Uzbekistan Starts Drug Sector Revamp

A significant inflow of foreign investment into Uzbekistan'spharmaceutical industry has followed the August 1996 government decree on support for the sector. This has now allowed the state pharmaceutical enterprise Uzfarmprom to launch 10 concurrent projects, with investment ranging from $2.5 million to $12 million.

The Tashkent chemical and pharmaceutical facility is to be re-tooled to manufacture cold and flu medicines and polyvitamins, commencing February 1998. Bayer AG of Germany will provide up to $4.1 million in support.

The largest project is the construction of an infusion solutions factory in Karshi for the revived Uzitalmed joint venture company. This $20 million project was originally agreed by Zafarinvest and Kasio of Italy as a joint venture in 1995, but was put on ice because of funding problems and red tape. The agreement has now been revived, and a revised project envisages a plant to produce 15 million vials a year. The project may allow the country to offset up to a quarter of its drugs and medicines imports.