Pakistan Pharma Among World's Top 3 Fastest Growing

Pakistan pharmaceutical industry and market are among the world's top 3 fastest growing, according to IQVIA health market research firm based in the United States. Pakistan’s domestic pharmaceutical firms sales have grown 13.1% compounded annually in the last 4 years, outperforming multinational companies (MNCs), which saw global growth of 9.34% CAGR. Pakistan's pharma sector is growing faster than in other emerging markets like Bangladesh, Brazil, India, Russia and Vietnam.

Emerging faster than the MNCs, the quarterly revenues of the local Pakistani pharmaceutical companies surged to Rs. 320 billion in the quarter ending March 31, 2020, compared with Rs. 195.75 billion as of March 31, 2016. Similarly, MNCs increased their quarterly sales in Pakistan to Rs. 143.2 billion at the end of the first quarter of 2020, up from Rs. 100.2 billion in Q12016, according to Pakistani media reports. Pakistan exported $217.04 million worth of pharma products during 2019, according to the United Nations COMTRADE database on international trade.

Pakistan Pharma Growth Among Top Fastest in the World. Source: IQVIA

Medicine spending growth in the emerging pharmaceutical  ("pharmerging") markets continues to slow compared to the past five years and is projected to grow at 5–8% through 2023, according to US-based global market research firm IQVIA.

Pakistan Pharma Exports

Although China, Brazil and India have the largest medicine spending within the pharmerging markets, Turkey, Egypt and Pakistan are forecast to have the greatest growth between 2019 and 2023. Pharmerging market growth continues to derive primarily from increasing per capita use, but some markets are seeing wider uptake of newer medicines as patients’ ability to afford their share of costs improves with economic growth.

Pakistan's top 5 pharma companies, including GSK, Abbott, and AGP Pharma,  saw their profits jump 37% in Q1/2020 over the same period last year, to Rs2.6 billion. In the same quarter, profits of 13 consumer giants, including Nestle, Packages, Pakistan Tobacco and Colgate, remained flat amid COVID19 pandemic.

In growing recognition of Pakistan's pharmaceutical sector, the  US-based Gilead Sciences recently chose to license COVID19 drug Remdesivir to Pakistan's Ferozsons pharmaceutical company. Other Remdisivir licensees include pharma companies in India. Gilead said it signed non-exclusive licensing pacts with 5 generic drugmakers based in India and Pakistan, allowing them make and sell Remdesivir for 127 countries.

Related Links:

Haq's Musings

South Asia Investor Review

Vast Majority of Pakistanis Support Imran Khan's Handling of Covid1...

Pakistani-American Woman Featured in Netflix Documentary "Pandemic"

Coronavirus Lockdown, Lives and Livelihoods

Can Pakistan Effectively Respond to Coronavirus Outbreak? 

Pakistan's Computer Services Exports

Pakistan Mobile Phone Manufacturing

Pakistan's Aircraft Exports

How Grim is Pakistan's Social Sector Progress?

Major Tipping Point: Pakistan Middle Class Grows to 55% Of Population

Pakistan Fares Marginally Better Than India On Disease Burdens

Can Imran Khan Lead Pakistan to the Next Level?

Clean Energy Revolution in Pakistan

Democracy vs Dictatorship in Pakistan

Pakistan Child Health Indicators

Pakistan's Balance of Payments Crisis

Panama Leaks in Pakistan

Conspiracy Theories About Pakistan Elections"

PTI Triumphs Over Corrupt Dynastic Political Parties

Riaz Haq's Youtube Channel

Views: 60

Comment by Riaz Haq on July 5, 2020 at 11:18am

Pharmaceuticals in Pakistan presently form a USD 3.2 billion industry, growing at a swift 15%
annually. The sector has seen massive changes over the past decade, providing essential health
care products to citizens and introducing them to revolutionary pharmaceutical preparations.
Today, there are more than 700 pharmaceutical manufacturing units in Pakistan exporting
products worth over $200 million to more than 60 countries.

http://www.ppma.org.pk/wp-content/uploads/2017/09/Final-Report-Phar...

Comment by Riaz Haq on July 6, 2020 at 11:14am

#Pakistan Rolls Out First Locally Produced #Ventilators to Fight #COVID19 . #ImranKhan has inaugurated the production unit in Haripur #KPK with the capacity to manufacture 300 ventilators a month and handed over first batch to NDMA. #coronavirus https://www.voanews.com/south-central-asia/pakistan-rolls-out-first...

Pakistan has rolled out its first ever locally produced ventilators for deployment at hospitals treating coronavirus patients as the national tally of COVID-19 infections rises to nearly 232,000.

The pandemic has killed about 4,800 people since late February when it reached the South Asian nation of about 220 million; however, officials have reported a consistent decline in new infections and deaths from the infection over the past week.

Prime Minister Imran Khan Monday inaugurated the production unit and handed over the first batch of ‘SafeVent SP100’ portable ventilators to the national disaster management agency.

The facility in the northern town of Haripur has a production capacity of up to 300 ventilators a month.

An official statement quoted Khan as describing production as “a landmark achievement” for Pakistan, which has long been criticized for importing crucial medical supplies, including ventilators, despite having developed sophisticated nuclear weapons.

Pakistan’s public health care system has for decades suffered from neglect, lack of funding and corruption, which encouraged expensive hospitals in the private sector to flourish in a country where about 25 percent of the population live below the national poverty line.

Science and Technology Minister Fawad Chaudhry recently told parliament there were only 1,400 functioning ventilators in government hospitals across the country when the pandemic hit it, immediately leading to an acute shortage of the life-saving equipment for critical coronavirus patients.

Pakistan’s close ally China, however, swiftly stepped in and sent urgent relief supplies, including hundreds of ventilators, millions of masks and testing kits, worth more than $55 million, enabling Islamabad to deal with the unfolding health-related crisis.

The United States also has pledged millions of dollars in new aid for Pakistan to help combat the ailment. President Donald Trump’s administration has already donated 100 ventilators to Islamabad out of a promised 200 machines.

Chaudhry, while hailing the U.S. “gesture of friendship,” said in a statement that Pakistan, in a short span of four months, has now begun its own large-scale production of sanitizers and personal protection equipment, noting the medical supplies are already being exported to the United States.

"In the next three years, Pakistan will have its own big medical and electromagnetic industry and I have no doubts that USA will be our major client,” the minister pledged.

Chaudhry also said three new manufacturing facilities in the public and private sector are being installed for commercial production of ventilators. He noted that Pakistan annually imports medical supplies worth more than $2 billion and pays an additional $1 billon in service agreements to run the equipment.

The minister said domestic production of medical equipment will save Pakistan much-needed foreign exchange and the country will be self-sufficient in next five years so it will not have to import any medical supplies.

Comment by Riaz Haq on July 11, 2020 at 5:23pm

#CoronaVirus Protection Gear Sales Reversing #Pakistan #Exports Fall. Exports of #PPE, #masks and other protective gear -- a new market -- have increased, says Abdul Razak Dawood. New export orders for #garments coming in. #COVID19
https://www.bloombergquint.com/global-economics/virus-protection-ge... via @BloombergQuint

Pakistan has “really moved fast into that area,” Dawood said, referring to PPE. The current year should be a better one than last, he said. South Asia’s second-largest economy, whose exports dropped 7% in the year ended June, isn’t alone in stepping up production of PPEs. Neighbor India has become the world’s second-biggest maker of PPE kits after a shortage at the beginning of the outbreak pushed it to boost local manufacturing. Supply chain disruptions caused by the pandemic has meant Pakistan secured its first sportswear order from Hugo Boss AG, according to Ijaz Akhtar Khokhar, chief coordinator at Pakistan Readymade Garment Manufacturers and Exporters Association.

Pakistan plans to give tax incentives to any global brand that opens an office in the country, said trade adviser Dawood. The South Asian nation is looking to spur growth in the economy after its first contraction in 68 years in the year ended June. While exports dropped in seven out of the past 12 months, the rupee’s depreciation -- by more than 50% since late 2017 -- has made the nation’s shipments competitive globally, said Dawood. Dawlance, a local home appliances maker, exported microwaves to Bangladesh for the first time, while D.G. Khan Cement Ltd. has sent clinker to new markets such as China and Philippines. The cement maker has another order from the Philippines for supply of 20,000 tons as well as making more shipments to China, according to CFO Inayatullah Niazi.

Comment by Riaz Haq on July 18, 2020 at 7:43pm

Despite COVID-19 outburst, agri sector expands by 2.67pc

https://nation.com.pk/01-Jul-2020/despite-covid-19-outburst-agri-se...


Positive growth of 2.90 per cent in important crops was observed due to an increase in production of wheat, rice, and maize at 2.45 per cent, 2.89 per cent, and 6.01 per cent, respectively. Similarly, the increase has been witnessed in Fertilizer (5.81 per cent), Leather products (4.96 per cent), Rubber products (4.31 per cent), Paper & Board (4.23 per cent) and Non-metallic mineral products (1.82 per cent). Besides these sectors, the pharmaceuticals also remained functional during the pandemic and in fact registered growth.

The PES 2019-20 disclosed that the pace of contraction diminished in the pharmaceutical sector as it registered 5.38 per cent decline during July to March in FY-2020 as compared to 8.66 per cent decline in the corresponding period. Also, the pharmaceutical sector recorded the highest sales in March while it fetched $1.3 million Foreign Direct Investment in April 2020. Once the textile industry was leading exports of the country but now the pharmaceutical sector has been identified as the sector that could enhance the country’s exports to boost the country’s foreign exchange reserves. Pakistan’s pharmaceutical industry is an essential, high technology and a strategically important industry and at the present growth rate the market size for pharmaceuticals will double in the next 10 years in Pakistan.

----------------

But the impact of the pandemic will be severe in the coming months as the IMF has revised down its world GDP projections and now expects a contraction of 4.9 per cent in 2020. “Apart from the last three months, the next twelve months will also be very tough for the Pakistan economy,” said Taha Khan Javed, Head of Equities at Al Meezan Investment. The outlook for Pakistan GDP is also precarious with growth for next fiscal year expected to be only 1-2 per cent, much below the normal growth 3-5 per cent we have seen in the past, he added. He said that because of slowdown in economic activity especially in the informal sector it is expected that millions of people will be unemployed, while exports will also remain under pressure.

Yet, he added, few industries including the pharmaceuticals of the country can play a vital role in their capacity to help the national economy. While suggesting a way forward in this regard, Taha said that the pharmaceutical industry should ramp up their production capacity.

Comment

You need to be a member of PakAlumni Worldwide: The Global Social Network to add comments!

Join PakAlumni Worldwide: The Global Social Network

Pre-Paid Legal


Twitter Feed

    follow me on Twitter

    Sponsored Links

    South Asia Investor Review
    Investor Information Blog

    Haq's Musings
    Riaz Haq's Current Affairs Blog

    Please Bookmark This Page!




    Blog Posts

    ملک بھر میں ون ڈے پلانٹیشن ڈرائیو کا آج آغاز ہو گا

    ملک بھر میں آج ون ڈے پلانٹیشن ڈرائیو کا آغاز ہو گا۔



    تفصیلات ک متابق ملک بھر میں آج ایک دن میں 35 لاکھ پودے لگائے…

    Continue

    Posted by Sobia Anjum on August 8, 2020 at 11:27pm

    Intermittent rain turns Karachi roads, streets into canals

    Sindh News

    Intermittent rain hit Karachi on third straight day and turned many roads and streets into rivulets on Saturday. 

    The citizens are facing severe trouble due…

    Continue

    Posted by Sobia Anjum on August 8, 2020 at 1:45am

    © 2020   Created by Riaz Haq.   Powered by

    Badges  |  Report an Issue  |  Terms of Service