5 pharma firms left Pakistan after deregulation of prices: PYPA

Five multinational pharmaceutical companies have left Pakistan since the government lifted mandatory price controls on medicines about two years ago, according to representatives of the Pakistan Young Pharmacist Association (PYPA) and other stakeholders who spoke at a news conference in Islamabad on Monday.

The group said the exits had contributed to an estimated $5 billion loss to the economy. They also argued that Pakistan’s pharmaceutical sector remains heavily dependent on imported raw materials, with a large share reportedly coming from India.

PYPA President Dr Hina Shaukat said some companies had shifted production over time and raised concerns about the state of medical-device safety. She cited Becton, Dickinson and Company, saying its manufacturing unit in Gujranwala had closed and that its products were now being sold through another company. She also warned about the risk of disease transmission through substandard, unsterilised syringes and medical devices, and said the Drug Regulatory Authority of Pakistan does not have a testing facility for medical devices.

PYPA Chairman Mohammad Usman Hundal said the price gap between medicines bought by the Punjab government and those sold in the open market was extremely wide. He pointed to several examples, including omeprazole, montelukast, escitalopram, pregabalin, atorvastatin and other drugs, saying the public-sector purchase price was far lower than retail rates for branded versions in pharmacies.

He said the Drug Regulatory Authority of Pakistan’s control over medicine prices was removed by the caretaker federal cabinet on February 6, 2024, and urged authorities to restore regulation. Hundal also said companies including Lundbeck, Novartis and Pfizer had left Pakistan.

Speaking at the same event, Advocate High Court Liaquat John said pharmaceutical companies were profit-driven and should not be expected to cut earnings voluntarily. He warned that if medicine prices rose sharply, it would become difficult for the government to continue providing free medicines in public hospitals.

Auditor Lahore Bar Association Rahila Hafeez Rana and Advocate High Court Sara Mumtaz also addressed the gathering.

When contacted by Dawn, Drug Regulatory Authority of Pakistan CEO Dr Obaidullah Malik disputed the claim that multinational companies had left because of government policy or regulatory decisions. He said some firms had entered joint ventures and could not continue as before, while others had chosen to exit the region and focus on Europe and other markets. On the price differences between government procurement and retail sales, he said many companies supply medicines to government hospitals at breakeven or lower prices so their products become more widely accepted among doctors and patients.

The report is based on a monitored public feed and published by Dawn Pakistan. Source: Dawn Pakistan - https://www.dawn.com/news/2017121/5-pharma-firms-left-pakistan-after-deregulation-of-prices-pypa