WHAT THE DOCTOR ORDERED
TBY talks to Batyrbek Mashkeyev, General Director of VIVA Pharm, on the pharmaceutical sector, the importance of human capital, and joint ventures.

BIOGRAPHY
In 1996 Batyrbek Mashkeyev graduated from Almaty Medical University and then started his career in the US company Bristol-Myers Squibb as a manager of OTC products. From 1999 until 2006, he was the General Director of the Kazakhstani pharmaceutical company Viva Pharm, and in 2006 Batyrbek was elected as a Chairman of Distribution Pharm association. From 2007 until 2008 he was Chairman of the Pharmaceutical Committee in Ministry of Health of the Republic of Kazakhstan. From 2008 until today he has served as the General Director of Viva Pharm.How would you assess your business performance to date, compared with the results of 2013?
The pharmaceuticals market saw remarkable growth in 2013; however, in 2014 we are experiencing much lower growth. This year we had a devaluation of the national currency. Because Kazakhstan's market depends on imports, consumers faced a 20-25% increase in the cost of products from the pharmaceutical industry. The government is trying to control the prices, and is working with distributors to keep the price low. Right now, customers can see that their prices have started to rise. For the local products, however, prices have not changed significantly. This is the key issue in 2014.
VIVA Pharm pursues a comprehensive approach to the pharmaceutical industry: how is your logistics department contributing to your services in Kazakhstan and the broader region?
VIVA Pharm delivers new technology and products that we cannot produce in our facilities. We import injectable products and new technology that we cannot produce in Kazakhstan. Whenever possible, we produce generic equivalents locally. Barring that, we import international products from major companies. When we import, we bring new technology. However, when we make local products—our generics—we do so at a lower cost. This is in line with local government objectives, and is beneficial to the customer. Our company works with our customer's interests at heart. We sell to the Kazakhstani government-held company SK Pharma. In our country, the government hospitals receive products through this company. SK Pharma usually announces a tender every year; it buys medicines and then distributes them to hospitals.
What is the importance of human capital here?
In our country we say, “People and human resources are the most important part of the business." We are proud of our team. VIVA Pharm has an adept regulatory department that works with the Ministry of Health on approvals. To bring medicine to the market, it is necessary to submit files and samples to the Ministry of Health, and submit the product for testing and analysis. Our regulatory team brings new technology from abroad and performs the registration of our local products. VIVA Pharm sends its staff to various training sessions and to pharmaceutical exhibitions so that they can interact with the business community and learn about other markets.
Is establishing joint ventures part of your business model?
We are currently in negotiations with a number of international companies to create new joint ventures. These companies produce in their countries, and already have the experience for specific products. Our company wants to bring their products here, to Kazakhstan. The current economic environment in Kazakhstan is welcoming to foreign investors. We want them to bring their knowledge and capital to Kazakhstan, and the government will buy their products and support their local production. This is why we are inviting companies from Israel, India, and even Ukraine. Ukraine needs new markets, and its pharmaceutical producers have remarkable experience in this industry.
How would you evaluate the legislation for this sector in Kazakhstan?
I have suggested that our Ministry of Health allow pharmacies to offer generics first. This is already an established practice in parts of Europe, and it should be imported to Kazakhstan. This will mandate that the pharmacist offers generics first instead of original drugs as a way to save costs. In terms of legislation, we are in the process of establishing a Customs Union with Russia. But right now, we have different legislation. In Kazakhstan, we even have different packaging. There is both Kazakh stani and Russian packaging in this country, whereas in Russia there is only Russian packaging. To bring new products to the market here, the Ministry of Health must approve them. The next step for the Ministry of Health is to agree on one requirement.

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.
read articleInterview
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.
read articleInterview
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.
read articleInterview
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.
read articleInterview
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.
read articleInterview
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.
read articleInterview
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.
read articleInterview
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.
read article