Why is this important
The loan from the international financial institution directly affects the development of pharmaceutical production within the country. Expanding and modernizing local capacities reduces dependence on imported medicines and increases the resilience of the healthcare system. Furthermore, bringing production to GMP standards opens up opportunities for export and integration into regional supply chains.
What happened
- The Board of Directors of the European Bank for Reconstruction and Development approved a $20 million loan for the pharmaceutical company Nika Pharm.
- The funds will be used to restructure the company’s balance sheet, modernize equipment and production facilities, and improve the quality of manufactured products.
- The production process is planned to be brought into compliance with the GMP standards of the World Health Organization.
Numbers and facts
- The amount of financing approved by the EBRD is 20 million dollars.
- As a result of the project implementation, the production of generics and prescription drugs should increase by 140%.
- The project is aimed at strengthening the company’s position both in the domestic market and in the markets of other Central Asian countries.
- The initiative supports the state plan to increase the share of local production of medicines to 80%.
- In December 2021, the EBRD already provided Nika Pharm with a $5 million loan.
- Over the next four years, the company established local production of a number of drugs and became a leader in several segments of the pharmaceutical market, including anti-edema drugs.
Context
- The EBRD’s financing accelerates the company’s transition to more modern and standardized production. Increasing the volume of medicines increases competition in the domestic market and reduces the risks of shortages.
- For the state, this means promoting import substitution policies and strengthening the country’s pharmaceutical security.
- The EBRD consistently supports industrial and healthcare projects in Uzbekistan, focusing on localizing production and implementing international standards.
- The pharmaceutical sector is considered one of the key sectors for developing a non-resource economy.
