Browse the complete Report on: Kazakhstan Pharmaceuticals and Healthcare Report Q4 2010
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BMI maintains its robust five-year growth forecast for the Kazakhstan pharmaceutical market, which we expect to be driven by recovering growth in the overall economy and intensified by the appreciation of the tenge, which is rebounding due to rising oil and gas exports and expectations of new production coming on line. We see a five-year compound annual growth rate (CAGR) in US dollar terms of 17.50% (12.67% in local currency terms) for 2009-2014, with total market value reaching KZT281.4 (US$2.35bn). By the end of the forecast period, per-capita drug spending is expected to have more than doubled from 2009 levels, exceeding US$140.
The most important development for the domestic industry in recent months was the government’s adoption of the Pharmaceutical Industrial Development Programme for 2010-2014. The plan is built to meet President Nursultan Nazarbayev’s April 2009 declaration that the local industry should provide for 50% of domestic demand by 2014. It includes the forward purchasing of medicines by state wholesaler SK Farmatsiya from the country’s seven largest domestic producers and aims for the industry’s commitment to meet GMP compliance standards within seven years to be met. Companies failing to meet this deadline will not be allowed to supply the country’s state-financed medicines scheme. The plan lists a number of projects as part of the country’s accelerated industrial diversification plan, which represents a mix of funding from state institutions such as Kazakhstan Development Bank (KDP) and the National Innovation Fund.
One big question mark is whether these plants will have the new capacity up and running to meet the president’s deadline. As of the beginning of this year, less than half the new production projects put forward by local manufacturers had received funding from state institutions. The domestic banking sector is still coming back to life following the crisis, with large stakes in leading banks still owned by the Samruk Kazyna state holding company. While banks such as Halyk Bank and Alliance Bank have bounced back, there is still a question of how much lending is yet available to the real economy.
Under the new plan, domestic champion Chimpharm – already responsible for most production and the bulk of exports – looks likely to remain the biggest player in the marketplace. Its plans include the building of a new factory near Astana, the first plant near the capital. The company is also building new production facilities in Shymkent with at least part of the funding provided by KDB loans. Other locals, including GlobalPharm, Nobel AFF, and Romat are reportedly planning new facilities. Still, the biggest unanswered question is whether foreign companies will proffer investment to build new facilities or buy stakes in local companies. Aside from GE Healthcare’s reported plans to launch joint work with medical device producer Aktyubrentgen, there has been little evidence of any major market entries by big players. Kazakhstan’s small population and perceived high levels of corruption remain impediments, despite a relatively straightforward working environment and membership of the Customs Union with Russia and Belarus, offering tariff-free access to these large target markets to the pharmaceutical industry.
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Browse All - Business Monitor International Market Research Reports
BMI maintains its robust five-year growth forecast for the Kazakhstan pharmaceutical market, which we expect to be driven by recovering growth in the overall economy and intensified by the appreciation of the tenge, which is rebounding due to rising oil and gas exports and expectations of new production coming on line. We see a five-year compound annual growth rate (CAGR) in US dollar terms of 17.50% (12.67% in local currency terms) for 2009-2014, with total market value reaching KZT281.4 (US$2.35bn). By the end of the forecast period, per-capita drug spending is expected to have more than doubled from 2009 levels, exceeding US$140.
The most important development for the domestic industry in recent months was the government’s adoption of the Pharmaceutical Industrial Development Programme for 2010-2014. The plan is built to meet President Nursultan Nazarbayev’s April 2009 declaration that the local industry should provide for 50% of domestic demand by 2014. It includes the forward purchasing of medicines by state wholesaler SK Farmatsiya from the country’s seven largest domestic producers and aims for the industry’s commitment to meet GMP compliance standards within seven years to be met. Companies failing to meet this deadline will not be allowed to supply the country’s state-financed medicines scheme. The plan lists a number of projects as part of the country’s accelerated industrial diversification plan, which represents a mix of funding from state institutions such as Kazakhstan Development Bank (KDP) and the National Innovation Fund.
One big question mark is whether these plants will have the new capacity up and running to meet the president’s deadline. As of the beginning of this year, less than half the new production projects put forward by local manufacturers had received funding from state institutions. The domestic banking sector is still coming back to life following the crisis, with large stakes in leading banks still owned by the Samruk Kazyna state holding company. While banks such as Halyk Bank and Alliance Bank have bounced back, there is still a question of how much lending is yet available to the real economy.
Under the new plan, domestic champion Chimpharm – already responsible for most production and the bulk of exports – looks likely to remain the biggest player in the marketplace. Its plans include the building of a new factory near Astana, the first plant near the capital. The company is also building new production facilities in Shymkent with at least part of the funding provided by KDB loans. Other locals, including GlobalPharm, Nobel AFF, and Romat are reportedly planning new facilities. Still, the biggest unanswered question is whether foreign companies will proffer investment to build new facilities or buy stakes in local companies. Aside from GE Healthcare’s reported plans to launch joint work with medical device producer Aktyubrentgen, there has been little evidence of any major market entries by big players. Kazakhstan’s small population and perceived high levels of corruption remain impediments, despite a relatively straightforward working environment and membership of the Customs Union with Russia and Belarus, offering tariff-free access to these large target markets to the pharmaceutical industry.
About Us
ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
Contact:
Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
http://reportsandreports.proarticles.co.uk/
http://reportsnreports.wordpress.com/
