Boston, MA -- (SBWIRE) -- 04/09/2014 -- As a new member of the Customs Union, Kazakhstan will impose a tariff on imported pharmaceuticals. This will moderately impact medium term growth in the pharmaceutical market as demand for medicines is driven by private consumption. Nevertheless, we expect pharmaceutical spending to accelerate as the government commits to increasing healthcare expenditure and wages continue to grow. For multinational drug manufactures, Kazakhstan will continue to be the most attractive pharmaceutical market in the Central Asian region.

Headline Expenditure Projections

- Pharmaceuticals: KZT273.92bn (US$1.84bn) in 2013 to KZT302.36bn (US$2.06bn) in 2014; up 10.4% in local currency terms and 12.0% in US dollar terms.
- Healthcare: KZT1,537bn (US$10.34bn) in 2013 to KZT1,705bn (US$11.63bn) in 2014; up 10.9% in local currency terms and 12.5% in US dollar terms.

Risk/Reward Rating: Kazakhstan has a RRR score of 50.9 out of 100, making it the 11th most attractive pharmaceutical market in Emerging Europe. Although the Kazakh market is characterised by relatively few market barriers and rapid growth, the potential rewards for the industry are moderated by low per capita spending, an unfavourable rural-urban population split

View Full Report Details and Table of Contents

Key Trends And Developments

February

Kazakhstan will provide equal funding for primary healthcare across all regions in the country in 2014, according to Kazakh Prime Minister Serik Akhmetov. Continuous reform of the country's primary healthcare sector and the implementation of integrated capitation have helped the government to remove the funding imbalance in primary healthcare across all regions, Akhmetov added. Akhmetov observed that primary healthcare will provide up to KZT800 (US$5.05) a month for each patient in 2014, if the actual expenses incurred by the government range from KZT160-480 (US$1.01-3.03) a month in 2012.

Hospitals in Kazakhstan are not using human resources efficiently, with the proportion of administrative personnel in some hospitals exceeding the recommended 15% limit, according to Health Minister Salidat Kairbekova. The country also faces the inefficient use of funds in the form of unjustified procurement of medicines and medical devices. Of the 520 providers of inpatient services in 2013, 279 (54%) reported excessive visits (longer than two months), Kairbekova added.

January

Kazakhstan's Health Ministry will collaborate with patient organisations and drugmakers to create a special working group to discuss the method of medicine procurement in Kazakhstan. The aim of the working group will be to negotiate on matters associated with the use of medicines to be used in the treatment of various diseases, including hepatitis B.

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Healthcare research reports at Fast Market Research

You may also be interested in these related reports:

- Kazakhstan Pharmaceuticals & Healthcare Report Q1 2014
- Uzbekistan Pharmaceuticals & Healthcare Report Q2 2014
- Kenya Pharmaceuticals & Healthcare Report Q2 2014
- Sweden Pharmaceuticals & Healthcare Report Q2 2014
- Croatia Pharmaceuticals & Healthcare Report Q2 2014
- Bangladesh Pharmaceuticals & Healthcare Report Q2 2014
- Mexico Pharmaceuticals & Healthcare Report Q2 2014
- Bulgaria Pharmaceuticals & Healthcare Report Q2 2014
- Thailand Pharmaceuticals & Healthcare Report Q2 2014
- Lebanon Pharmaceuticals & Healthcare Report Q2 2014