Turkish-Azerbaijani JV builds $67 mln drug plant in Baku

MOSCOW. Oct 6 (Interfax) - Gen Pharma Caucasus Manufacturing Operations LLC, a Turkish-Azerbaijani joint venture, opened a pharmaceutical plant in the Pirallahi Industrial Park in Baku on Monday, the website of President Ilham Aliyev, who attended the opening ceremony, reported.

"The project, with a total value of AZN113.9 million, was financed through private investment as well as an AZN13.2 million investment by the Azerbaijan Business Development Fund and AZN10 million in concessional financing. As a resident of the Industrial Park, the enterprise has been exempted from more than AZN7 million in VAT and customs duties," the press release said.

The plant, located on 5.2 hectares, has annual capacity to produce 60 million boxes of drugs, including 2.5 billion tablets and capsules. It will manufacture medications for cardiology, neurology, urology, diabetes, gastroenterology, as well as painkillers, antibiotics and other pharmaceuticals.

The plant "is equipped with machinery manufactured by leading companies from the United States, Japan, Germany, Switzerland, China, Denmark, Sweden, and Turkey, enabling the production of pharmaceutical products in line with high international standards," the release said.

In addition to selling its products on the domestic market, the plant intends to export to Uzbekistan, Kazakhstan and Georgia.

Gen Pharma founder Abidin Gulmus said that the venture's development plans include increasing production, localizing production of more than 500 medicines within five years, meeting domestic demand to the maximum extent possible, and expanding its export geography.

Gen Pharma Caucasus Manufacturing Operations was founded by Turkey's Gen Ilac ve Saglik Urunleri Sanayi A.S. (66%) and SIA Pharmaceuticals, and the Azerbaijan Business Development Fund (29%).

The official exchange rate for October 5 was AZN1.70/$1.