Uzbekistan has launched a comprehensive set of reforms aimed at accelerating the development of its pharmaceutical sector, expanding domestic production, strengthening research capabilities, and positioning the country as a regional hub for biotechnology and pharmaceutical innovation.

The initiative forms part of a broader strategy to increase investment, stimulate technological transfer, and enhance the competitiveness of locally produced medicines in both domestic and international markets.

Strategic Targets for Sector Growth

 

The reform package sets ambitious development targets for the pharmaceutical industry in the near term. These include increasing total pharmaceutical production, expanding exports, launching new investment projects, and significantly diversifying product lines.

According to the policy framework, the government aims to:

• increase pharmaceutical production to 8.5 trillion UZS;
• attract approximately USD 1 billion in prospective investment projects;
• launch new pharmaceutical investment projects totaling USD 800 million;
• expand exports of pharmaceutical products and services to USD 300 million;
• introduce 350 new pharmaceutical products to the market.

A key element of this strategy is the further development of the Tashkent Pharma Park innovation cluster, which is intended to evolve into a biotechnology and pharmaceutical research hub known as “BioPharma City.”

Technology Transfer and R&D Support

 

To encourage the rapid localization of pharmaceutical production, the reforms introduce financial support mechanisms for companies that begin manufacturing medicines soon after the expiration of patents for original drugs.

Under the new measures:

• 50% of technology transfer costs may be reimbursed, up to USD 50,000;
• alternatively, 50% of research and development expenses for creating pharmaceutical products may be reimbursed, up to USD 100,000.

These incentives are financed through the Fund for the Support and Development of the Pharmaceutical Industry, reflecting a policy focus on strengthening domestic technological capacity and reducing reliance on imported medicines.

Support for International Certification and Market Access

 

Additional support measures are designed to help domestic pharmaceutical manufacturers obtain internationally recognized certifications and expand into global markets.

From mid-2026, companies may receive reimbursement for:

• 50% of costs associated with foreign consultants assisting with the implementation of international standards such as EU GMP and US FDA GMP, as well as WHO prequalification procedures, up to USD 50,000.

These measures are intended to improve product quality, enable international regulatory recognition, and facilitate export expansion.

Incentives for Innovation and High-Tech Drug Production

 

Enterprises that implement industrial production of high-technology pharmaceutical products within three years may receive additional financial support.

Specifically, the government may compensate interest expenses on project-related loans for up to two years, further reducing financing costs for innovative pharmaceutical manufacturing projects.

This approach aims to stimulate investment in advanced pharmaceutical technologies, including biologics, biosimilars, and specialized medical treatments.

Tax Incentives for Pharmaceutical Investment Projects

 

The reform package also introduces long-term tax incentives to attract investment into pharmaceutical production and medicinal plant processing.

Companies implementing investment projects in these areas may receive:

• exemption from land tax for three years from the start of project implementation (subject to production thresholds);
• exemption from profit tax and property tax for three years after the facilities begin operations.

In addition, non-resident companies receiving royalty payments for technology transfer or trademarks used in pharmaceutical production may benefit from a reduced tax rate of 5% until 2030, unless otherwise provided by international agreements.

Strengthening Product Safety and Quality Standards

 

The reforms also introduce stricter regulatory requirements aimed at improving the safety and traceability of pharmaceutical and health-related products.

Beginning in 2028:

• production of biologically active additives (dietary supplements) will require the implementation of the HACCP system for risk analysis and control;
• such products will also become subject to mandatory digital labeling.

These measures are intended to improve consumer protection and ensure better regulatory oversight of health-related products.

Establishment of a National Biopharmaceutical Research Institute

 

To strengthen the scientific base of the pharmaceutical sector, a National Biopharmaceutical Research Institute will be established through the consolidation of several existing research institutions, including pharmaceutical and vaccine research centers.

The institute will focus on:

• advanced research in biotechnology and pharmaceuticals;
• development of innovative medicines;
• technology transfer and commercialization of scientific research;
• training of highly qualified specialists in pharmaceutical sciences.

Education and Talent Development

 

Human capital development also forms a key part of the reform agenda.

Beginning in the 2026/2027 academic year, specialized educational programs in biological sciences will be introduced at the Abu Ali Ibn Sino specialized school, integrated with the Pharmaceutical Technical University under a STEM-based five-year education model.

This initiative is designed to create a pipeline of highly qualified specialists capable of supporting the long-term development of Uzbekistan’s pharmaceutical and biotechnology sectors.

Strategic Implications

 

Taken together, the reforms represent one of the most comprehensive policy packages introduced in Uzbekistan’s pharmaceutical sector in recent years.

By combining investment incentives, tax benefits, R&D support, international certification assistance, and institutional reforms, the government aims to:

• strengthen domestic pharmaceutical manufacturing;
• promote innovation and technology transfer;
• expand exports of high-value pharmaceutical products;
• position Uzbekistan as a regional center for pharmaceutical research and biotechnology development.

The development of BioPharma City and the expansion of the Tashkent Pharma Park cluster are expected to play a central role in achieving these objectives.