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Qabil Ashirov

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In the modern era, the development trajectory of the global economy and geopolitics clearly demonstrates that every independent state must ensure its strategic security at the highest possible level, particularly its healthcare and pharmaceutical independence. Minimizing dependence on external supply chains and producing vital products through domestic capabilities is an integral component of national sovereignty. The Republic of Azerbaijan has been taking consistent and purposeful steps in this direction, successfully continuing the diversification of the non-oil sector and the development of high-tech industrial sectors. The large-scale projects implemented in the country in recent years are strengthening the resilience of the national economy, improving the quality indicators of the healthcare system, and enhancing Azerbaijan’s position on the international trade map.

As a logical continuation of this strategy, an important milestone was reached in the country’s economy on October 5, 2026. President Ilham Aliyev personally attended the opening ceremony of the pharmaceutical manufacturing facility of “Gen Pharma Caucasus Manufacturing Operations” LLC at the Pirallahi Industrial Park, demonstrating the highest level of state attention to this sector. With a total value of 113.9 million manats, this major project was financed through a structure in which private investment was complemented by a 13.2 million manat investment from the Azerbaijan Business Development Fund and 10 million manats in preferential loans. In addition, as a resident of the industrial park, the enterprise benefited from more than 7 million manats in exemptions from VAT and customs duties, reflecting the state’s development-oriented support. Under this partnership model, Türkiye’s “Gen İlaç ve Sağlık Ürünleri Sanayi A.Ş.” holds a 66 percent stake, the Azerbaijan Business Development Fund owns 29 percent, while Türkiye’s “SİA Pharmaceuticals” has joined the cooperation with a 5 percent stake.

Looking at the statistical indicators, the development dynamics of the country’s pharmaceutical market become clear. According to the State Statistics Committee, pharmaceutical products worth 25.7 million manats were manufactured in Azerbaijan during the first eight months of 2026. During the same period, various pharmaceutical products worth $342.8 million were imported from abroad to meet domestic demand. These figures confirm the importance of expanding domestic production capacity and clearly highlight the significance of the newly opened plant. Covering an area of 5.2 hectares, the new facility has the capacity to manufacture 60 million boxes of medicines annually, including 2.5 billion tablets and capsules. This substantial production capacity represents an entirely new stage in the country’s pharmaceutical supply.

The plant will manufacture medicines for cardiology, neurology, urology, diabetology and gastroenterology, as well as painkillers and antibiotics. Over the next five years, the localization of production for more than 500 medicines is planned. The facility’s technological infrastructure has been established using advanced equipment supplied by leading companies from the United States, Japan, Germany, Switzerland, China, Denmark, Sweden and Türkiye. This ensures the full compliance of the manufactured products with the highest international standards. The production process will not be limited to meeting domestic demand and will also include exports to Uzbekistan, Kazakhstan, Georgia and other foreign markets. Thus, Azerbaijan will gain an opportunity to become an exporter of non-oil products and increase foreign currency inflows. Russia, Germany and India also hold important positions among the major partner countries from which pharmaceutical products are imported, while diversification of this geography helps maintain supply stability.

Alongside the economic benefits, social and scientific progress also lie at the heart of the project. The facility will initially provide permanent employment for 178 people. At the same time, the establishment of an official educational base within the plant for Karabakh University and Azerbaijan Medical University will help directly link scientific research and personnel training with industrial production. Such strategic initiatives implemented under the leadership of President Ilham Aliyev strengthen the country’s economic potential, enhance the role of industrial parks and establish a strong foundation for future generations. At the current stage, the achievements already secured are cementing Azerbaijan’s position as a regional center for medical technologies and pharmaceuticals and ensuring the well-being of future generations.