Kazakhstan’s accession into the WTO will not have much effect on the country’s pharmaceutical sector. “We have a good situation here in Kazakhstan: there is no VAT or customs duties on medicines, i.e. our costs are not very high. I think that there will be no big fluctuations of prices,” Lokshin said.
By Alisher Akhmetov