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Perspectives of the Armenian Pharmaceutical Industry. Armen Aghayants Executive Director Union of Medicine Producers and Importers. Who We Are. Union of Medicine Producers and Importers Established in 2003
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Perspectives of the Armenian Pharmaceutical Industry Armen Aghayants Executive Director Union of Medicine Producers and Importers
Who We Are • Union of Medicine Producers and Importers • Established in 2003 • Mission: support the development of a competitive Armenian pharmaceutical industry by representing and protecting the interests of its members • Members: 10, of which 6 are producers • Producer member companies manufacture over 80% of local production • Importer-members represent approximately 60% of the market
Ongoing Projects Through active collaboration with CAPS • Development of Union’s Strategic Development plan for upcoming 3 years • Creation of web portal for Pharmaceutical Industry • Establishment of GXP Center of Excellence to provide training and information on industry-related issues, such as Good Manufacturing Practices • Advocacy activities
Armenian Pharmaceutical Industry: Key Facts • 61 importers of pharmaceutical products • 17 licensed manufacturing companies • 20 wholesale and 800 retail companies • 4 major retail chains • Local Production: 7.6 million USD* • Exports: 3,7 million USD* • Imports: 100 million USD* *National Statistical Service, 2007
Armenian Pharmaceutical Industry:Major Producers’ Turnover 2006-2008 $ 3,500,000 Liqvor Yerevan CPF PharmaTech Arpimed Esculap Vitamax-E
Armenian Pharmaceutical Industry: Major Product Lines of Local Producers • Sterilized liquid preparations, including intravenous infusion liquids • Antiseptic preparations, etc. • Cardio vascular medicines • Galenic preparations • Herbal extractions and liquid preparations • Ophthalmologic medical preparations • Probiotic complexes (Narine) • Bioactive Food Additives Physical forms: tablets, capsules, ointments and solutions.
Armenian Pharmaceutical Industry:Export Performance Source: National Statistical Service
Export Destinations of Armenian Pharmaceutical Industry Source: National Statistical Service
Armenian Pharmaceutical Industry:Imports Source: National Statistical Service
Foreign Investment in Armenian Pharmaceutical Industry As a result of investment, Armenian producers cover almost 100% of local demand for IV solutions.
Why Invest in PharmaceuticalIndustry • High market growth perspectives both in domestic and Armenia’s major export markets within CIS • Old traditions and rich experience in fine chemical industry • Highly educated workforce, complemented every year by new graduates from Armenian internationally recognized universities with close educational cooperation with Western well-known universities • State-of-the-art testing and laboratory facilities with cutting-edge equipment and highly skilled staff, conducting all types of laboratory testing and research • Open and collaborative cluster with enthusiastic entrepreneurs • Willingness of companies to adopt international standards and readiness to invest
Opportunities in CIS: High GrowthMarket for Pharmaceuticals Imports from CIS countries totaled about 9 billion USD in 2006
Opportunities for Doing Business in Armenian Pharmaceutical Industry(1) • Green field investment No restrictions for foreign investors/companies in starting and operating businesses in the Armenian pharmaceutical industry. Investors/companies require permits and licenses with the same conditions as local companies.
Opportunities for Doing Business in Armenian Pharmaceutical Industry(2) • Equity investment Foreign investors/companies are allowed to buy and sell shares of local companies. Investors may consider the following exit strategies: a) sale of shares to strategic investors, b) IPO, c) management-buy-out (MBO) or d) management-buy-in (MBI). In 2007, the Armenian Stock Exchange was bought by Swedish OMX, which was later acquired by NASDAQ.
Opportunities for Doing Business in Armenian Pharmaceutical Industry(3) • Contract Manufacturing for Local Distribution and Export Through contract manufacturing the investors/companies may gain in terms of: • Benefiting from cost efficient production • Utilizing the knowledge and connections of local producers on local and CIS markets - having access to dynamically developing vast markets • Utilizing the advantage of small scale and flexible production capacities of Armenian producers, which are cost efficient for production of small volume products
Our Members • Alfa-FarmMajor importer, the company has contemporary warehouses. • ArpimedMajor producer. GMP and ISO certified company. • ErChF Major producer, functioning from USSR times, privatized in 1995. Main products are injection preparations, solid and liquid medicines. • EsculapImporter, producer and retailer. Main products are tablets, ointments, capsules, solutions. • Farm GoharImporter, the distributor of several Swiss and Arabian producers. • LambronMajor importer, established in 1998 and collaborating with Gedeon Richter. • Liqvor Major producer. Main products are intravenous infusion solutions, injection solutions. • Mediqal-Horyzon Producer, main products are suppositories and syrups. • Tonus-les Major importer and the distributor of several major international producers. • Vitamax-E Major producer, main products are various probiotics and NARINE