CURE FOR YOUR ILLS
The growth of both pharmaceutical production and manufacturing in the country is creating both new opportunities and new challenges for the sector, and both local and global industry leaders are interested in the market.
Kazakhstan has the most stable political and investment favorable climate in the region. Around 4% of the country's GDP is spent on healthcare, and there is a growing pace of state investment in the healthcare sector. The overall vision for the health system is reflected in the State Health Care Development Program for 2011–2015 and the Strategic development plan of the Republic of Kazakhstan till 2020. One of the targets of the 2020 development program is to raise life expectancy from 62-63 to 73: this is a good target and could be achieved given certain special health care reforms, which should concentrate on the prophylaxis of disease, which includes immunization of the population.
Our main business lies in the distribution of medical supplies. We have reached certain success in this area and can call ourselves the number one distributor on Kazakhstan market. At the moment we are working on a vertically integrated structure for our company, aimed at our presence on all the sectors of pharmaceutical business, from manufacturing to retail. Our project for manufacturing of medical supplies is in the process of its realization, and we hope to start the validation of a manufacturing system next year. Our structure also includes a retail company. In two years, we are planning to double the number of our pharmacies and complete the project of a national retail network. At the moment we boast the largest branch network in Kazakhstan.
Kazakhstan has become attractive to the pharmaceutical industry companies that decided to start manufacturing here. There is real support from the government for local producers of pharmaceutical products, meaning that they do not have to pay certain taxes. If you export your products to another country, there may be some problems, as the firms are strongly encouraged to sell their products to the state. SK Pharmacy is the sole distributor for the Ministry of Health, and has signed a contract with local producers, which will last seven years. Several major international companies were established in Shymkent and Almaty, and there are Russian producers working out of Karaganda. This segment will continue to expand as Kazakhstan has committed serious investment to pharmaceutical manufacturing and the pharmaceutical business. For us, and for other pharmaceutical companies, Kazakhstan has become attractive. In all of Central Asia, only Kazakhstan has a comprehensive reimbursement program. We have a number of high-tech products in pharmaceuticals, oncology, and other areas.
Getz Pharma's mission is to develop, produce, and market safe, effective, and quality medicines that will improve the health and quality of life of men, women, and children. As a new company, we registered only 11 products in Kazakhstan. Now, our business is worth more than $2 million per year in Kazakhstan. Our tender business has been growing from year-to-year, but last year's devaluation has influenced our business, of course. Moreover the government is also giving priority to local manufacturers for tenders which is understandable, but our strategy is to deliver more and more modern and effective medications to a Kazakhstan reimbursement system with reasonable prices. We offer products for diabetes, cardiovascular diseases, bronchitis, asthma, allergy, and obesity. We also have antibiotics. The retail market is oriented towards American and Western European companies. The culture is that whatever is manufactured in Europe is estimated as the top-class. Now, according to changing situations, people cannot afford to buy only innovator's brands, and people prefer to buy generics from Eastern Europe, Russia, and Belarus.
CURE FOR YOUR ILLS
TABLE OF CONTENTS
Interview
Doris Bradbury, Executive Director, American Chamber of Commerce (AmCham)
TBY talks to Doris Bradbury, Executive Director of the American Chamber of Commerce (AmCham) in Kazakhstan, on promoting economic reform, engendering government-private sector cooperation, and creating space for international investment.
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Bolat Zhamishev, Chairman, Development Bank of Kazakhstan
TBY talks to Bolat Zhamishev, Chairman of the Board of the Development Bank of Kazakhstan, on Nurly Zhol, the role of non-energy investment in the new economic policies, and collaborating with international financial institutions.
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Azamat Bektybayev, Vice-President Of Operations, Eurasian Resources Group (ERG)
TBY talks to Azamat Bektybayev, Vice-President of Operations of Eurasian Resources Group (ERG) on new exploration projects, accommodating market shifts, and cost saving measures necessitated by lower commodity prices.
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Farrukh Makhmudov, Chairman of the Board Group of Companies, Autodom
TBY talks to Farrukh Makhmudov, Chairman of the Board Group of Companies “Autodom," on the nuances of the local car market, packaging offerings, and competing with a slew of new companies entering the market.
read articleForum: Aviation Industry
Onwards and Upwards
Kazakhstan's air transport sector is developing rapidly and expanding throughout the country's vast territory. A growing number of air services have arisen to meet the rising need. TBY talks to some of the most influential players in the market to understand these rapid developments.
read articleReview: Construction
Concrete Growth
While ongoing external developments associated with decreasing oil prices, the domestic currency devaluation, and a falling Russian ruble could impact the construction industry in the short term, overall the sector looks healthy and set to grow steadily in the coming years.
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Asylzhan Mamytbekov, Minister , Agriculture of the Republic of Kazakhstan
TBY talks to Asylzhan Mamytbekov, Minister of Agriculture of the Republic of Kazakhstan, on ensuring optimal utilization of agricultural land, enabling farmers to succeed and grow, and the sectors investment climate.
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Tamara Duisenova, Minister , Health and Social Development of the Republic of Kazakhstan
TBY talks to Tamara Duisenova, Minister of Health and Social Development of the Republic of Kazakhstan, on the Salamatty Kazakhstan program, developing the health sector, and expanding access to care.
read articleForum: Hospitals and Clinics
Toast of the Town
Ensuring access to quality medical care is a challenge in a country where large distances often separate patients from the right care, and where the economy is still developing. The solution in Kazakhstan is government incentives, and the private sector's response.
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HE Aslan Sarinzhipov, Minister , Education and Science of the Republic of Kazakhstan
TBY talks to HE Aslan Sarinzhipov, Minister of Education and Science of the Republic of Kazakhstan, on developments in the education sector, and encouraging scientific research and publication.
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Farrukh Makhmudov, President, Eurasian Technological University (ETU)
TBY talks to Farrukh Makhmudov, President of the Eurasian Technological University (ETU), on the rapidly developing programs, cooperative education with international schools, and making sure that students graduate with real-world skills.
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