Tashkent, Uzbekistan (UzDaily.com) — The pharmaceutical market of Uzbekistan remains the second largest in the Eurasian region (excluding Russia), trailing only Kazakhstan.

The Uzbek market has demonstrated the fastest growth in the CIS: from September 2023 to September 2024, its volume increased by 13%, reaching 20.345 trillion soums. These figures were provided by the international analytical company IQVIA.

The main drivers of growth include a stable population increase and reforms in the sector, including a simplified drug registration system through mutual recognition procedures. This allows patients faster access to modern medicines. Retail accounts for 98% of sales, with prescription drugs making up 60–70%.

The global pharmaceutical company STADA, actively expanding in Uzbekistan, summarized the results of 2024, highlighting key achievements. In the over-the-counter (OTC) segment, the company’s sales grew by 28% in units and by 50% in monetary terms. Calcium-based drugs were the best sellers, solidifying STADA’s position in the market.

STADA is ranked among the top 3 in both the OTC and prescription drug segments.

A significant breakthrough for the company in 2024 was the launch of its first biosimilar in ophthalmology — a drug for treating wet macular degeneration in elderly patients.

“This is not only an innovative initiative for us but also an opportunity to improve the quality of life for patients,” said Bakhtiyar Khadzhimuhamedov, Head of the Uzbekistan + Kyrgyzstan sub-cluster at STADA.

STADA, remaining true to its mission of "caring for people’s health," will continue expanding its drug portfolio and strengthening partnerships with the medical community, setting new standards for one of the region’s most promising pharmaceutical economies.

Khadzhimuhamedov also noted that the company plans to register several drugs in Uzbekistan in 2025, including medications for oncology and endocrinology. Some of these have already been submitted for registration.

Arminas Mačevičius, Vice President of STADA, spoke about progress in the drug registration process. According to him, registering through standard procedures takes at least 12 months, while the mutual recognition procedure takes 3 months. “The progress is evident, but there is still room for improvement,” he added.

He gave the example of Moldova, where mutual recognition drug registration takes 10 days, allowing the population faster access to high-quality medicines.

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

Retail Dominates in Uzbekistan

As mentioned earlier, 98% of drug sales in Uzbekistan are from the retail segment, with prescription drugs accounting for 60–70%. This indicates that the population frequently buys medications directly from pharmacies.

Mačevičius pointed out that in Kazakhstan, 45% of the market is occupied by government procurement. “They launched the procurement program in 2011, gradually increasing funding and expanding the list of drugs. Now, for example, oncology patients receive full treatment at the expense of the state,” he explained.

Uzbekistan has recently begun implementing a similar program. According to Mačevičius, its implementation could happen 2–3 times faster than in Kazakhstan, particularly with the use of IT and artificial intelligence.

For the program’s effectiveness, it is crucial to introduce medical insurance and streamline the processes — from issuing prescriptions to obtaining medicines.

Pharmacy Retail: Consolidation Is Inevitable

The Uzbek pharmacy market, which is currently composed of numerous independent outlets, is moving towards consolidation. Mačevičius noted that the absorption of small chains by larger players is a natural step, as seen in Russia and Kazakhstan.

“Uzbekistan is part of the Silk Road with a unique entrepreneurial spirit. But economic logic will prevail: pharmacies will consolidate and be forced to expand their range,” said the expert.

Currently, 70% of pharmacies are independent. The introduction of Good Pharmacy Practice (GPP) standards could change the game. New requirements for service quality and range will make life difficult for small players, accelerating the shift to models where, in addition to medicines, cosmetics, dietary supplements, and medical consultations are offered.

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