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˜ Pharmaceuticals are substances that are

aimed to treat, cure, prevent, or recognize
diseases and relieve pains through their

˜ Global market size is approx $770-780

bn with low growth of 3-4% in
2009 .(

˜ Canada and USA has 47.7% share.

˜ Pakistan's $1.61bn market (pharmaceutical(
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Major Players in PAKISTAN



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Updated till 2003

˜ There are currently over 400 pharmaceutical manufacturing units registered in


Out Of 316 Units;

90%-------------local pharmaceutical units.
10%-------------multinational owned.

Local Units-----------------------386
Multinational Units------------30

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vs pakistan
Importance Of Pharmaceutical Industry

˜ Produces medicines and life saving drugs

˜ Contributes towards GDP (0.16%)

˜ Generates employment (70,000 directly and 150,000


˜ Supports Health facilities

#&' Global
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6hy we chose this industry : It͛s a secondary industry and
difficult to set up than the rest

Difficult to

Difficult to



Historical Background

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$4 18 3,777

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5&' 3.05 6,631
5&" $ 3 320

Historical Background

˜ At the time of independence there were two small units

which were unable to meet the local demand.

˜ The rest of the medicines were imported.

˜ The decision taken in 1972 to abolish brand names, restrict

availability of essential drugs to 850, fix maximum retail prices
across the board and freely allow local manufacturer of all the
essential drugs was in fact a life line for the national segment
of the industry.

˜ Due to several reasons, especially inaccessibility of new

researched medications this policy was ultimately reversed in

Historical background

˜ Since 1999 the government has invested US$ 133 million in

the pharmaceutical industry.

˜ The last 10 years have been eventful for Pakistan

pharmaceutical industry as they have developed a large
number of domestic manufacturers.

˜ In 2006 there were over 400 licensed pharmaceutical

companies in Pakistan, including 30 multinationals who had
over 53 percent of market share.

˜ Today, the industry has developed technology, production and

an infrastructure of imports. It's a well regulated industry. It
has Domestic companies which are quite confident of doing
good business.



Role of Government

˜ The government has set up an independent Drug Registration and Pricing

Authority. In Pakistan the Ministry of Industries decides about the drug

˜ 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.

FACT : Healthcare spending in Pakistan In 2009 is

Role of
PKR226.5bn Government
Role of Government

˜ 6hile 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
/ 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
/ 6omen's Health Program.

FACT : only 0.7% of the GDP has been allocated for the health
Role of
sector in 2009  &!77'$ " '-'%  7 '8%"7%2%%' "'29'2% 22$ "'2"2&" 2 Government
Role of Government

˜ The public sector health development expenditure increased

from PKR 4.3 billion in 2003-04 to Rs.6 billion in 2004-2005,
and Rs.9.5 billion in 2005-06.

˜ 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

 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.

Role of



Impact of 6TO (from 2005)
˜ Patents
To comply with 6TO standards the product should be

˜ Prices
Increased competition lowers the price which would result
in low profitability for local manufactures.

Due to product patents rights new drugs could be

unavailable or unaffordable.

˜ Competition
6hen 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 6TO
˜ 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.

˜ TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement

The TRIPS agreement will push Pakistani companies out of
the competition in the new high value generating products.
6here Pakistani industry which is a generic manufacturing
industry would not be able to bring generic copies of new
products for at least ten years.




 | Nearly 95% ( Approx $ 450 million) of the basic

raw material used for manufacturing is imported from CURRENT
countries like China, India, Japan, UK, Germany and others. SITUATION
Health Policy 2010
Ministry Of Health And Government
Monday, March 22, 2010
Sania Nishtar

˜ The Ministry of Health along with Government of Pakistan is

working on w w for planned enhancements in
overall health sector by the way of promoting and upgrading
healthcare facilities at all tiers.

˜ Main Features Of The policy are;

1. to improve effective access to healthcare

2. Reduction in communicable diseases
3. Good governance at both directorate and agency level



2010 problems
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˜ rupee has depreciated against the US dollar

˜ GDP projections have been downgraded,
˜ inflation has increased and
˜ fiscal expenditure has contracted. volatile political and security
˜ low per-capita spend on pharmaceuticals
˜ year compound annual growth rate of 8.95%, down from 9.39% forecast
in the previous quarter
˜ Pakistan's ambition to become a significant exporter of pharmaceuticals
came under threat in September 2009, after a Ugandan drugmaker
sued a Pakistani pharmaceutical manufacturer for supplying
substandard goods

2010 scenario
  !|" |#$ "%% &' ())*+*

˜ Both generic drugs and patented products are subject to

price controls. The maximum retail price (MRP) of a
medicine is determined using a formula that incorporates
manufacturing costs and retail markups. 6hen pricing
imported medicines, the cost of freight is also included

2010 scenario


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˜ health insurance scheme similar to India's insurance

scheme for the poor.

˜ attract foreign patients to the country, encourage the

private sector to administer advanced treatments

˜ healthcare in Pakistan will drive the overall tourism market,

resulting in increased national wealth

˜ November 2009, when the Aga Khan Agency for

Microfinance (AKAM) established a healthcare insurance
service in Pakistan. The First "'"$ Agency



˜ After implementation of 6TO regime since Jan 1 st 2005, The
6TO regime may fortify the monopolies of MNCs and make the
access of medicines difficult to the poor patients;

˜ governments can tackle such problems by using compulsory

licensing and parallel import.

˜ Industry needs strong point of ͞low priced medicines͟ and on the

other hand it could draw more technology, research &
development and foreign direct investment by providing
better protection to the patents.

˜ Industry should go for unusual options such as foreign joint

ventures, contract manufacturing and approach towards
acquisition of compulsory licensing of patented
Recommendations (INTERNAL)
Dr Sara Hussain fron Agha kahn

˜ Existing evidence indicates a need to equip physicians-in-

training to handle interactions with the industry.

˜ The need to introduce early and ongoing trainings in ethical

concepts, moral reasoning and development of skills
necessary to address these issues.

˜ Registering and regulating authorities in Pakistan have must

ensure inclusion of the existing Code of Ethics in
undergraduate and postgraduate curricula and should
regulate industry collaboration with teaching institutes;
developments that are necessary to raise the standard of
clinical practice and improve patient welfare.