TEHRAN – Iran’s National 
Petrochemical Company (NPC) and the Syndicate of Pharmaceutical, Chemical and Pharmaceutical Packaging Manufacturers signed a memorandum of understanding (MoU) aimed at completing the petrochemical-to-pharmaceutical value chain and strengthening the sustainable supply of raw materials.
Mohammad Motaqi, NPC’s director of downstream industries development, said the company’s participation in the eighth Pharmex exhibition for the third consecutive year was focused on identifying existing capacities across the petrochemical and pharmaceutical value chains and exploring opportunities to expand them.
He said the needs of Iran’s pharmaceutical industry should first be identified and prioritized and then matched with petrochemical capacities and products to determine where the value chain can be expanded and greater value added created.
Motaqi said some parts of the chain still have untapped potential and missing links, adding that identifying those gaps would help develop specific investment opportunities and present them to interested investors.
“By connecting the petrochemical and pharmaceutical industries, we can not only complete the value chain but also create significant added value and support employment and industrial development,” he said.
Motaqi said petrochemical products are generally manufactured and supplied according to industrial standards, while products entering the pharmaceutical chain must also meet the sector’s specific requirements and standards.
Some petrochemical materials require specialized purification and preparation before they can be used as pharmaceutical raw materials, he said, adding that such processes must comply with pharmaceutical standards.
He identified intermediates as a key area for development, noting that an important layer exists between petrochemical products and final pharmaceutical products.
“One of our priorities is to convert petrochemical raw materials into intermediates required by the pharmaceutical industry and establish an important link between petrochemicals and pharmaceutical raw materials,” Motaqi said.
He also pointed to petrochemical capabilities in medical equipment and polymer products, saying another part of the value chain involves polymers and materials used in medical equipment, supplies and packaging.
Motaqi said the importance of the agreement lies in the practical process that must begin following its signing.
Iran’s petrochemical industry has substantial capacities in basic and intermediate materials, while the pharmaceutical industry has strategic needs for raw materials, intermediates and active pharmaceutical ingredients (APIs). The key challenge, he said, is to connect these two capacities.
He stressed that the objective is not simply to add another segment to the petrochemical value chain or reduce imports, but to determine which value chains are technically, economically and technologically viable, identify missing links and define projects to complete them.
The MoU provides for developing a petrochemical-pharmaceutical value-chain roadmap, identifying pharmaceutical raw-material requirements, determining necessary technologies and raw-material standards, and creating a portfolio of strategic projects.
Motaqi said implementation should begin immediately, starting with a detailed assessment and prioritization of the pharmaceutical industry’s actual needs.
The next steps will involve matching those needs with petrochemical capacities, identifying missing links, developing projects with technical and economic feasibility studies, and presenting them to capable investors and companies so they can progress from studies and concepts to investment and production.
The agreement also calls for establishing a joint steering committee and secretariat to ensure continuous follow-up and implementation.
Faramarz Ekhteraei, chairman of the board of the Syndicate of Pharmaceutical, Chemical and Pharmaceutical Packaging Manufacturers, said the agreement could facilitate the development of petrochemical products from basic materials to finished products and generate greater value across the chain.
He expressed hope that implementation of the MoU would not only support the supply of basic materials required by the pharmaceutical industry but also pave the way for investment and joint projects between the syndicate and Iran’s petrochemical companies.
The MoU was signed by Motaqi and Ekhteraei during the closing ceremony of the eighth International Pharmex Exhibition.
Under the agreement, the two sides will identify petrochemical capacities and pharmaceutical industry requirements and pursue cooperation to convert basic and intermediate petrochemical products into specialty chemicals, pharmaceutical intermediates and active pharmaceutical ingredients.