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The Pharma
Discussion
Pharmaceutical Industry
Pakistan (A brief Overview)
A discussion with
Presenters
Kamran Shahid Bukhari (Sp06-bb-0042)
Muhammad Danish Anwer (Sp06-bb-0056)
Agenda
Pharmaceuticals
Historical Background
Importance Of Pharmaceutical Industry
Current Situation
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Category of local production
Linkages
Pricing
Growth
Imports/Exports
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Role of Government
Health Sector
Health Policy
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Problems
Impact of WTO
Social Impacts
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Recommendations
Questions?
Pharmaceuticals
At the end of 1999 more than 75,000 medicines were being sold
in the market.
Pharmaceuticals
Historical Background
Importance Of Pharmaceutical
Industry
Current Situation
Category of local production
Forward Linkages
Glass bottles
Plastics
Paper
Printing
Packaging
Engineering
Pricing
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.
Growth
Total population of Pakistan is approximately 161
million (2006 statistics) and the population growth
rate is 2%.
Value 2001 Value 2002 Value 2003 Value 2004 Value 2005
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Value 2001 Value 2002 Value 2003 Value 2004 Value 2005
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Pricing
Growth
Imports/Exports
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.
Infectious diseases
Malaria
Tuberculosis
Accidents, poisoning and violence
Heart and circulatory system diseases
Diabetics
Tumors
Health Sector (cont)
Other Issues:
Poor quality of available health services in both sectors.
High focus on curative, rather than preventive, health and medical care.
Most facilities located in the urban areas.
Access to health and facilities determined by wealth and income.
Huge Private Sector
Poor delivery of health services and no accountability.
Pakistan has 0.73 physicians per 1000 population and 0.31 nurses
per 1000 population.
The total health expenditure on per person is approx Rs.4.5.
Health Policy
Health Policy
Problems
The pharmaceutical industry in Pakistan needs to
catch up on the problems faced like
#. Pricing of drugs
#. Private public partnerships at government
ministries
The Patent Ordinance, which has been brought to
ensure intellectual property protection and data
exclusivity as per the WTO norms has recognized
provisions for pre-grant opposition, compulsory
licensing etc.
Counterfeit drugs
Impact of WTO
Pakistan, on its part, signed the contract in 1994. At that time,
the industry standards did not comply with the WTO standards.
The WTO era brings about the law of the jungle where only the
fittest shall survive – and IT will be a critical factor in determining
that.
Impact of WTO (cont)
Patents
To comply with WTO standards the product should be
patented
Prices
Increased competition lowers the price which would result
in low profitability for local manufactures.
Competition
When there would be equal opportunity for other nations
to trade their Pharmaceutical products in Pakistan. The
competition in the local industry would rise. (India alone
can attain 25% of the Pakistani Pharmaceutical market).
Impact of WTO (cont)
Development of Health Sector
Harmonization of standards
Globally recognized standards will become the
benchmark of the Pakistani Pharmaceutical Industry,
which would require intensive capital expenditure.
Social Impacts
Recommendations
Initiatives for business opportunities:
#. API business
#. Research based products
#. Generics
#. Pharmacists role in community
#. Strategic alliances for exports
#. Diversification of Pakistan local companies
In all these initiatives, India can take a leading role
to assist in developing pharma market of Pakistan.
Recommendations (cont)
Other than just producing more medicines, the
government needs some decisive actions to
promote public health and wellness through
education and information.
Any Questions