Export-Oriented Growth Path for the Pharmaceutical Industry in Armenia from 2018 to 2020

The presented study examines the relevant problems of development of the pharmaceutical industry in Armenia. Aim. The study aims to determine a path for export-oriented growth of the pharmaceutical industry (including pharmaceutical products) in the medium term from 2018 to 2020. Tasks. The authors analyze the current state of the pharmaceutical market in Armenia and substantiate the feasibility of transition and/or creation of production companies in Armenia asa platform for entering the markets of the Eurasian Economic Union (EAEU) and the Middle East. Methods. This study uses general scientific methods of cognition, including analytical and methodological approaches and elements of forecasting. The export-oriented growth path for the Armenian pharmaceutical industry is determined using the analytical research method, forecasts in the context of searching for strategies of various TNCs, statistical data on the export of Armenian pharmaceutical products, and the dynamics of industrial growth in 2010-2016 published by the Statistical Committee of the Republic of Armenia, UN Comtrade Statistics, and other sources. Results. Armenia is trying to attract companies (including TNCs) or investors (including the diaspora-related investors and investments) from the EAEU and other regions that would wantto enter the markets of the Eurasian Economic Union, the Middle East and/or North Africa, Iran, and some Asian countries. Local manufacturers are going to become more aggressive, since they will start producing in accordance with GxP standards and entering new markets while maintaining their presence in the existingones, trying to increase their share by producing more expensive generics and introducing them to the existing and new markets. Export of vaccines (for veterinary medicine) will remain one of the industry’s leading exports. By creating strategic alliances, Armenian manufacturers will participate in regional public tenders in Russia, trying to win some of them. The Armenian government could start supporting local companies through outsourcing and becoming a CMOs for pharmaceutical TNCs. By 2020, export of pharmaceutical products could be at least doubled and achieve $35-40 million. Conclusion. After a period of rather slow growth of the Western outsourcing sector, which has initiated repatriation of production from the East, and combined with the inflationary rise in expenditures, Armenia now has a chance to become a platform for companies that are willing to explore the possibility of transitioning and/ or establishing production in Armenia, thus penetrating the markets of the Eurasian Economic Union, the Middle East and/or North Africa, and/or being oriented towards the production of active pharmaceutical ingredients in the medium term. The obtained results can be used by the Ministry of Economic Development and Investments of the Republic of Armenia and Business Armenia.

фармацевтический продукт, фармацевтическая промышленность, дженерики, экспорт, Армения, pharmaceutical product, pharmaceutical industry, generics, export, Armenia

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