Tashkent, Uzbekistan (UzDaily.com) -- The European Bank for Reconstruction and Development (EBRD) is stimulating the local production of pharmaceuticals in Central Asia’s most populous country, Uzbekistan, by extending a senior loan of up to US$5 million to local producer Nika Pharm. 

Nika Pharm is an established manufacturer of generic pharmaceuticals and prescription drugs for use in the treatment of common colds, and in gastroenterology, paediatrics and urology. It will use the financing to acquire specialised manufacturing equipment for capacity expansion at its principal production facility in the country’s capital, Tashkent. 

The company will also build three new warehouses with a combined storage area of around 3,000 m2 in the regional centres of Fergana, Termez and Urgench by 2023. This will allow Nika Pharm to increase the availability of its pharmaceuticals in remote regions, which are home to almost half of Uzbekistan’s population. 

Upgrading the company’s research and development function will help Nika Pharm to manufacture competitively priced high-quality medicines for the country’s rapidly growing population. Customers across Uzbekistan will welcome more competition in a market that relies heavily on imports, accounting for up to 75 per cent of domestic consumption.

Nika Pharm will also increase the range of its medicines, particularly important for a market set to grow significantly in the next five years.

To date, the EBRD has invested more than US$ 2.8 billion in Uzbekistan’s economy through 105 projects.