Pharmaceutical industry of Pakistan is around US$ 2 billion with an annual growth rate of 12.9% per annum.
The 600 firms (over 400 domestic manufacturers and approximately 200 major importers) together produce 40,000-odd formulations in the country. Despite high competition and price wars, drug prices are controlled by a strict regulatory policy.
(Thursday, September 13, 2007
The pharmaceutical market comprises of large Multinational Companies which are producing and marketing research based products and also other big and small National companies which pre-dominantly produce and market generic products.
Out of total market of US$ 2 billion, 53.3% is captured by Multinationals and 46.7% is taken up by National companies. The top 50 companies enjoy more than 80% market share. There are 20 multinationals in the top 50 companies, while the top 100 companies have 94.0% market share.
Only 2 manufactures are involved in the manufacture of raw materials.
Having no recourse to a single price increase since December 2001, the pharmaceutical sector will be under pressure to maintain its profitability in the face of inflationary pressures and currency devaluation
The total outlay on the health sector is budgeted at Rs.38.0 billion, which has increased by 15.8 percent over last year.
The existing network of medical services consists of 12,260 hospitals, 113,000 doctors practicing, 4582 dispensaries, 5301 Basic Health Units (BHU), 552 Rural Health Centers (RHC), 906 Maternity and Child Health Centers (MCH) and 289 Tuberculosis Centers (TBC). total expenditure on health has increased from PKR 4.37 billion to PKR 6.04 billion, which is 31.86% higher than the last year.( as of 2006)
Category of local production
Market potential of Pakistan is good for Antibiotics, Vaccines, Analgesics, Tranquilizers Hormones, Anti-hypertensive, Anti-ulcer ants, Cardiovascular, Anti-cancer, Psychiatric, Contraceptives and birth control drugs.
There are close to 125 categories of medicines produced locally including all kind of vitamins, anti-allergic, alkaloids, ointments, cough syrups, etc. Many of the manufacturing units are ISO certified adhering to UK and US Pharmacopoeia, according to a study by Frost & Sullivan
Active Pharmaceutical Ingredients (API’s)
(Alkaloids, Amino Acids, Antibiotics, Hormones, Peptides, etc)
Prices of many pharmaceutical products are much higher in Pakistan as compared to India. The main reason behind this is that most of the basic pharmaceutical raw materials are imported.
Total population of Pakistan is approximately 161 million (2006 statistics) and the population growth rate is 2%.
Pharmaceutical industry in Pakistan is at PKR 70.89 billion and growing at 12.9% per annum ($ 2 billion ) and showing a positive trend hence attracting local and foreign investment in Pakistan.
Since 1999 , 2,500 new drugs have been registered
Although it registered a fairly robust growth during 2006-07, the total market in Pakistan remains small in relation to our population size. If the industry maintains this growth rate, it is projected to reach 2.2 Billion in the next for years.
Nearly 95% ( Approx $ 450 million) of the basic raw material used for manufacturing is imported from countries like China, India, Japan, UK, Germany and others.
Role of Government
The total outlay on the health sector is budgeted at Rs.38.0 billion, which increased by 15.8 percent in 2006 over last year.
Government of Pakistan had invested Rs.8 billion in the pharmaceutical industry since 1999 to guarantee good quality drugs at competitive prices.
Pakistan Health Ministry is considering to constitute a committee comprising of the World Health Organization (WHO), Pakistan Pharmaceutical Manufacturers Association (PPMA) and Health Ministry to keep check on the quality of drugs available in the market. According to statistics by Ministry of Health 41.2% of the Pakistani population cannot afford procuring medicines due to high prices in the country.
The government has set up an independent Drug Registration and Pricing Authority. In Pakistan the Ministry of Industries decides about the drug pricing.
In the biotechnology sector, Pakistan has initiated many programs. It is planning to set up biotechnology plant worth Rs.400 million to meet the growing needs of quality medicines in the country.
The move is being taken in the field of medicine by the private sector in collaboration with investors The plant would start production within the next few years. Several countries have expressed keen interest to invest in Pakistan due to the pro-active policies of the government.
While substantial increases in public sector spending have been witnessed in recent years.
Some major public sector programs have been initiated to address the healthcare needs of the population. These include:
- The National Program for Family Planning and Primary Health Care
- The Expanded Immunization Program
- National Program for Hepatitis Prevention and Control
- National Tuberculosis Control Program
- National Malaria control Program
- National HIV/AIDS Control Program
- Women's Health Program
Tariff protection is generally allowed to encourage local manufacture of APIs.
Federal Government is working on the important subject of DRA and will make sure that it accommodates the expectations and objectives of the local pharmaceutical industry without compromising on good standards
The government has also formed a policy recently allowing companies to produce raw materials locally. Companies in Pakistan rely heavily on China, India, Germany, UK and Japan for raw material imports.
The Ministry of Commerce has given 50% subsidy to pharmaceutical companies for registration of their exported products in foreign countries for export from 1998 to 2003.