The participation of President of the Republic of Azerbaijan Ilham Aliyev in the inauguration of the pharmaceutical manufacturing facility of "Gen Pharma Caucasus Manufacturing Operations" LLC in the Pirallahi Industrial Park on October 5 holds significant importance as a continuation of measures implemented toward developing the pharmaceutical industry in the country, expanding domestic production capabilities of pharmaceuticals, and reducing import dependency.

Sevinj Jabbarova, an employee of the Monitoring and Evaluation Division of the Center for Analysis of Economic Reforms and Communication (CAERC), stated that positive dynamics have been observed in domestic pharmaceutical production in recent years. In the first six months of 2026, pharmaceutical production in Azerbaijan increased by 35.5 percent compared to the corresponding period of the previous year. Along with this, expanding the product assortment of domestic production, increasing production capacity, and meeting a greater portion of domestic demand through local manufacturing remain key developmental directions. The current dynamics indicate additional growth potential in this sector.

According to her, the "Socio-Economic Development Strategy of the Republic of Azerbaijan for 2022–2026" designated "Supporting the organization of the production of pharmaceuticals, medical supplies, and active pharmaceutical ingredients in the country, testing their quality, and issuing relevant registration certificates" as a distinct measure. Within the scope of this measure, the targets set for expanding the production of new pharmaceutical products and active substances envisage broadening domestic production capacities and product diversification.

In this regard, the production potential of the "Gen Pharma Caucasus Manufacturing Operations" facility is of particular importance. With a total investment value of 113.9 million manats, an annual production capacity of 60 million packs of pharmaceuticals—including 2.5 billion tablets and capsules—and the planned localization of more than 500 formulations over the next five years, the facility creates substantial potential for scaling production capabilities and diversifying the product portfolio of the domestic pharmaceutical industry.

"Expanding domestic production is especially critical against the backdrop of the population's rising demand for pharmaceuticals. A 70 percent increase in consumer expenditures directed toward purchasing medicines and medical supplies between 2021 and 2025 demonstrates the upward trajectory of spending on these products. Under such circumstances, expanding domestic manufacturing, broadening the production of high-quality generic drugs, and strengthening competition in the market are vital directions for enhancing the sustainability of pharmaceutical supply," she stated.

The significance of the project is not limited solely to supplying the domestic market. The planned export of products manufactured at the facility to Uzbekistan, Kazakhstan, Georgia, and other countries is crucial for expanding the export potential of the local pharmaceutical industry and enhancing foreign market access for Azerbaijani-made pharmaceuticals. The application of modern technologies and aligning manufacturing processes with international quality standards are also essential for bolstering the competitiveness of local products in foreign markets.

Furthermore, the establishment of the new facility demonstrates the significance of public-private partnerships in advancing the pharmaceutical industry, while holding strong potential to contribute to human capital development, the training of qualified local personnel, and the adoption of modern production technologies.

Sevinj Jabbarova emphasized that the primary focus in the subsequent phase is translating the created production capacity into tangible economic and social outcomes. To achieve this, it is essential to regularly evaluate the share of domestic production in overall pharmaceutical provision, the number of localized formulations, import substitution levels, export volumes, and the affordability and accessibility of domestically produced medicines for the population. Reaching the facility's full operational capacity will contribute to broadening drug manufacturing in both variety and volume, satisfying a larger portion of domestic demand through local production, and reinforcing the position of the pharmaceutical industry within the non-oil industrial sector.