By Aynur Karimova
Azerbaijan and Iran have finalized the long-awaited agreement on cooperation of the two countries in the medicine industry.
Kambiz Amjadi, the Head of the Iranian Darou Pakhsh Holding Company, told Trend on April 21 that the company has finalized a deal with the Azerbaijan Investment Company.
The Memorandum of Understanding, signed with the Sumgayit Industrial Park, the Azerbaijan Investment Company and Azersun Holding, envisions establishment of a pharmaceutical joint venture in Sumgayit city.
Amjadi said 49 percent of the shares in the pharmaceutical company belong to Iran, and 51 percent belong to Azerbaijan.
He said the 51 percent stake held by Azerbaijan will belong to the Azerbaijan Investment Company ( 25 percent) and Azersun Holding (26 percent).
Speaking about the details of the agreement, Amjadi said more than $30 million will be invested in the medicine production project, adding that the project is aimed at producing more than 90 types of medicines in Azerbaijan.
He predicted that the factory will be launched within the next two years, and it will be engaged in the production of dozens of essential drugs for treatment of heart diseases, contagious diseases, non-communicable diseases, as well as various types of antibiotics and painkillers.
Darou Pakhsh is the largest pharmaceutical company in Iran and the region with annual turnover of about $400 million.
Being a part of the DarouPakhsh Holding, the company belongs to the Organization of Social Protection of the Islamic Republic.
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 be realized in 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 begin.
Azerbaijan has also invited other Iranian companies to cooperation in the pharmaceutical manufacturing.
Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter @Aynur_Karimova
Follow us on Twitter @AzerNewsAz