Newsletter on pharmaceutics for January 2020

This legal alert highlights the most important legal developments of January 2020 that affect the Uzbek pharmaceutical industry as a whole and activities of foreign pharmaceutical producers and their representative offices in Uzbekistan in particular.

 1.   TASHKENT PHARMA PARK

• The President has signed a Decree envisaging the creation of an innovative pharmaceutical research and production cluster – the “Tashkent Pharma Park”. Goals of creating the cluster include (i) the development of the Uzbek pharmaceutical industry through the application of innovative solutions and high-end technologies based on relevant international experience and (ii) the creation of specialized educational infrastructure for training qualified personnel based on the best foreign practices.
• The cluster will consist of the Pharmaceutical Technical University and an industrial zone for manufacturing innovative medicines, medical devices, and equipment;
• Annex 3 of the Decree provides for a list of promising investment projects proposed to be implemented within the territory of the Tashkent Pharma Park. Another investment project may also be considered. Decisions on implementing particular projects are taken by the Agency for the Development of the Pharmaceutical Industry.

Presidential Decree No. PP-4574 of January 28, 2020

 2.   REGULATION OF BUSINESS ENTITIES  

• The Law on Limited and Additional Liability Companies, the Law on Joint-Stock Companies, and the Law on the Audit Activities have been amended.

The following rules related to mandatory external audit have been added:

• Limited/additional liability companies with the net book value of assets exceeding 100,000 times the baseline calculation value (approx. USD 2,3 mln) are now subject to mandatory annual audit by an independent audit company;
• The entering of a joint-stock company into large transactions (in simple terms, the acquisition or the disposal of property for the sum exceeding 15% of the company’s total net assets) or a transaction with an affiliated party, the total cost of assets of which exceeds 10% of the total net value of joint-stock company’s assets, may not be approved until terms of such transactions have been reviewed by an independent audit company;

It is also of interest that the following provision has been added to the Law on Limited and Additional Liability Companies:

• If participants of a company cannot reach a decision on particular matters related to managing the company owing to the lack of a required number of votes because of some irreconcilable disagreement, such a conflict is to be resolved in court.

All the described changes will enter in force starting from April 22, 2020. 
 
Law of the Republic of Uzbekistan No. ZRU-603 of January 22, 2020

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Kosta Legal Law Firm