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An Overview of Pakistan Pharma Industry - Tribute To Senator Abdul Haseeb Khan

Tanzeel ur RehmanPakistan has a very vibrant and forward looking pharma industry. At the time of independence in 1947, th

pharma industry in the country. Today Pakistan has about 400 pharmaceutical manufacturing units includby 25 multinationals present in the country. The Pakistan pharmaceutical industry meets around 70 per cdemand. The domestic pharma market, in terms of market share is almost evenly divided between the na

and multinationals.The industry provides direct employment to over 70,000 and indirect employment to around 150,000 acr

National pharma industry has shown a progressive growth over the years, particularly over the last one d

has invested substantially to upgrade itself in the last few years and today the majority industry is followiManufacturing Practices (GMP), in accordance with the domestic as well as international guidance. Curren

the capacity to manufacture a variety of products ranging from simple pills to sophisticated biotech, oncoadded generic compounds.

Although Pakistan's pharmaceutical and healthcare sectors are expanding and evolving rapidly, about hal

no access to modern medicines. Clearly this presents an opportunity, but much more work needs to be do

government and industry stakeholders. The value of pharmaceuticals sold in 2007 exceeded $1.4 billion, capita consumption of less than $10 per year and value of medicines sold is expected to exceed $2.3 billioPakistan is a developing pharmaceutical market, with a large population and economic progress evident, b

spending was rather low at around $9.30 in 2007. Private spending accounts for 65 per cent of total healtsourced through out-of-pocket payments, international aid and religious or charitable institutions. Pharma

accounts for less than 1 per cent of the country's GDP, comparable to levels in some neighbouring countr

period is likely to witness the marginal strengthening of the generics sector, albeit more in terms of volumshare of generics is also likely to increase further as major drugs come off the patent in the near term, tothe generics-dominated local industry.

The Pakistan pharma industry is relatively young in the international markets with an export turnover of o

of 2007. Pakistan Pharma Industry boasts of quality producers and many units are approved by regulatorthe world. Like domestic market the sales in international market have gone almost double during last fiv

industry is focusing an Export Vision of $500 million by 2013. In the meantime, exports are also likely to

regional and global opportunities.The Pakistan Pharmaceutical Industry is a success story, providing high quality essential drugs at affordaTechnologically, strong and self reliant national pharmaceutical industry is not only playing a key role in p

sustaining development in the vital field of medicine within the country, but is also well set to take on the

markets.The country's pharmaceutical exports were $101 million in 2006-07 and growing at an annual rate of 22 p

exports hit the mark of $83 million. Export target for FY2008 had been projected at $125 million.On the other side of the border, Indian pharmaceutical exports stand at $6 billion, growing at a pace of 2Country's spending on health as percentage of GDP was only 0.8 per cent as compared 5-6 per cent in Srcent in Bangladesh, 6-7 per cent in Algeria, 5-7 per cent in Mexico, 6-9 per cent in Iran and 10-15 per ce

Cuba.Economy contribution and Importance

Being one of the major indicators of economy, pharma industry has contributed positively so far and has to increase production by a meager 1 per cent. Similarly industry contribution and weightage surged to 6

Large Scale Manufacturing (LSM) production during 1QFY09.On the other hand, LSM posted 6.20 per cent negative growth in 1QFY09 over the corresponding period omainly due to deteriorating economic of the country.

ChallengesThe fast-deteriorating business environment especially for the pharmaceutical companies in the wake of hproduction has been burdening the local pharma sector.Also, the cap on drug price by the government for the last seven years has aggravated the situation furth

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increase, which was of 3 to 4 per cent, was allowed by Ministry of Health in December 2001.The prices of the Active Pharmaceutical Ingredients (APIs) used for the manufacturing of drugs as well as

materials like paper, plastic, glass, rubber, etc. have increased manifold since 2001. The cost of oil, gas, transportation and labour has also spiked dramatically during this period.Bristol-Myers Squibb (BMS)has an annual turnover of around Rs 1.5 billion and is the second multinatpharmaceutical, which is going to kiss Pakistan goodbye. Earlier, Merck Sharp & Dohme (MSD) closed dow

Pakistan some months back and was acquired by a local pharmaceutical firm Organon Bio Sciences (OBS"It is not the end but a new beginning for the pharmaceutical firms", said a pharma industry lynchpin. "Esshutting down business because of tough business conditions," added he. He also pointed out that more a

mulling to close operations in Pakistan."After MSD and BMS, two more firms will follow suit in the near future," he said and added that the local pcompanies are also facing hard times as well and they are opting for mergers to survive in the present sitlocal pharmaceutical companies Hilton Pharma and SAMI Pharmaceutical consolidated their operations in

the current situation.