Armenia. Pharmaceutical market overview

Six companies in Armenia manufacture pharmaceuticals domestically. Domestic production satisfies about 4–6% of the country’s drug requirements. The government centrally procures drugs for the treatment of specific diseases such as tuberculosis and diabetes and distributes pharmaceuticals donated through humanitarian assistance. The rest of the pharmaceutical sector is privatized. An essential medicines list is in place, but in practice there has been difficulty in implementing the concept of essential drugs. In reality, people still need to pay most of the costs of drugs out of pocket.

Some family practices have started to apply treatment guidelines for rational drug prescription, but further enforcement is needed. The government regulates the registration, production, procurement, supply and sales of pharmaceuticals and takes charge of licensing pharmaceuticals but, overall, regulation is not strong. To strengthen the regulatory framework, a new law on medicines based on WHO recommendations is being developed.

The governmental Drug and Technology Scientific Expertise Centre – modelled on the United States Food and Drug Administration – is a dominant player in evaluating and registering pharmaceuticals and medical devices.

General data:

1. Manufacturers: 17 
2. Importers: 178 
3. Drugstores: 1000 
4. Drugstore chains: 7 

Useful information:

1. Duration of drug registration process: 3-6 months. 
2. Tax treatment: 20% VAT on drugs. 
3. State price regulation: none. 
4. Mass-media advertisement of pharmaceutical products: only permitted with respect to off-the-counter medications. 

Statistics:

1. Volume of commercial pharmaceutical imports into Armenia in 2009: USD 68 million. 
2. Volume of pharmaceutical exports from Armenia in 2009: USD 3 million. 
3. Registered drugs: 3500 (20% of which are manufactured domestically). 
4. Manufacturer ratings (for 2009): 1. F. Hoffmann-La Roche Ltd., 2. Servier, 3. GSK.