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Iran keen to establish medicine production facility in Azerbaijan

8 February 2016 13:54 (UTC+04:00)
Iran keen to establish medicine production facility in Azerbaijan

By Aynur Karimova

Iran, which has recently made great achievements in the health field, is interested in establishing an enterprise for medicine production in Azerbaijan.

Such a proposal was made last week at a meeting held in Baku between Azerbaijan's Economy and Industry Minister Shahin Mustafayev and an Iranian delegation headed by Reza Raei, Acting Chairman of the Organization of Social Protection.

Raei spoke about the Organization of Social Protection of Iran and the "Darou pakhsh" pharmaceutical company, which operates under the organization.

The sides discussed the possibility of cooperation in the field of production of medicines in Azerbaijan.

The Azerbaijani side agreed to consider these proposals and study the possibility of their realization.

Developing pharmaceutical manufacturing in Azerbaijan may become one of major directions in the country's aim to diversify its non-oil sector of the economy.

In late 2015, the government announced that Azerbaijan will establish its own enterprises that will manufacture medicines to cease dependence on imports.

The market of medicines in Azerbaijan by 97 percent dependent on imports, while 57 percent of medicines registered in the country are produced in Europe, 26 percent in the CIS countries, including 12 percent made in Russia. The small proportion is produced in Asian countries.

In this regard, the government is keen to cooperate with foreign companies as well.

Iran's pharmaceutical market experienced a sharp growth last year, rising to $1.2 billion. There are as many as 65 pharmaceutical companies in the country, but their operations are basically limited to local formulation.

The modern Iranian pharmaceutical system in the country commenced 100 years ago with the opening of the first modern-style pharmacy by German, French, and Austrian pharmacists in Tehran. Established in 1946, Abidi was the first Iranian pharmaceutical company, followed by Tolid Darou and Darou Pakhsh in 1958 and 1963, respectively.

The pharmaceutical industry is regulated by the government, where the production and importation of drugs is heavily subsidized.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

Follow us on Twitter @AzerNewsAz

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