Azerbaijan, Iran to invest initially 35M euros in medicine plant construction

By Aynur Karimova

The volume of investment, which will be invested by Azerbaijan and Iran in the first stage of construction of a pharmaceutical factory in the Sumgayit city, has been revealed.

Rassoul Dinarvand, the Iranian Deputy Health Minister and Head of the Food and Drug Administration, told Trend that the two countries will invest 35 million euros in the establishment of such an enterprise.

Iran’s Darou Pakhsh Pharma Chem Company, the largest pharmaceutical company of Iran with annual turnover of about $400 million, will cooperate with Azerbaijan for launching the joint pharmaceutical factory. The company belongs to the Organization of Social Protection of the Islamic Republic.

The factory is expected to produce dozens of essential drugs to be used for treatment of heart diseases, contagious diseases, non-communicable diseases, as well as various types of antibiotics and painkillers.

Dinarvand, who visited Baku last week to discuss finalizing the pharmaceutical project met several Azerbaijani officials in a bid to pave the way for launching the project.

“The way for investment has been paved and the project will be inaugurated soon,” he said.

Azerbaijan sees the pharmaceutical manufacturing as one of major directions to diversify the non-oil sector of the economy. Taking into account the profitability of pharmaceutical sector, the government is keen to cooperate with foreign companies in this direction.

Iran with its modern pharmaceutical system has 100-year experience in this sector. The Islamic Republic experienced a sharp growth last year, rising to $1.2 billion.

In February, Azerbaijan and Iran signed a Memorandum of Understanding to establish a pharmaceutical factory in Sumgayit. The MoU was agreed during President Ilham Aliyev’s Tehran visit.

The project of construction of the plant will consist of three stages. In the first stage, necessary medicines will be imported to Azerbaijan from Iran, while in the second stage, Iran will provide Azerbaijan with the technology necessary for the production of drugs. As part of the third stage, production of medicines will be started.

The implementation of these three stages will take around 3-5 years.

The country has also invited other Iranian companies to cooperate with Azerbaijan in the pharmaceutical manufacturing.

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

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