24 domestic manufacturers of medicines and medical products will be able to launch a new or modernize existing production thanks to a guaranteed ten-year state order for pharmaceutical products.

These companies were selected based on the results of an open tender for the conclusion of long-term contracts with the Single Distributor for the purchase of medicines and medical devices for LLP SK-Pharmaceuticals. On July 26, the evaluation commission of the contest published results on the Internet resource of the Single Distributor http://www.sk-pharmacy.kz.

According to the press service of the Ministry of Health of the Republic of Kazakhstan, the guaranteed market for pharmaceutical products through government orders for ten years allows producers to attract new investments in the pharmaceutical industry of the country, finding the necessary resources for updating or building pharmaceutical plants in accordance with GMP good manufacturing practice standards.

In the competition, announced on April 11, 2017 the manufacturing companies had the opportunity to declare their intention to produce any of 772 medicinal products and 1367 medical products. By the time the bids were opened, 48 applications had been received from 44 potential suppliers.

The Ministry of Investment and Development of the Republic of Kazakhstan presented its industry opinion on the submitted business plans and the feasibility study of each of the applications. The main criteria for assessing the contestants were the degree of study of the project, sources of financing, provision of infrastructure and land.

Now, with the winners, long-term contracts for delivery of 523 names of medicines and 389 items of medical products, played on the results of the contest, will be concluded.

Companies are given five years to implement projects, after which manufacturers will have to start supplying high-quality domestic medicines and medical products to Kazakhstan hospitals through a single distributor.

Recall that this is not the first contest to conclude long-term contracts with domestic pharmaceutical manufacturers. To stimulate the development of the pharmaceutical industry and the development of domestic production, a single distributor has previously concluded 30 long-term contracts for the supply of 553 medicines and 213 items of medical products. Domestic pharmaceutical manufacturers have already established the production and supply of 137 names of medicines and 152 items of medical products under these agreements.

Note that at the moment domestic pharmaceutical production covers about 11 percent of the pharmaceutical market in Kazakhstan. At the same time, according to the World Health Organization, in order to ensure national drug safety, its own pharmaceutical production should be at least 30% of the market. Thus, the conclusion of long-term supply contracts contributes to improving the national security of Kazakhstan.

Reference: SK-Pharmaceuticals LLP was established in February 2009 in the structure of Samruk-Kazyna to perform the functions of a single distributor to provide medicines to the population within the guaranteed volume of free medical care, as well as to increase the stability and competitiveness of the pharmaceutical industry in Kazakhstan. Later, in 2013 the company was transferred to the Ministry of Health of the Republic of Kazakhstan.