How "Kyrgyzpharmacy" Works: Procurement, Budgets, and Access to Medicines

Евгения Комарова Health
VK X OK WhatsApp Telegram
Since 2023, the state enterprise "Kyrgyzpharmacy" has been conducting centralized procurement of medications for over 300 medical institutions. A budget of 5.8 billion soms is planned for 2025.

In an interview with AKIpress, the director of "Kyrgyzpharmacy," Talant Sultanov, shared details about planning, international cooperation, and interaction with suppliers.

- What is the budget of "Kyrgyzpharmacy"?

- "Kyrgyzpharmacy" was established only two and a half years ago, and since then, the organization has been actively developing its activities.

Initially, 1 billion soms were allocated for procurement, which were successfully utilized. In the following year, when it became clear that the organization was necessary for the healthcare system, consolidated procurement began: the needs of over 300 medical institutions are gathered and purchased in bulk.

As a result, prices for some medications have been reduced by 3-5 times. Previously, the cost of the same medication varied in different regions, and suppliers often refused to work with remote areas. Now all 300 hospitals send their requests, and procurement is conducted centrally.

- There were previously issues with supplies, for example, at the National Oncology Center, when medications did not arrive for months. Has this situation improved?

- The healthcare sector is complex, especially when it comes to medications, as it is directly related to the well-being of citizens. Ensuring the quality and availability of drugs is key, as procurement is carried out from global manufacturers who have numerous orders.

It is important to plan supplies in advance: an approved list of needs must be formed 6 months ahead. After receiving it, we begin negotiations with manufacturers and make payments. Medications are prepared specifically for Kyrgyzstan — packaging, translations, and labeling take about two months. Then the medications are delivered to the country by various means: by rail, air, or road transport.

Upon arrival, the medications undergo quality certification. Firstly, they must be registered with the Department of Drug Provision, which controls all permitted imported drugs and medical devices. Without registration, procurement is impossible. Secondly, the department checks the quality of a specific batch. After all checks, the medications are sent to the warehouse of "Kyrgyzpharmacy" and distributed to medical institutions.

Therefore, we insist on planning 6 months in advance. Since "Kyrgyzpharmacy" is a new organization, in the first years we had to learn from our own mistakes to avoid similar problems in the future. We hope that 2026 will be more organized than 2025.

Currently, we continue discussions on the list of locations with the Ministry of Health; it has not yet been approved. We expect to finalize it soon and begin active procurement for the timely arrival of medications in the country.

The budget for 2025 is 5.8 billion soms. In the first year, 1 billion soms were allocated, and these funds were used for procurement. In the second year, the volume of procurement increased to nearly 4 billion, but the working capital remained the same — 800 million, as 200 million from the first year had already been utilized. Thus, we are operating with 800 million to meet needs of 5.8 billion.

The system functions as follows: medical institutions pay for medications only after their delivery. However, manufacturers, especially international ones, require prepayment for the purchase of raw materials and production. We first make payment to the manufacturer, then the medications are delivered to the country, distributed to institutions, and only then do hospitals make payment for the supplies.

This financial gap sometimes leads to delays, as manufacturers expect prepayment, while we need to collect funds from hospitals. This system is currently being optimized.

At the level of government bodies, decisions have already been made for more organized work.

- Are there problems with medication shortages in the country?

- First of all, we primarily work with medical institutions and do not interact directly with pharmacies.

However, there are sometimes disruptions in the market with certain medications or delays in their supplies. This can be related to several factors. Firstly, all medications must be registered for import into the country.

Since the Kyrgyz market is small, global manufacturers are not very interested in spending resources on registering drugs here. It is easier for them to register a product in a country with a larger number of consumers. Therefore, Kyrgyzstan addresses this issue through the consolidation of needs.

We are discussing the possibility of joint procurement with neighboring countries — Kazakhstan and Uzbekistan — which makes us more attractive to global manufacturers, reduces prices, and ensures the availability of medications.

The issue of drug registration in the country remains relevant. We are actively attracting manufacturers to our market, as about 95% of medications are imported. Developing local production will reduce dependence on imports and avoid global problems.

Long-term contracts are another step towards solving these challenges. They allow manufacturers to see stable demand over several years, plan production, and register drugs in Kyrgyzstan. This also provides an opportunity to ask manufacturers to localize part of the production in the country. Such experience has already been implemented in Kazakhstan and Uzbekistan, where leading international companies have established local production.

If we develop long-term contracts, we will be able to attract global manufacturers to build factories and organize production in Kyrgyzstan.

- Why has the number of state pharmacies "El Aman" decreased?

- In my opinion, "El Aman" pharmacies have a social focus and were initially opened in areas where the private sector was absent. Their goal was to ensure access to medications for residents of the most remote villages and regions.

However, we are now observing that in some pharmacies there is insufficient demand for them to remain financially sustainable. Therefore, the management of "El Aman" is forced to close certain locations. Additionally, some premises where pharmacies were located are being closed for reconstruction or demolished due to active construction and infrastructure development, such as roads.

However, new pharmacies are planned to be opened in other locations. The Ministry of Health and state agencies managing real estate are exploring opportunities to create suitable points for "El Aman" pharmacies.

- The issue of reforming the enterprise has been raised multiple times in parliament. What exactly was meant by these reforms and what measures have already been implemented?

- At the time when the Minister of Health Erkin Maratovich [Erkin Checheybaev] spoke in the Jogorku Kenesh, we were undergoing significant reorganization of "Kyrgyzpharmacy," aimed at strengthening international cooperation and digitizing business processes. Digitization and automation help make procurement more transparent and increase accountability.

Firstly, we updated the rules to align them with international procurement standards, which was done with the support of international organizations. Secondly, we are implementing automation of processes — from procurement and supply chain management to contracts, to ensure everything is transparent and efficient.

Regarding international cooperation, the establishment of a special management unit for this direction has allowed for more dynamic and timely negotiations with global manufacturers, ensuring timely access for patients and medical institutions to medications. Currently, many manufacturers are coming to Kyrgyzstan to discuss supplies, and we are also negotiating with international UN organizations that handle procurement on a global level.

The consolidation of Kyrgyzstan's needs allows for price reductions of 3-4 times. International organizations such as UNICEF, UNDP, UNFPA, and UNOPS procure medications under long-term contracts with WHO prequalification, which guarantees high quality and affordable prices. We plan to use their system for procurement to ensure the country has high-quality medications at competitive prices.
VK X OK WhatsApp Telegram

Read also:

Tash-Rabat

Tash-Rabat

This tourist area includes two ancient monuments — the caravanserai Tash-Rabat and the settlement...

Write a comment: