Uzbekistan's pharmaceutical market: growth dynamics, key trends, and STADA's strategy.

The primary driving forces behind growth have been the steady population increase and industry reforms, including a simplified drug registration system through mutual recognition procedures. This enables patients to gain quicker access to modern medications. Notably, 98% of sales are attributed to the retail segment, with prescription drugs accounting for 60–70% of the market.

The global pharmaceutical company STADA, which is actively expanding in Uzbekistan, summarized its achievements for 2024, highlighting key milestones. In the over-the-counter (OTC) segment, the company saw a 28% increase in sales in units and a 50% increase in monetary terms. The top-selling product was a calcium supplement, which solidified STADA's market position.

STADA ranks among the top three in sales within both the OTC and prescription segments.

STADA noted that the most significant breakthrough of the year was the launch of its first biosimilar in ophthalmology—a medication for treating wet age-related macular degeneration in elderly patients.

“This is not only an innovative initiative for us, but also an opportunity to enhance the quality of life for patients,” emphasized Bakhtiyar Khadzhimukhamedov, head of the “Uzbekistan+Kyrgyzstan” sub-cluster at STADA.

Remaining true to its mission of “caring for people’s health,” STADA will continue to expand its portfolio of medications and strengthen partnerships with the medical community, setting new standards for one of the region's most promising pharmaceutical economies.

Bakhtiyar Khadzhimukhamedov mentioned that the company plans to register several medications in Uzbekistan in 2025, including those for oncology and endocrinology. The company has already submitted registration documents for some of these products.

STADA's Vice President Arminas Matsevičius, discussing the drug registration process, noted the progress made in this area. According to him, registration through standard procedures takes a minimum of 12 months, while the mutual recognition procedure takes only 3 months. “The progress is evident, but there is still room for improvement,” he added.

Arminas Matsevičius provided an example: in Moldova, drug registration under the mutual recognition procedure takes just 10 days, allowing the population to access quality medications more quickly.

According to STADA representatives, there are still some gaps in legislation that government agencies and market participants are working together to address.

Retail Dominates in Uzbekistan

As previously noted, 98% of medication sales occur in the retail segment, with prescription drugs making up 60–70% of the market. This indicates that the population is increasingly purchasing medications independently at pharmacies.

STADA's Vice President Arminas Matsevičius pointed out that in Kazakhstan, 45% of the market is occupied by government procurement. “The government procurement program was launched there in 2011, gradually increasing funding and expanding the list of medications. For instance, cancer patients now receive full treatment funded by the state,” he explained.

Uzbekistan has recently begun implementing a similar program. In Matsevičius's opinion, its execution could happen 2–3 times faster than in Kazakhstan, partly due to the use of IT and artificial intelligence.

For the program's effectiveness, it's crucial to implement health insurance and streamline processes—from issuing prescriptions to obtaining medications.

Pharmacy Retail: Consolidation is Inevitable

The pharmacy market in Uzbekistan, currently characterized by numerous independent outlets, is moving towards consolidation. As Arminas Matsevičius noted, the acquisition of smaller chains by major players is a natural progression, similar to what has occurred in Russia and Kazakhstan.

“Uzbekistan is part of the Silk Road with a uniquely enterprising population. However, economic logic will prevail: pharmacies will consolidate and be compelled to expand their product range,” the expert believes.

Currently, 70% of pharmacies are independent. The implementation of Good Pharmacy Practice (GPP) standards could change the game. New requirements for service quality and product range will complicate life for smaller players, accelerating the shift towards models that sell not only medications but also cosmetics, dietary supplements, and offer medical consultations.

Economic growth and demand for quality will shape the future of the market. Large chains are strengthening their positions through innovation, while independent pharmacies will need to adapt or exit the market. Ultimately, Uzbekistan is likely to follow the path of Eastern Europe, where pharmaceutical retail is controlled by a few leaders, and pharmacies are becoming multifunctional health centers.