Joint Comprehensive Plan of Action (JCPOA) has been signed between Iran and six other countries (P 5+1) in order to lift imposed sanctions on Iran. One of the goals of JCPOA was to improve political and economic relationships with countries across the world and also to facilitate the process of investing in Iran for foreign investors. As discussed in the article of bright future of foreign investment in Iran, according to statistics by Ministry of Economic Affairs and Finance, more than 13 billion Dollars are approved as foreign direct investment in different areas such as water, Gas, Electricity, Services, Constructions, Industry, Agriculture, Mining, Healthcare and some other fields after JCPOA. Although the sanctions did not affect the healthcare sector directly because of humanitarian reasons, they did affect financing flows for the country’s ability to purchase imported medicines or supplying raw materials to produce medicines. Now that sanctions have been lifted, several companies are looking to raise their investment in Iran in pharmaceutical area.
In this regard, Barakat Pharmed Co. which we introduced in Barakat Pharmed Co, a worthwhile investment opportunity article, has signed three contracts with pharmaceutical companies from Switzerland, UK and Denmark for producing medicines, the local newspaper Iran Daily reported citing Hamid Reza Jamshidi, the company’s managing director. Novo Nordisk, which first announced its plans for an insulin factory in September 2015, is to be the first western pharmaceutical company that plans to build a manufacturing plant in Iran after the JCPOA. The Danish company would invest €70 mn in Iran. This company will set up the facility in a four hectares land which is belong to Barakat Pharmed town in order to make insulin pens for not only to increase its access to about 5 million Iranians with diabetes but also to cover the needs of neighbor countries. Novo Nordisk kept its operation in Iran, called Novo Nordisk Pars, during the sanctions era but now plans to add 160 additional staff to the current 130.
Novo Nordisk, the largest manufacturer of insulin and diabetic medicines, provides over 50% of the world’s insulin requirement. The Danish company, with factories in seven countries, offers medicines such as insulin, neoprene insulin, Levemir and long-acting Tresiba insulin in 179 countries.
High statistics on foreign direct investment and several financings after JCPOA shows the high potential of investing in Iran. Iran, with its rich natural resources and expert workforce as an attractive and efficient destination, is now considered by international investors more than before.