Construction of the Caspian Pharmed, an Azerbaijan-Iran joint pharmaceutical plant, which is the second one in Azerbaijan, will be completed in the third quarter of 2018, Azerbaijan’s Economy Minister Shahin Mustafayev told reporters in Baku Jan. 16.
He made the remarks following the groundbreaking ceremony of the Caspian Pharmed plant held in the Pirallahi Industrial Park, in Pirallahi district of Baku Jan. 16.
Azerbaijani Minister of Economy Shahin Mustafayev and Iran’s Minister of Cooperatives, Labor and Social Welfare Ali Rabiei attended the ceremony.
Azerbaijani Deputy Economy Minister Niyazi Safarov, Director General of Azersun Holding Savas Uzan, Executive Director of the Azerbaijan Investment Company Rovshan Najaf, Director General of Sumgait Chemical Industrial Park Nazim Talibov also attended the ceremony.
“Over $20 million will be invested in the new plant,” Azerbaijan’s economy minister said. “It will have German and Italian equipment installed. Construction of the plant will take around a year and a half, and the plant will start producing 84 kinds of medicines in the third quarter of the next year.”
Mustafayev added that the drugs produced at the plant will meet the highest standards, as well as the GMP (Good Manufacturing Practice) standard.
“The main part of the drugs is intended to be sold on Azerbaijan’s domestic market, but a certain part of them will be exported,” he noted. “The business plan envisages supplying drugs to Russia, Kazakhstan and Georgia. At the first stage, 90 employees will work at the plant, and their minimum wage will be 700 Azerbaijani manats.”
Mustafayev added that since the plant will be built in the Pirallahi Industrial Park, it will receive the same benefits the residents of other industrial parks.
The minister said that the payback period of investments in the plant will amount to seven years and two months, and the internal rate of return will amount to 17.24 percent, which is quite a high indicator.
In the joint plant, 49 percent of the shares belong to Iran’s Tamin Pharmaceutical Investment Company, while 25 percent go to the Azerbaijan Investment Company and 26 percent to Azersun Holding.
Iran's Darou Pakhsh Holding Company inked a memorandum of understanding with the Azerbaijan Investment Company and Azersun Holding in Baku April 21, 2016.
At the first stage, 200 million tablets and capsules, as well as 84 drugs, including essential ones for treatment of heart diseases, contagious diseases, non-communicable diseases, as well as various types of antibiotics and painkillers are expected to be produced at the plant annually.