Pharmaceutical Industry of Pakistan

ANALYSIS OF PAKISTANI INDUSTRIES
Report On
Pharmaceutical Industry
To:
Sir Shahid Hameed
By:
Ali Abbas Junejo (!""#$
%aisal San&i (!"#"$
'atasha () Tellis (*"+$
,ate: -
th
,ecember. +!/
Pharmaceutical Industry Analysis of Pakistani
Industries
Table of Content
EXECUTIVE SUMMARY
INTRODUCTION
OVERVIEW OF THE SECTOR
i. Background
ii. Role and Importance
iii. Evolutionary Process of Development
iv. Growth Potential
v. Export Potential
PRODUCTION PROCESS
i. low !hart
ii. Production
iii. "torage
iv. #ransportation
v. Distri$ution !hannels
AVAILABILITY OF RAW MATERIALS
i. %ocally &vaila$le Raw 'aterials and their Price "tructure
ii. Imported Raw 'aterials and their Price "tructure
iii. Duties and "urcharges on Raw 'aterials
DEMAND SUPPLY ANALYSIS
i. Export "tatistics of the Product (s)
ii. Import "tatistics of the Product (s)
iii. #otal Estimated Demand (local*foreign)
iv. #otal Estimated "upply (local*foreign)
v. Demand + "upply Gap
vi. uture Pro,ections
MA1OR COMPANIES IN THE SECTOR
i. Industry !oncentration
ii. Performance Indicators of 'a,or Players
iii. !omparative &nalysis of Performance Indicators of 'a,or players
INDUSTRY ANALYSIS BASED ON PORTERS FIVE FORCES MODEL
i. Rivalry &mong Existing irms
ii. #hreat of "u$stitute Products
iii. Potential Entry of -ew irms
iv. Bargaining Power of "uppliers
v. Bargaining Power of Buyers
MA1OR PROBLEMS AFFECTING THE SECTOR
i. 'a,or !hallenges
ii. "olutions
CONCLUSION AND RECOMMENDATIONS
BIBLIOGRAPHY
Institute of Business Management, Karachi
Industries
Executive Summary
#he Pharmaceutical sector of Pakistan is growing at a speedy rate and is contri$uting largely to
the nation.s economy. #he pharmaceutical sector of Pakistan consists of $oth/ local (-ational)
and 'ultinational companies. #he Pharmaceutical manufacturing sector of Pakistan is one of the
$iggest industrial sectors taking care of the medicine needs of country as well as providing
employment to a significant num$er.
#he pharmaceutical industry includes the process of manufacturing and marketing of medication
and other medicinal chemicals. &fter due research/ the product goes into production stages. #his
manufacturing process consists of two ma,or processes0 active ingredient (primary) and
processing and purification (secondary).
Pharmaceutical raw materials comprise su$strates or elements that are used for manufacturing
different types of drugs. 123145 of the raw materials used in pharma sector are imported from
the countries like India/ !hina and Europe. 6e used Porters five forces model to analy7e
industry8s position/ its profita$le and sustaina$ility. In addition the Pharmaceutical industry is
facing ma,or challenges such as Government Price restrictions/ 9il prices/ #rend towards natural
remedies/ :nethical practices/ lack of Electricity and so on;
#o summari7e/ Pakistan.s Pharmaceutical Industry has immense untapped potential to grow and
has the capa$ility to provide high <uality essential drugs at afforda$le prices to 'illions/ locally
and internationally/ and re<uires a well thought out strategy designed $y the government and key
industry players hand in hand. Governments can tackle pro$lems $y using compulsory licensing
and parallel import. #he industry needs =low priced medicines> and on the other hand draws
more technology and foreign direct investment $y providing $etter protection to the patients/
employ high skilled la$or/ and improve <uality and value of industry.
Industries
Introduction
#he Pharmaceutical sector of Pakistan is growing at a speedy rate and is contri$uting largely to
the nation.s economy. #he pharmaceutical sector of Pakistan consists of $oth/ local (-ational)
and 'ultinational companies/ out of the grand total of ?@2 units currently present/ ?2 are
multinationals/ providing direct employment to more than @2/222 and indirect employment to
around A42/222 people across the country. #he Pakistan Pharmaceutical 'anufacturers
&ssociation (PP'&) represents more than A22 of the local companies/ which are classified as
'anufacturing :nits/ Importers or ranchisers/ as well as International su$sidiaries of well3
known worldwide $ased Pharmaceutical !orporations. &ccording to market data/ G"B tops the
list of multinationals with a market share of AA.415 and growth rate of C.15/ while Get7
Pharmaceuticals tops the local list with an average of @25 growth in the last ? years and "ami
Pharmaceuticals also leads the list with a share of D.A15/ more than some multinationals.
Overview of the Sector
#he Pharmaceutical manufacturing sector of Pakistan is one of the $iggest industrial sector
taking care of the medicine needs of country as well as providing employment to a significant
num$er.
Pharmaceutical Key Facts
#he Pharmaceutical manufacturing sector of Pakistan is composed of %ocal

'anufacturers and 'ultinationals.
#ogether they cater for approximately 125 of %ocal market needs.
"ome of Pharmaceuticals are also exporting finished products and thus generating foreign
exchange.
%ocal Research promotion is lacking.
%ocal production of raw materials is low.
Provides direct employment to more than @2/222 and indirect employment to around
A42/222 people across the country.
Prices of all 42/222E drugs are controlled $y government in Pakistan..

Pharmaceutical Capital
#he pharmaceutical industry exceeds FA.G$n which e<uates to per capita consumption of less
than FA2 per year.
"trong export potentialH 'ore than FA22m foreign exchange earned annually for the country.
Industries
-ational pharmaceutical expenditures in comparison with health care and medical devices are
given $elow.
PharmaceuticalsH PBRA4D.1@$n (:"FA.@1$n) in D2A2 to PRBAI1.12$n (:"FA.1C$n) in

D2AA0 EAA.A5 in local currency terms and EA2.I5 in :" dollar terms.
Jealth careH PBR?1C.41$n (:"FG.I@$n) in D2A2 to PBRG4G.I?$n (:"F4.?A$n) in D2AA0

EAG.A5 in local currency terms and EA?.45 in :" dollar terms.
'edical devicesH PBRD1.1A$n (:"F?4Amn) in D2A2 to PBR?G.C@$n (:"FG2@mn) in

D2AA0 EAI.I5 in local currency terms and EAI.A5 in :" dollar terms.
Concern
Pu$lic/ Jealth professionals and Pharmaceuticals must listen passionately to each other to create
a win win situation for every stake holder.
Concerns of Pharmaceutical Sector
%ack of implementation of patent control.
Production and circulation of ake medicines.
Drug price control policy of Pakistan Govt.
%ow per capita expenditure on Pharmaceuticals.

Concerns of Public Regarding Pharmaceuticals
Excess profita$ility on certain medicines.
-on provision of low profit life saving medicines.
Involvement in unethical practices to enhance drug circulation which include individual

and institutional $ri$es.
-ot adhering to strictest of <uality control mechanisms.

Background:
#he pharmaceutical industry develops/ produces/ and markets drugs or pharmaceuticals
licensed for use as medications/ vaccines and services.

Pharmaceutical companies are licensed to
deal in generic $rand medications/ medical devices and services. #hey are su$,ect to a variety of
strict laws and regulations regarding the patenting/ testing and ensuring safety and efficacy and
marketing of drugs. #he word pharmaceutical comes from the Greek word pharmakeia. #he
modern transliteration of pharmakeia is pharmacia.
Role & Importance:
#he primary function of the research3$ased pharmaceutical corporations is to create value $y
discovering and producing effective medicines/ vaccines and services that improve patients.
Industries
well3$eing/ and can $e sold in markets at a profit. &s well as increasing shareholder value/ this
contri$utes significantly to the <uality and protection of life and helps make the world a $etter
place.
In the past I2 years/ innovation and technology have driven huge improvements in glo$al health.
&ccording to the Human Development Report 2010, growth in life expectancy that took over ?22
years to achieve in developed countries has $een secured $y developing countries in ,ust half a
century/ thanks largely to innovations in medicine and other pu$lic health interventions.
Intellectual property has played a key role in this progress. Discovering and developing a new
drug/ conducting clinical trials and gaining regulatory approval can cost around :"FA $illion.
%ess than A5 of the compounds examined in pre3clinical stages are cleared for testing in human
$eings/ and only DD5 of compounds entering clinical trials successfully reach development stage
and regulatory approval. 6ithout patents/ it is estimated RKD outlays would $e reduced $y IG5/
,eopardi7ing the well3$eing of future patients and the innovation process itself.
Evolutionary Process of Development
#he pharmaceutical market is the A2
th
largest in &sia pacific. #he last decade has $een a very
progressive one for Pakistan.s Pharmaceutical Industry/ due to heavy investment in Good
'anufacturing Practices/ which is in line with international guidance and standard. #his
development has allowed the industry to increase its production line from $asic pills to
sophisticated medicine and drugs such as Biotech/ 9ncology and Lalue &dded Generic
compounds. #his suggests that Pakistan pharmaceuticals have a very competitive industry and an
evolving one at that. Despite these encouraging developments it is unfortunate that more than
425 of the population is still deprived of access to $asic health care/ suggesting that opportunity
is a$undant in this sector in terms of demand/ however much effort is still needed on $ehalf of
the industry and the government to improve accessi$ility to healthcare.
&ccording to figure provided $y the PP'&/ #he pharmaceutical industry exceeds FA.G$n which
e<uates to per capita consumption of less than FA2 per year/ and value of medicines sold is
expected to exceed :"FD.? B $y D2AD. Pakistan.s domestic industry holds roughly C25 of the
'arket "hare in terms of volume/ however o$servation suggest that domestic production has
great potential to grow as demand re<uires/ as Pakistan.s pharmaceuticals earn more than FA22m
foreign exchange earned annually for the country. Jowever still/ Pakistan continues to have a
negative pharmaceutical trade $alance according to :nited -ations/ Pakistan imported finished
medicines with a value of :" FD4Dmn in D22C alone/ with most of the imports $eing from
"wit7erland (:" F4G.@m)/ !hina (:" FD1.4m)/ Germany (:" FD@.Im)/ the :B (:" FA@.Im) and
rance (:" FAI.Am) respectively.
Industries
Being a developing Pharmaceutical industry/ the per capita drug spending is <uite low at :"F
1.?2. PP'& statistics suggest that in D221/ :" FA.2I@ $illion of generic drugs was consumed/
followed $y :" F2.?A1 $illion of 9#! medicines and :" F2.D?A $illion of patented products.
Both these facts seem to further press on the need to develop the local pharmaceutical market.
Bey statistics of Pharmaceutical 'arkets
Governments Role
#he government spending on the healthcare amounts to less than A5 of the country.s GDP/
which is considered $elow most "outh &sian countries at 4.AD5 and still low according to world
standards at @.AD5. 'oreover more than I25 of spending on healthcare expenditure is private
still/ in the form of charita$le or international aid mainly $ecause of lack of government initiative
to develop a health plan for the population. Pakistan.s pu$lic sector spending for the M21 was a
mere A4.15 of the total market as compared to the regional average of G@.45/ again suggesting a
disappointing trend/ $ut with great potential to improve with the help of a planned and systematic
approach. In regard to the Budget D2AA3AD Dr. "hahid 'alik/ an expert on health issues/ said if
$udgetary allocations for the health sector were calculated/ the per head contri$ution would not
$e more than D4 paisa.
Industries
Source: Budget 2012-13
'oreover/ issues like inflation in face of the depreciating value of the rupee and high taxes and
duties are also ma,or concerns the industry has presented to the government as Pharmaceutical
products maker do not collect sales tax from customers however they still are re<uired to pay
taxes for their inputs such as utilities/ packaging and raw materials. #he industry has suggested
the duty cut on raw material provided in the D2AD3A? $udget was a small measure for reducing
the medicines prices as the reprieve is much less than the constantly rising cost of production.
Growth Potential
#hanks to advances in science and technology/ the research $ased pharmaceutical industry is
entering an exciting new era in medicines development. Research methods are evolving and we
have many promising prospects on the hori7on + from the possi$ilities offered $y personali7ed
medicines/ to the potential offered $y harnessing the power of $ig data. #he innovative
pharmaceutical industry is driven $y/ and drives/ medical progress. It aims to turn fundamental
research into innovative treatments that are widely availa$le and accessi$le to patients.
&lready/ the industry has contri$uted to significant improvements in patient well3$eing. #oday.s
citi7ens can expect to live up to ?2 years longer than they did a century ago. "ome ma,or steps in
Industries
$iopharmaceutical research/ complimented $y many smaller steps/ have allowed for reductions
in mortality/ for instance from JIL*&ID"3related causes and a num$er of cancers. Jigh $lood
pressure and cardiovascular disease can $e controlled with antihypertensive and cholesterol3
lowering medicines0 knee or hip replacements prevent patients from immo$ility0 and some
cancers can $e controlled + or even cured + with the help of new targeted treatments. European
citi7ens can expect not only to live longer/ $ut to live $etter <uality lives. Met ma,or hurdles
remain/ including many cancers/ and orphan diseases.
Problems & Issues Faced:
&part from the a$ove mentioned issues due to government spending/ there are other issues facedH
%ike most developing countries Pakistan also faces the issue of counterfeit drugs/ an issue
that has gained much deserved media attention.
'oreover the political insta$ility and its resultant effect on investments has also affected
the growth of the industry/ coupled with the weak position if the rupee and its continuous
depreciation.
#here is a lack of training and development in the sector. #he multinationals have made a
positive contri$ution to the industry $y developing the manpower or human resource
through training and development of personnel at various levels such as <uality control/
management and research and development/ as national firms on the other hand mainly
focus on generic products and are more inclined to manufacture than research.
Political insta$ility and the deteriorating law and order situation also has had a negative
impact on sales and the industry as many customers cannot $e reached either due to lack
of infrastructure or the unsafe environment.
&nother area of concern is the lack of marketing plan for pharmaceuticals as they still
rely on traditional marketing such as free drug samples to doctors/ gifts that hold the
company logo or sponsoring medical education.
It pharmaceuticals want to improve R9I they need to adopt new strategies that are in line
with tech improvements and digital technology. It is $est if they use some form of multi3
channel marketing strategy rather than the traditional reliance on the sales force.
Industries
Production Process
#he pharmaceutical industry includes the process of manufacturing and marketing of medication
and other medicinal chemicals. &fter due research/ the product goes into production stages. #his
manufacturing process consists of two ma,or processes/ the first of which involves the
production of the active ingredient (primary)/ which is followed $y further processing and
purification (secondary)0 the latter stage is where the medicinal end3products are created and
tested for pu$lic use. Pharmaceutical products can $e divided into several ma,or categoriesH
In most instances/ the production process follows a $atch flow/ where the particular su$stances
are manufactured in separate periods (!ompliance Report/ EP&/ A11C). #his ends up providing a
cost effective solution to the company/ as the same su$stances and processes can $e used to
create different products in varying configurations of raw material input and processes. Reuse of
e<uipment however induces an additional step in the process/ i.e. cleaning. 6here this is not
feasi$le/ companies may dedicate a production line to a particular process.

'ost Nactive ingredientsN are prepared synthetically in $ulk and the pharmaceutical industry
contains several examples of companies that dedicate to this particular part of the process and
choose to market ingredients downstream/ rather than marketing finished products.
Production processes include distillation/ crystali7ation/ separation/ fermentation/ drying/ etc.
Industries
#he main groups manufactured includeH
3Proprietary products (patented)
3General formula products
3-on3prescription products
#he primary manufacturing process includes chemical synthesis/ fermentation and extraction of
the active ingredient that is to $e used in the intended end product. &ctive pharmaceutical
ingredients/ or &PIs/ are the O$usiness end. of a pharmaceutical product/ and can $e either a
small molecule/ made $y some form of chemical synthesis/ or large $iologics/ which are made $y
fermentation (Pharmaceutical 'anufacturing #rends0 Joulston/ Bottomsley/ D2A?).
9nce/ the active ingredient is manufactured/ it needs to $e presented in a convenient way to the
patient/ e.g. as ta$let/ capsule or in,ection. #his is the process of secondary manufacturing.
9ver the years/ the pharmaceutical industry as a whole has moved from in3house research and
manufacture to a greater outsourcing of the manufacturing process. #hese may $e contracted or
licensed downstream production companies/ as is seen with multinational companies looking to
expand to a greater glo$al market. In the $eginning of the production lifecycle/ only the patent3
holder is allowed to produce the drug/ however with rising costs the generic market has $ecome
increasingly lucrative.
Generic manufacturers tend to diversify upstream into the primary production industry. In
Pakistan/ the active ingredients for end3products are imported and produced following the glo$al
standards.
Availability of Raw Material
Pharmaceutical raw materials comprise su$strates or elements that are used for manufacturing
different types of drugs.
123145 of the Raw materials used in pharma sector are imported from the countries like India/
!hina and Europe. Pakistan needs to develop market for the raw materials. #he raw materials are
imported from India and !hina $ecause they are cheap.
&lmost as much as 125 of the needs are fulfilled $y India and !hina. Rest are done $y European
countries
Industries
#here are five units operating in Pakistan for the "emi Basic 'anufacturing of pharmaceutical
raw material and still Pakistan has the capacity to a$sor$ the significant investment in this field.
Pharmaceutical raw materials are essential to producing pharmaceutical drugs and include active
pharmaceutical ingredients (&PI)/ also known as $ulk active.
Pakistan needs to make their own raw materials $ecause it can cause $alance of payment crises.
SOT Analysis
Strengths
3 JP products
3cheap la$or
3continuous improvement
3efficient capacity management
Weakness
3-o govt regulatory authority
3%ack of Research and development
3Price restriction
Opportunity
3'olecule
3'arket potential for veterinary products
3%arge population
3unhygienic condition
3Bad eating ha$its
Threat
3government policies
3exchange rate fluctuations
3inflation risk
3terrorism
3price restrictions
Industries
!emand " Su##ly Analysis of
Pharmaceutical Industry$
Pakistan exported FD22 million worth of medicine and imported atleast F4?.A2 million worth of
medicinal products and inputs from India / Pakistan / and Europe in D2AD. #otal demand for
national market is met @25 $y national and international companies. #he spending rate per
person on medicine is A25 a year. #he spending ratio of pharmaceutical products per GDP is A5
of total Pakistan8s GDP. Pharma industry is $uilding awareness and to increase the GDP
consumption ratio for medicine. Pakistanis don.t spend much on healthy lifestyles / they are
luxury consumption nation $ut at the same time they lack awareness of healthy living standards .
Pharmaceutical industry is working hard to $uild awareness amongst the people.
By the time of D2?2 / population aging I4E would dou$le/ that raise the level of prescription
would increase four folds / Pakistani Pharmacy industry has to cater this colossal demand.
Ma%or Com#anies in Pharmaceutical
Industry
Major Players in Sector
1. GSK (Glaxo Smith Kline)
G"B is the market leader in Pakistan/ the $est3selling product called &ugmentin an anti3$iotic is
a G"B product. Its current market share is A2.??5/ the growth rate is AA.G5.
2. Abbot
&$$ot is second in line with market share of I.45 / its star product is Brufen a pain killer .
Growth rate of &$$ot A@5 per year.
Industries
3. Getz Pharma
Get7 pharma is third $iggest pharmaceutical firm in Pakistan/ Get7 pharma owns Risek it is also
third $est selling product in Pakistan. Get7 pharma8s market share is G.1 5 and growth rate is
phenomenal with DC5.
4. Sami Pharmaceutical
"ami pharma is the fourth $est pharmaceutical company in Pakistan. -ovartis8s market share is
G.G5. Growth Rate of DI.A5
5. Novartis
-ovartis is a multinational pharmaceutical firm with market share is G.?5 and growth is A45.
Performance Indicators Of Major Players
Growth Product Growth 'arket "hare 'a,or
!ompanies in
'arket
@.G5 &ugmentin AA.GG5 A2.??5 Glaxo "mith
Bline
DD.D25 Brufen(pain
killer)
A@5 I.45 &$$ot
DI5 Risek DC5 G.15 Get7 Pharma
DI.D25 -ovidat DI.A5 G.G5 "ami
Pharmaceutical
AC5 Loltral A45 G.?5 -ovartis
Industries
Concentration of Industry
Pharmaceutical industry of Pakistan has approximately I22 firms . Its ma,or five players have
?D5 of market share . !oncentration of the industry is low comparing the other industries of
Pakistan.

Porter' Five Forces Model
Porters five forces model is used to analy7e industry8s position. It determines whether it is
profita$le. It also defines sustaina$ility of the industry. Industrial dynamic are essential to state
the overall position of a certain industry.
Industry Rivalry
Industries
Industrial analysis of the Pharmaceutical sector uncover that rivalry among the firms is low. It
consists of I22 firms and most of them compete on terms of cost <uality and efficiency. #here
are few / which use foul practices of $ri$ing the medical practitioners. 'ost of them are ethical
and straightforward.
Bargaining Powers Of Suppliers
Bargaining power of suppliers in pharmaceutical industry is high. #he inputs are $ought from
few firms in contrast with large num$er of pharmaceutical firms in Pakistan. "uppleirs are
located in developed countries of the world and they are few in num$er.
Bargaining Power Of Customers
or understand the dynamics of customers in pharmaceutical industry of Pakistan. 6e have to
analy7e that pharma products are sold through medical practitioners. It is upon them to opt for
appropriate product for patients. or well3esta$lished products firms don.t put an effort $ut for
new products they work hard.
#he esta$lished names in industry have low customer $argaining power $ecause of their strong
ethical images/ $est products in their portfolio /and the amount they spent on RKD for instance
-ovartis spent C.4 $illion F on RKD in D2AD glo$ally.
"mall players in industry have high $argaining power of customers $ecause they are new in
market / their products are not known . "ome of these companies also opt for unethical practices
to gain $argaining power.
Threat Of New Entrants
Pharmaceutical industry already has I22 firms competing with each other. 'ulti3national and
national firms are already working hard to increase the market share. In this scenario an entry of
a new player is difficult $ecause the forces at work of this sector are different. Products which
they sell are crucial for human $eings life. #he investment for setting up a new pharmaceutical
industry is also very high.
Threat Of Substitute Products
Research and Development is essence of pharmaceutical industry. irms continuously invest in
RKD to come up with $etter products at low costs. Patents amorti7e and any small company can
Industries
make the same product. #he firm that has not invested anything can take $enefits of someone
else8s creation. #hreat of su$stitute products in the sector is high.
Ma%or Problems Affectin& the Sector
Major challenges
Pharmaceutical industry in the country is facing a lot of challenges in Pakistan. "ome of the most
important challenges are0
1. Government Price restrictions: #his is a huge challenge for the companies investing high in
research and development along with marketing expenditure. Especially when we talk a$out the
companies like -ovartis/ Roche/ &$$ott/ Get7 and G"B which have $een investing great amount
of money on $oth Research and development and marketing expense. #here hasn8t $een any kind
of leniency shown to these companies/ hence discouraging them to invest lesser on RKD which
can $e detrimental for the growth of industry in the country. Plus <uality oriented companies
may reduce the <uality if price is not increased.
2. Oil prices: "ince there has $een a price hike in international oil prices the cost of production
has dou$led .9il is an essential commodity and a small increase in its price can cause a lot of
increase in the cost of production of industries.
3. Dollar value increase: Rupee has $een depreciating at a really fast rate/ which again/
increases the cost of production as most of the raw materials are imported from different
countries of the world including India/ :" and "wit7erland. &s these imports are in dollars/ and
Rupee $eing undervalued/ it can cause a lot cost for the local manufacturers.
4. Trend towards natural remedies: People are $ecoming health conscious and therefore there
is a trend that people are going for old school natural remedies rather than anti $iotic as there are
so many side effects related to anti $iotic and other similar medicines.
Industries
5. Unethical practices: "ome low <uality producing companies have $een gaining a fair amount
of market $y $ri$ing the doctors. !ompanies making high <uality drugs after spending on RKD
are affected due to this/ as they don8t get enough market shares.
6. No governing body: there isn8t any governing $ody of pharmaceutical industry in the country
which can solve the pro$lems of pharmaceutical industry and get the re<uired tasks done from
the government.
7. Electricity: %ike with other industries in Pakistan/ pharmaceutical industry also has this
pro$lem as power crises leads to other pro$lems including high cost low production/ hence
productivity is not achieved.
8. High Skilled labor: Pakistan doesn8t have high skilled la$or and this has already caused low
research and development $udgets of local pharmaceutical companies. Plus $rain drain is also
among the reason $ecause all the high skilled la$or goes to other countries.
Solutions:
A. &ttract foreign patients to the country/ encourage the private sector to administer
advanced treatments. Pharmaceutical industries in Pakistan will drive the overall market/
resulting in increased national wealth.
D. Improve pricing and reim$ursement systems which can improve <uality and value of
industry.
?. Enhance I# + oriented or scientific assessment of pharma knowledge and resources from
different partners towards the generation of latest information/ approaches and actions.
G. Increase accessi$ility and transparent dissemination of information among doctors.
4. Invite and recogni7e the role of a national authority to act as a governing $ody to make
good practice principles and rules for relative effectiveness that will set the scene for the
scope of future work.
I. Employ high skilled la$or for local pharmaceutical companies.
Conclusion and Recommendations
Despite the a$ove mentioned statistics/ Pakistan.s Pharmaceutical Industry is still in the
developing stages and has potential to improve. #he Pakistan Pharmaceutical 'anufacturers
&ssociation (PP'&) forecasts healthcare spending as a percent of GDP are expected to reach
Industries
D.2A5 $y D2AG. 'oreover/ the generics sector is expected to grow during the coming years as
ma,or drugs come off3patent in the future. Pakistan.s industry also features production methods
and <uality standards that are approved $y regulatory authorities all over the world. !onsidering
export potential/ Pakistan.s pharmaceutical industry is focusing to an Export Lision of :"D 422
'illion $y D2A? according to the PP'&. #he main $arriers that need to $e considered include
the lack of local raw material and the o$vious lack of research initiative. 'oreover/ the lack of
government attention to the healthcare sector also acts as a ma,or impediment to the growth of
this sector.
#o summari7e/ Pakistan.s Pharmaceutical Industry has immense untapped potential to grow and
has the capa$ility to provide high <uality essential drugs at afforda$le prices to 'illions/ locally
and internationally/ and re<uires a well thought out strategy designed $y the government and key
industry players hand in hand. Governments can tackle pro$lems $y using compulsory licensing
and parallel import. #he industry needs =low priced medicines> and on the other hand draws
more technology and foreign direct investment $y providing $etter protection to the patients/
employ high skilled la$or/ and improve <uality and value of industry.
'iblo&ra#hy
1. Interview with
Mr. Malik Ayaz
"ales 'anager !entral
-ovartis
EmailH aya7.ahmedQnovartis.com
Mr. Asad Abbas
Director 'arket K "ales
9B" Pharma
EmailH asad.a$$asQo$s.com.pk
Mr. Sohrab Bhojani
Institution 'anager
Jori7on Pharmaceutical
Industries
EmailH sohra$.$ho,aniQhori7onpharma.net.pk
2. IMS Report
3. Wikipedia
www. wikipedia .org
4. Pakistan Pharmaceutical Manufacturers Association (PPMA)
www.ppma.org.ok
5. Express Tribune
www.tri$une.com.pk
6. Medicine Pakistan
www.med.pk

Pharmaceutical Industry of Pakistan

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Pharmaceutical Industry of Pakistan

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ANALYSIS OF PAKISTANI INDUSTRIES

#he Pharmaceutical manufacturing sector of Pakistan is composed of %ocal

#ogether they cater for approximately 125 of %ocal market needs.

%ocal Research promotion is lacking.

%ocal production of raw materials is low.

Prices of all 42/222E drugs are controlled $y government in Pakistan..

PharmaceuticalsH PBRA4D.1@$n (:"FA.@1$n) in D2A2 to PRBAI1.12$n (:"FA.1C$n) in

Jealth careH PBR?1C.41$n (:"FG.I@$n) in D2A2 to PBRG4G.I?$n (:"F4.?A$n) in D2AA0

'edical devicesH PBRD1.1A$n (:"F?4Amn) in D2A2 to PBR?G.C@$n (:"FG2@mn) in

%ack of implementation of patent control.

Production and circulation of ake medicines.

Drug price control policy of Pakistan Govt.

%ow per capita expenditure on Pharmaceuticals.

Excess profita$ility on certain medicines.

-on provision of low profit life saving medicines.

Involvement in unethical practices to enhance drug circulation which include individual

-ot adhering to strictest of <uality control mechanisms.

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