AP27510485: Price shocks and production localization of diabetes drugs: a comparative analysis of Kazakhstan and Russia. 147,000 USD for 2025-2027. Ministry of Science and Higher Education of the Republic of Kazakhstan.
More than 10.5% of the adult population worldwide has diabetes. In Kazakhstan, 7% of the adult population has diabetes - the largest share among Central Asian countries. In Kazakhstan, the government spending on medical provisions for treating diabetes reaches 90M USD annually, exceeding public spending on drugs for treating cancer and cardiovascular diseases. Nevertheless, the supply of diabetes drugs is limited in Kazakhstan, and most of these drugs are imported. On the contrary, Russia localized the production of many diabetes drugs. The dependence on international producers makes Kazakhstan’s pharmaceutical market vulnerable to price shocks induced by currency exchange rates and supply chain disruption. This project aims to study the price sensitivity of diabetes drugs to the currency exchange rates and the effectiveness of policies that can mitigate this sensitivity, such as production localization and price caps, in the comparative setting of Kazakhstan and Russia.
The project chases three goals:
1. Conduct a comparative analysis of regulations and describe retail and public procurement markets for diabetes drugs in Kazakhstan and Russia.
2. Empirically study how changes in the cost of imports associated with the currency exchange rates are passed through to the prices in retail and public procurement markets for diabetes drugs.
3. Empirically study the effect of production localization for some diabetes drugs in a setting of regulated prices.