The pharmaceutical markets in Eurasia are on the rise, with retail leading the charge, accounting for 58% of total sales. Rx products dominate, making up 60-70% of all sales and underscoring their vital importance in the region.
Get the latest insights on the performance of Kazakhstan, Uzbekistan, Belarus, Armenia, Azerbaijan, Georgia, Moldova, and Mongolia in the first half of 2024 in IQVIA’s comprehensive report.
Stay ahead of the curve! The Eurasian Pharmaceutical Summit that will take place in Tashkent and online on the 17th – 19th September will spotlight development trends across Central Asia, the Caucasus, and Eastern Europe. This is your final opportunity to join the region’s top pharmaceutical conference!
Pharmaceutical markets in Central Asia have shown impressive growth in the first half of this year, according to Proxima Research. Kazakhstan and Uzbekistan, in particular, posted double-digit growth in monetary terms, highlighting their strong potential for continued expansion.
📊 Key Market Trends:
In Kazakhstan, the retail sales volume of pharmaceuticals and dietary supplements amounted to 371 billion KZT (+22% in monetary terms), while in Uzbekistan, it reached 12 trillion UZS (+22.2% in monetary terms).
Both markets remain import-dependent: the share of imported drugs in Kazakhstan and Uzbekistan exceeds 80%.
The average weighted cost per package of pharmaceuticals increased by 8% in Kazakhstan and nearly 30% in Uzbekistan, reflecting a shift in consumer preferences towards more expensive drugs.
🏢 Outlook and Conclusions: The pharmaceutical markets of Kazakhstan and Uzbekistan continue to grow, attracting the attention of investors and international companies. The governments of these countries are taking steps to reduce import dependence and stimulate the localization of production, which contributes to the creation of a more sustainable pharmaceutical market.
📌 Read the full material on our website to learn more about current trends, key players, and development opportunities in the pharmaceutical markets of Central Asia!
Proxima Research is the Analytical Partner of the Eurasian Pharmaceutical Summit 2024 that will be run by the Global Pharmaceutical Leaders’ Club in Tashkent and online on the 17th – 19th September. Join us to discuss the latest trends in the development of pharmaceutical markets in Central Asia, the Caucasus and Eastern Europe. Details about the summit are here: https://eurasianpharmasummit.com/en/
As the Eurasian Pharmaceutical Summit approaches, Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club, met with Anastasia Kruglova, CEO of IQVIA in Russia and Eurasia. With IQVIA as a long-standing summit partner, their discussion delved into global pharmaceutical market trends, their impact on Eurasian markets, market potential, challenges for pharma companies, and the evolving role of analytics. Join us on September 17-19 in Tashkent and online!
IQVIA is a global leader in advanced analytics, technology solutions, and contract research services for healthcare and life sciences. With cutting-edge data processing and analysis methodologies backed by global standards and local expertise, IQVIA offers a comprehensive suite of tools to analyze every segment of the pharmaceutical market.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club:
What global trends are shaping pharmaceutical markets, and how are they impacting Eurasian countries?
Anastasia Kruglova, General Manager, IQVIA Russia and Eurasia: One of the most significant trends we’re observing is the focus on budget savings at the state level. After the substantial financial commitments made for COVID-19 treatment, many developed countries are now experiencing minimal growth in monetary terms. This shift has driven pharmaceutical companies to actively seek new markets and opportunities, including countries in the Eurasian region.
Another key trend is the increased investment in innovation. We’re seeing a surge in the development of new molecules, especially in therapeutic areas like oncology, neurology, and immunology. A growing focus on treating obesity has also emerged, as it’s increasingly recognized as a precursor to numerous cardiac and neurological diseases. Currently, more than 20-30 new molecules are being studied specifically for obesity treatment.
However, launching new products has become more challenging. The days when we could expect a new blockbuster drug each year are behind us. Economic slowdowns, coupled with the lingering effects of the pandemic, have left doctors fatigued and many patients underdiagnosed. To successfully introduce new products, pharmaceutical companies now need to be more creative in how they engage with doctors, patients, and governments.
Lastly, the integration of artificial intelligence is revolutionizing the pharmaceutical industry. AI is being utilized extensively in forecasting, drug development, and diagnostics, leveraging vast datasets from patient treatment records. Looking ahead, we anticipate the adoption of AI in the Eurasian markets as well, further transforming the landscape.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club:
What are the main differences between the Eurasian markets and global markets?
Anastasia Kruglova, General Manager, IQVIA Russia and Eurasia: One of the key differences is the development of reimbursement systems. In the Eurasian markets, the absence or minimal level of patient coverage for essential drugs – those that are state-compensated – is a significant barrier to market growth. The quicker and more broadly the state implements reimbursement programs, the more willing pharmaceutical companies will be to expand their product portfolios, invest in local production, and build factories in the region to serve all Eurasian countries.
Globally, the top five markets – the USA, China, Japan, France, and Germany – dominate, accounting for about 60% of all drug sales, showcasing a staggering concentration. However, the population distribution globally is different. We are optimistic that the Eurasian cluster will evolve in this direction, ensuring that all necessary drugs become accessible to patients, either through affordable purchases or state provision.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club:
Which markets are of greatest interest today?
Anastasia Kruglova, General Manager, IQVIA Russia and Eurasia: Today, nearly all analysts focus on two key indicators when assessing a country’s potential: population size and purchasing power. By combining these factors, we identify three standout markets: Kazakhstan, Uzbekistan, and Azerbaijan. In addition, companies are increasingly turning their attention to Georgia and Armenia as emerging opportunities. While the markets of Tajikistan and Turkmenistan are more complex, they still draw significant interest from pharmaceutical companies, with many of our clients seeking entry into this region.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club:
The lack of accurate data has long been seen as a barrier to the development of Eurasian markets. What trends are you observing in this area, and what steps should all market players take to improve data quality and market transparency?
Anastasia Kruglova, General Manager, IQVIA Russia and Eurasia: The improvement of data quality and market transparency is a natural progression in the evolution of the healthcare system. As the state’s ability to provide citizens with high-quality medicines and timely medical care grows, so does the need for accurate data and comprehensive analytics.
The issue of data opacity isn’t due to errors in how we extrapolate or process information – our methods are consistent globally, and IQVIA is recognized as the gold standard in this field. The challenge lies in the availability and granularity of the data, which depends on the contributions of key market players, such as the state, pharmacy chains, and distributors. As the well-being of citizens improves and the economies and healthcare systems of these countries continue to develop, I am optimistic that the quality of data will progressively enhance each year.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club:
What challenges do pharmaceutical companies face in the Eurasian markets, and how do your products help address them?
Anastasia Kruglova, General Manager, IQVIA Russia and Eurasia: One of the primary challenges we encounter – and frequently hear about from our clients – is the need for in-depth market analytics. To make both strategic and tactical decisions, companies must have a clear understanding of their current position and future expectations. This includes grasping the competitive landscape, as well as the needs of stakeholders, such as doctors, patients, and government entities.
Additionally, evaluating the return on investment in various activities, such as the work of medical representatives and product portfolio management, is crucial. Companies need to assess the potential for portfolio development and set future goals with well-defined KPIs while tracking progress.
IQVIA excels in providing the essential data needed for these tasks. We offer comprehensive consulting projects focused on new product discovery, portfolio strategies, medical representative analysis, and market development in other countries to introduce best practices. Our technological solutions, such as platforms for collecting consents and creating internal GPT chat systems based on company data, are highly effective. As a market leader, IQVIA delivers 360° solutions to address nearly all aspects of the pharmaceutical industry.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club:
IQVIA has been a partner of the Eurasian Pharmaceutical Summit for several years. How does this event benefit your company?
Anastasia Kruglova, General Manager, IQVIA Russia and Eurasia: Undoubtedly, first of all it’s a dialogue. We appreciate the opportunity to plan in advance and share new ideas and insights. It serves as a valuable platform where representatives from various healthcare organizations, distributors, pharmacy chains, health ministries, and pharmaceutical companies converge. For us, it’s a prime opportunity to engage with a diverse audience, discuss growth opportunities and challenges, and align on industry trends. It helps us assess our current position, gather feedback, and strategize for future growth.
In the lead-up to the Eurasian Pharmaceutical Summit, set for September 17-19 in a hybrid format with an offline part in Tashkent, Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club, met with Viktoriya Spivak, Commercial Director of Proxima Research International.
Proxima Research is the Analytical Partner of 2024 summit. In the interview, Viktoriya discussed global and Eurasian pharmaceutical market trends, approaches to data collection and analysis in Kazakhstan and Uzbekistan, and Proxima’s plans for geographic expansion and product portfolio growth.
For over 25 years, Proxima Research has been a key supplier of technological innovations, analytical data, and services to pharmaceutical companies. Their products are available in more than 50 countries, with offices in Kazakhstan, Uzbekistan, Ukraine, the USA (Florida) and Europe (Bratislava).
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club: What trends does Proxima Research observe in global pharmaceutical markets, particularly in Europe, Latin America and the Eurasian region?
Viktoriya Spivak, Commercial Director of Proxima Research International: A common challenge across all markets is the increasing difficulty in reaching healthcare professionals due to their growing workloads and access restrictions. Pharmaceutical companies must become more useful to healthcare workers, utilizing available time efficiently and providing valuable support through the right channels at the right time.
Trust in the pharmaceutical industry is eroding worldwide, partly due to the behavior of some companies. To counter this, pharmaceutical companies need to become experts, trusted consultants, offering content based on clinical studies and recommendations that are relevant and easily accessible to healthcare professionals.
As pharmaceutical companies develop at a different speed, expand their product portfolios and introduce complex new medicines, it’s increasingly challenging to be the expert conveying this information. Personalized, omnichannel communication is crucial, and the role of Medical Science Liaisons is growing globally.
The rapid pace of development means that data collected by pharmaceutical companies quickly becomes outdated. Keeping data relevant is a crucial trend.
All business processes, including those in the pharmaceutical industry, now involve artificial intelligence to varying degrees. AI applications in pharma are diverse, including audio and photo content recognition, comparing pharmacy display photos with planograms, and text recognition. It’s becoming common for AI to conduct phone interviews during research, using human-like voices. Multilingual AI is crucial for global corporations to ensure processes are understood by headquarters and supported in local languages.
AI’s role in updating data, segmentation, and audience targeting is significant. Previously, targeting was based on potential and loyalty, but now AI processes vast amounts of data, incorporating behavioral characteristics like social media activity and interests. This enables more accurate audience segmentation and targeting.
Differences across countries in Eurasia stem from varying mentalities, traditions, and socio-cultural, political, economic, regulatory, and social factors. For example, while Medical Science Liaisons are common in Europe and America, they are not yet prevalent in Eurasia. Different KPIs and recruitment approaches exist, and while Eurasia may soon adopt these practices, there are still regulatory and economic factors influencing market trends. Despite some restrictions on visiting doctors in Eurasian countries or pharmacists in some European countries, these challenges encourage finding alternative communication channels.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club: In recent years, experts have flagged market measurement and data analytics as key challenges in the Eurasian markets. Do you see any progress in this area, and what changes are needed to enhance the accuracy of analytical data?
Viktoriya Spivak, Commercial Director of Proxima Research International: Let me highlight what our company offers and why our data is reliable and essential for making business decisions in the pharmaceutical market. In Kazakhstan and Uzbekistan, we conduct comprehensive pharmaceutical market audits and collect tertiary sales data directly from pharmacies – what we call Sell Out data. This data provides an accurate and complete picture of sales and real product consumption, offering a significant competitive advantage, especially in Uzbekistan where we are the sole providers of such data.
In Kazakhstan, we’ve been using this tool since 2018, sourcing data from pharmacy chains and fiscal data operators. Over the past two years, we’ve significantly improved the quality of this data by increasing our direct data sample to cover 70% of all points, with only a small portion extrapolated. We ensure data quality through rigorous statistical processing. Additionally, we’ve enhanced the frequency of updates; we now offer weekly data reports available just eight days after the period ends, compared to monthly reports previously.
For Uzbekistan, we’ve recently launched the only tertiary data product for pharmacy sales, starting in early 2024 with historical data from January 2023. This allows for dynamic period comparisons crucial for business decisions. Currently, we provide monthly data but are working towards more frequent updates.
Another innovation we’ve implemented is delivering analytics through the advanced Power BI platform. This provides standardized data formats, interactive visualization, and seamless integration with PowerPoint, allowing real-time data updates during presentations. This option is available in both Kazakhstan and Uzbekistan.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club: What are Proxima Research’s priorities today in terms of geographical expansion and product portfolio development?
Viktoriya Spivak, Commercial Director of Proxima Research International: Until 2021, we were mainly a regional player in the CIS markets. That year, we decided to internationalize and expand our business. In 2022, we launched operations in the USA. In 2023, we introduced Proxima Cloud CRM, a key product we’re scaling globally. This includes a comprehensive ecosystem with a database and modules to boost employee efficiency worldwide, featuring tools for territory management and more. We’ve refined this product, secured a trademark in the USA, and protected it with copyrights for global sales.
In early 2024, we partnered with Amazon Web Services, offering Proxima Cloud CRM in multiple countries. Now, you can purchase and deploy it via Amazon in just hours. Amazon guarantees our product’s security, technological edge, and compliance with all legal requirements. As we scale, we’re focusing on technological solutions, data analysis, and retail audits. It’s about our plans for Europe, the USA, and Latin America.
For our established markets, our strategy is to enhance data quality, expand services, and improve existing products in Kazakhstan, Uzbekistan, and other Eurasian countries.
Vladislav Bessarabov, Head of Strategic Business Unit Eurasia at Bosnalijek, gave an interview to Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club at the Kazakhstan Pharmaceutical Forum. He outlined Bosnalijek’s development priorities in the Kazakhstan market. Bosnalijek has been actively participating in the Global Pharmaceutical Leaders’ Club conferences for several years and will be the “Pharmaceutical Partner” of the Eurasian Pharmaceutical Summit 2024, set to take place in Tashkent and online on the 17th – 19th September.
Natalia Baeva, Director, Global Pharmaceutical Leaders’ Club: What challenges does your company face today in the Kazakhstan market?
Vladislav Bessarabov, Head of Strategic Business Unit Eurasia, Bosnalijek: We have healthy ambitions to participate more actively in the Kazakhstan market and to develop our portfolio both quantitatively and qualitatively. We aim to independently manage the marketing of our products in Kazakhstan, focusing on our prospects for 2024 and beyond.
There are regulatory challenges related to registration activities in the market, including supranational registration procedures within the EAEU and price regulation. These are tasks we need to address with regulatory authorities, and I am confident we will overcome them.
Natalia Baeva, Director, Global Pharmaceutical Leaders’ Club: How do you benefit from participating in the Global Pharmaceutical Leaders’ Club conferences?
Vladislav Bessarabov, Head of Strategic Business Unit Eurasia, Bosnalijek: The Kazakhstan Pharmaceutical Forum is a unique opportunity to collectively listen to each other, exchange opinions, and discuss one-to-one with colleagues and partners in the supply chain the business tasks we set for ourselves in each country. The word “balance” was mentioned many times at the conference, highlighting the necessity to find equilibrium in these direct discussions to ensure the interests of manufacturers, distributors, pharmacy chains, consumers, and government authorities. This dialogue helps us communicate with colleagues, clear up misconceptions, and find the right path to successfully implement our strategy as a manufacturer.
In the first quarter of 2024, the largest pharmaceutical markets in Central Asia grew: Kazakhstan’s retail market increased by 5%, and Uzbekistan’s by 8%. These insights come from Proxima Research, the Analytical Partner of the 5th Eurasian Pharmaceutical Summit which will be held by the Global Pharmaceutical Leaders’ Club on the 17th – 19th September in Tashkent and online.
Proxima Research’s report offers an in-depth look at the development trends of the pharmaceutical markets in Kazakhstan and Uzbekistan. It covers the various reforms implemented in these countries and highlights the aspects of promoting drugs in these markets.
Proxima Research has been creating healthcare products and services for over 25 years, helping clients reach new heights of business efficiency. Their impressive portfolio includes partnerships with over 300 clients in 40 countries. The company provides expert solutions in market data, CRM / ETMS integration and support, HCP / HCO database management, omnichannel marketing, BI solutions, market research, and consulting, with a special focus on pharmaceutical business development.
The Eurasian Pharmaceutical Summit will delve into the development trends of the pharmaceutical markets in Central Asia, the Caucasus, and Eastern Europe. Analytical data provided by the summit partners, including Proxima Research, will equip attendees to identify new growth opportunities and refine their strategic direction.
Global Pharmaceutical Leaders’ Club is pleased to announce Proxima Research as the “Analytical Partner” for the 2024 Eurasian Pharmaceutical Summit taking place in Tashkent and online on the 17th -19th September!
With 25+ years of expertise, Proxima Research elevates business performance in healthcare. Company’s portfolio boasts 300+ partners across 40+ countries.
Proxima Research delivers expert solutions in market data, CRM/ETMS integration, HCP/HCO database management, omnichannel marketing, BI implementation, and market research. Specializing in pharmaceutical business development, Proxima Research is a go-to partner for success for every player in this sector!
The Global Pharmaceutical Leaders’ Club is pleased to announce that IQVIA has become the Partner of the Eurasian Pharmaceutical Summit 2024.
The Eurasian Pharmaceutical Summit is the only conference gathering all the major stakeholders of the pharmaceutical markets in the countries of Central Asia, the Caucasus and Eastern Europe.
IQVIA is a global leader in healthcare analytics and pharmaceutical research. The company provides unique data and insights that aid in making informed decisions within the industry. Its mission is to contribute to improving patient health and well-being by supporting innovations and optimising clients’ business processes.
At the Eurasian Pharmaceutical Summit, cutting-edge market data from the Eurasian region will be unveiled, empowering participants to make sharp, informed decisions.
Global Pharmaceutical Leaders’ Club announces that AstraZeneca has joined the Eurasian Pharmaceutical Summit 2024 as a Pharmaceutical Partner.
AstraZeneca stands at the forefront of the biopharmaceutical industry, driven by a commitment to science and innovation. With its headquarters in the UK, this global powerhouse is dedicated to discovering, developing, and commercializing prescription medicines in oncology, rare diseases, and various biopharmaceutical sectors, including cardiovascular, renal, metabolism, respiratory, and immunology. Operating in over 100 countries, AstraZeneca’s trailblazing treatments improve the lives of millions of patients around the world.
Maria Shipuleva, Head of AstraZeneca’s Representative Office in Kazakhstan shared the company’s priorities in the country with Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club. They discussed the company’s direction in Kazakhstan and ways to enhance market regulation efficiency to expand patient access to innovative medicines. The interview was taken at the Kazakhstan Pharmaceutical Forum. AstraZeneca will participate in the Eurasian Pharmaceutical Summit, which focuses on market trends in Central Asia, the Caucasus, and Eastern Europe. The dialogue with regulators from various countries, including Kazakhstan, will continue at the summit.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club: What trends do you see in the Kazakhstan market and what priorities do you set for your company in the current conditions?
Maria Shipuleva, Head of AstraZeneca’s Representative Office in Kazakhstan: In 2023, AstraZeneca’s workforce in Kazakhstan more than doubled, and we entered 2024 with a robust team of 200 employees. However, we are not stopping there; growth remains our focus. To solidify our presence, we registered an LLP in September 2023, paving the way for long-term collaboration with the state and various market associations. In 2024, we will transition to full-fledged LLP operations, including opening our own warehouse to reduce logistics dependency and ensure reliable medicine supply.
2023 underscored the importance of innovative healthcare in Kazakhstan, with numerous regulatory documents signed to boost the presence of innovative companies. A key focus is contract manufacturing within Kazakhstan, and we are already progressing towards this goal. We aim to sign a contract manufacturing agreement this year to start technology transfer and local production by 2025 – an ambitious but achievable timeline.
We are also initiating steps to include patients in Kazakhstan in clinical trials, marking the first time local patients will participate in phase 3 trials. Additionally, we plan to launch at least four real-world evidence studies in 2024.
Expanding cooperation in diagnostics is critical for us. We have a longstanding commitment to oncology and orphan diseases in Kazakhstan, and we are poised to increase our contributions in these vital areas.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club: As an innovative company, what improvement opportunities would you discuss with regulators? Where do you see potential in Kazakhstan to make medicines more accessible to patients?
Maria Shipuleva, Head of AstraZeneca’s Representative Office in Kazakhstan: We would like to keep strengthening the dialogue between business and government in Kazakhstan. While this dialogue is ongoing, closer cooperation is essential. Regulation here is evolving quickly, so we must focus on upcoming changes over the next few years. Our industry is particularly concerned about the harmonization of pharmaceutical drugs registration certificates. We as an industry faced challenges with document compliance in the past, so we need clear communication to minimize the risk of medicines shortages.
Another urgent matter is the labeling of unregistered pharmaceutical drugs, which could hinder access for orphan patients, especially minors. It’s crucial to ensure these essential medicines can be imported without unnecessary hurdles.
Natalia Baeva, Director of the Global Pharmaceutical Leaders’ Club: What were your takeaways from the forum? How does your company benefit from participating in such gatherings?
Maria Shipuleva, Head of AstraZeneca’s Representative Office in Kazakhstan: Your platform facilitates vital communication between industry and government bodies, enabling us to exchange experiences, expectations, and concerns. Without such forums, our opportunities for dialogue would be limited. It’s crucial for us to hear the regulator’s position and understand the approach. Equally important is for the regulator to grasp the intricacies of doing business, including not just long-term strategy but also specific proposals for smoother collaboration with the industry.
With participation from both innovative companies and manufacturers of dietary supplements and generics, these forums offer a unique opportunity to collaborate on long-term regulatory improvements. Together, we can explore avenues to enhance regulation for the benefit of all stakeholders.
