Vladislav Bessarabov about Uzbekistani Pharmaceutics

Vladislav Bessarabov, head of the Eurasia strategic business unit at Bosnalijek, a pharmaceutical company with Bosnian roots, talks to Kursiv about the interest of foreign investors in the Uzbek pharmaceutical market and points to the areas that need improvement.

Entering the Market with Strengths

– Mr. Bessarabov, what strategies does your company use to strengthen its presence in Central Asian countries?

– Bosnalijek has established a strong presence in the Eurasian market over the years, and we are particularly excited about the opportunities in Central Asia’s rapidly developing pharmaceutical markets. We opened our first representative office in the post-Soviet region twenty years ago. Since then, we have successfully positioned ourselves as leaders in several segments, including over-the-counter cold medications and gastrointestinal treatments.

The recent pandemic has highlighted the importance of expanding our offerings within the prescription and hospital segments. In response to this need, we have updated our strategy to enhance and diversify our range of medications in these areas. Our experience and expertise in the sector are significant, as Bosnalijek is the largest supplier of essential medicines in Bosnia and Herzegovina and various Balkan countries. Furthermore, we proudly serve as a contract manufacturing partner for major international companies, including Roche, Eli Lilly and Servier. This reinforces our commitment to quality and collaboration in the pharmaceutical industry.

– How many products are available in pharmacies across Uzbekistan? Are you planning to expand your product range?

– We have five registered products in Uzbekistan, with our top sellers being Lizobact, Enterofuril and Stomatidin. We are focusing on developing the distribution of these medications while also planning to expand our product range to include prescription drugs shortly. We are actively researching the market to identify our products’ most in-demand categories and promising niches.

A Rising Tide Lifts All Boats

– Have you noticed increased competition in recent years from local players in Uzbekistan and the entry of foreign colleagues?

– The country’s economy is rapidly developing, with domestic manufacturers becoming more active. We are observing an improved investment climate and a growing number of jobs. Our future development in Uzbekistan will take place in a competitive environment where local companies will play an increasingly significant role.

We welcome healthy competition. As a Chinese proverb states, “A rising tide lifts all boats.” We believe that Bosnalijek will be a part of this development moving forward.

– How do you evaluate the quality control of medications and the overall regulatory framework in Uzbekistan?

– We highly appreciate the government’s recent efforts to improve the efficiency of medication quality control and safety systems. Active work is currently being carried out to establish mandatory certification for pharmaceutical companies and healthcare systems to meet Good Practices (GxP) requirements, which is set to launch on January 1, 2024. This is a significant step towards creating a modern system for supplying medications to the population.

However, several critical issues still need to be addressed for a successful transition to this system. For instance, in addition to Good Manufacturing Practices (GMP), Good Pharmacovigilance Practices (GVP) must also be implemented. This ensures collaboration between inspectors and specialists during drug registration to verify that manufacturing and quality control processes align with the drug’s registration dossier.

– How attractive do you think the pharmaceutical market in Uzbekistan is for potential clients?

– The Uzbek market is undoubtedly a priority in the Central Asian region. According to IQVIA, its value exceeds $1.5 bln, and it has developed the most dynamically among CIS countries, showing an average annual growth rate of 26% over the last three years.

Despite this impressive growth, the market has yet to become a priority for multinational corporations, as it remains relatively insignificant globally. However, Uzbekistan presents significant opportunities for small and medium-sized pharmaceutical companies, particularly for investing in local production. This includes manufacturing at both the domestic market and Central Asian exports.

Given Uzbekistan’s advantageous geographical location and strong integration into the international transport and logistics system, the country has every chance to become a notable exporter of pharmaceutical products in the region.

Side Effects

– What are the main challenges you face in your operations in Central Asia, especially the Uzbek market?

– A unified Eurasian market is particularly appealing to the pharmaceutical industry in its original formulation. The significance of establishing a unified customs and regulatory framework cannot be overstated, as it would allow companies to bring their products to market more quickly and cost-effectively.

However, the situation has its challenges. Currently, a practical working model needs to be put in place. The necessity of conducting parallel registration processes across the region spreads resources and budgets thin. Additionally, the introduction of new procedures without harmonisation among countries—such as inconsistent labelling and non-standardised packaging requirements—leads to increased costs for launching new products and manufacturing them.

The Uzbek pharmaceutical market requires improvements in its public procurement system. Such reforms would enable more accurate market assessments, ensure adequate product supply, and allow for a faster response to market demands.

We recognise the government’s commitment to addressing these current challenges in the pharmaceutical sector, as well as its understanding of the potential of this high-tech industry for economic development and improving the well-being of its citizens.

Therefore, we are prepared to actively participate in the development of the Uzbek pharmaceutical market and enhance its standards, especially by focusing on what we do best—caring for public health, which is the core mission of Bosnalijek.

President Shavkat Mirziyoyev has signed a decree outlining additional measures for the development of the pharmaceutical industry from 2022 to 2026. According to this decree, the guarantee period for medicine procurement in the republic will be extended from three to ten years from the beginning of next year.