Import Reliance and Rising Prices: What’s Happening in Kazakhstan’s Pharmaceutical Market?

Drug prices in Kazakhstan are climbing, and despite the country's ability to produce pharmaceuticals, the market remains dominated by imports. Analysts at Energyprom.kz have highlighted key issues in the industry, Orda.kz reports.

In 2024, Kazakhstan produced 171.6 billion tenge worth of pharmaceutical products, an 18.9% increase from the previous year. Most of the production occurred in the Shymkent, Almaty, and Qaraganda regions.

However, these numbers pale compared to the volume of drugs imported. From January to November 2024, Kazakhstan imported 30,000 tons of pharmaceuticals worth $1.5 billion, a 25.7% increase in monetary terms compared to the previous year.

This means domestic production accounts for only a small market share. The leading medicine suppliers to Kazakhstan include Russia, China, Germany, India, Belarus, France, and Türkiye.

Kazakhstan’s domestic pharmaceutical supply remains critically low. Between January and November 2024, Kazakhstan produced just 2.8 tons of provitamins, vitamins, and derivatives — 27.8% less than the previous year. Locally made vitamins accounted for only 1.7% of the market, while imports covered 98.3% of demand. Over 11 months, Kazakhstan imported 164.5 tons of vitamins, outpacing local production by 58.8 times,  wrote Energyprom.kz.

Regarding antibiotics, production is increasing, yet local manufacturers supplied only 20.3% of the country's demand last year.

Meanwhile, the cost of medicine continues to rise.

Year-on-year, drug prices have increased by 8.6%, with the sharpest hikes recorded in the Qaraganda region (+14%), Astana (+10 %), Abay region (+10 %), and East Kazakhstan region (+10 %). Jetisu (+4.9%) and the Aqmola region (+5%) saw the most modest price increases.

Original Author: Nikita Drobny