Azerbaijan is pushing forward on multiple fronts of non-oil
economic diversification, and its pharmaceutical sector is
increasingly emerging as a key pillar. Specifically, starting from
next year, the government aims for a strong, radical, and
long-awaited shift from oil and gas dependence. The inauguration of
a major production facility by Scandens Pharmaceutical Industries
Ltd. in the Absheron district signifies more than just a business
expansion. It represents a strategic bet on the country’s future as
a regional pharmaceutical hub.
On November 22, 2025, President Ilham Aliyev officially opened
the Scandens plant in Hokmali, Absheron, accompanied by Economy
Minister Mikayil Jabbarov and Scandens CEO Kamran Hasanov.
The facility, built to international standards with equipment
from Germany, Switzerland, and Italy, is designed to manufacture
approximately 800 million tablets and capsules per year across a
wide range of therapeutic areas — including antibiotics,
diabetology, hepatology, cardiology, allergology, gastroenterology,
and more.
Backed by private investment worth 74 million manats, the
project also benefited from government support: under an investment
promotion document, Scandens received 6.5 million manats in
concessions for imported equipment.
In USD terms, 74 million manats is roughly US$43.7 million, and
6.5 million manats is about US$3.6 million.
The plant currently employs 120 staff.
Scandens is not just another assembly-line factory. According to
its own site, the company is the first in Azerbaijan to support a
full production cycle of solid oral dosage forms (tablets,
capsules, granules), backed by a full quality-control lab.
Beyond the initial 800 million-unit capacity, Scandens has
projects to expand production of ointments, suppositories, and even
sterile products (ampoules, infusions).
This means that all stages — from raw material processing to
finished drug — will increasingly be done domestically, reducing
dependency on imports and potentially improving access for local
patients.
The new plant is also designed as a training hub. Under a
four-party Memorandum, Scandens is partnering with Azerbaijan
Medical University, Hungary’s University of Pécs, and Pannon Pharma
to run internship and training programs for both pharmaceutical and
non-pharmaceutical professions.
On the sustainability front, Scandens has installed 710 solar
panels on its roof with a combined capacity of 450 kW, which allows
the facility to satisfy about 40 percent of its energy needs from
renewable sources. The company also emphasizes environmental
responsibility, treating its industrial waste on-site and aiming
for zero liquid discharge.
Scandens’ story comes at a pivotal moment for Azerbaijan’s
pharmaceutical industry. Domestic output is growing quickly. In
2025, the sector reported 81.5 percent growth.
Historically, the country has relied heavily on imports.
According to a World Bank report, imports made up about 60 percent
of the domestic drug market, and informal/unregulated markets were
sizable.
In 2025, pharmaceutical imports continued to rise. From January
to February, Azerbaijan imported US $90.63 million worth of
medicines, 14.3 percent more than in the same period of 2024. This
underscores how critical it is for domestic production to scale,
both for health security and economic resilience.
The Scandens plant is part of a broader push to embed
pharmaceuticals within Azerbaijan’s non-oil industrial strategy.
The Pirallahi Industrial Park, for example, is explicitly
specialized in pharmaceuticals. This industrial park hosts
companies that manufacture medicines jointly with foreign partners,
helping to transfer technology and scale up local capabilities.
Over the decades, Azerbaijan has aimed to reduce its dependency
on imported medicines. As early as 2015, officials noted that up to
97 percent of medicines were imported. Today’s advances suggest
real progress on that front.
What this means for export potential and economic
diversification?
Strengthening local pharmaceutical capacity isn’t just about
health; it’s also about trade. By producing at scale with
international-grade quality, Azerbaijan could begin to export
medicines to neighboring markets and beyond.
Already, Scandens is talking about exports alongside domestic
supply. Meanwhile, the government’s support for high-quality
production and investment is aligned with broader diversification
goals, including boosting non-oil exports.
The development of Scandens and the wider pharmaceutical sector
fits neatly into Azerbaijan’s long-term economic vision. By
investing in high-technology production, the country reduces its
vulnerability to external shocks in medicine imports and taps into
global demand for generic and specialty drugs.
Moreover, the facility’s environmental footprint (with solar
power and waste recycling) aligns with global sustainability trends
and helps build Azerbaijan’s reputation as a responsible industrial
actor.
