SECTOR STUDY-Pharmaceutical APRIL 2020 Kanwal - 1589554722
SECTOR STUDY-Pharmaceutical APRIL 2020 Kanwal - 1589554722
SECTOR STUDY-Pharmaceutical APRIL 2020 Kanwal - 1589554722
Generics 88 92 96 100
▪ Multiple efforts are underway to develop a vaccine to augment immune system against this virus.
The patients are being treated with available medicines, suited otherwise for various human
ailments.
Total revenue
PKR – 423 Billion
Revenue Concentration
There are around 9,000 actively marketed drugs in Pakistan sold at licensed
pharmacies on prescription. In addition, there is a large segment of Over the
Counter (OTC) products e.g., multivitamins, pain, cold and flu relief.
69%
National Listing
Name of Pharma Company Ranking
/ MNC Status MNC National
GlaxoSmithKline Pakistan Limited 1 MNC Listed
Market Composition | No. of
Gets Pharma (Privtae) Limited 2 National Unlisted Companies
Sami Pharmaceutical (Private) Limited 3 National Unlisted 3%
Product
Units FY14 FY15 FY16 FY17 FY18 FY19*
Category
Tablets 000 Nos 25,363,352 26,535,885 23,238,358 29,014,742 27,802,617 27,899,018
Syrups 000 Ltrs 91,139 98,996 108,342 117,084 112,637 104,916
Capsules 000 Nos 2,644,465 3,098,139 3,398,609 3,497,716 5,149,828 3,397,565
Injections 000 Nos 783,611 885,732 999,207 1,212,658 1,622,228 1,205,529
Ointments 000 Kgs 2,575 2,788 3,106 3,970 3,786 3,312
Galenicals 000 Ltrs 64 75 46 343 371 44
Source: Pakistan Bureau of Statistics
FINANCIAL PERFORMANCE OF MAJOR
INDUSTRY PLAYERS
Gross Margins 2013 2014 2015 2016 2017 2018 2019
Glaxo 25% 26% 27% 27% 26% 25% 20%
Abbott 38% 38% 39% 40% 39% 33% 28%
Searle 45% 45% 49% 52% 53% 51% 48%
Sanofi 30% 25% 26% 34% 36% 30% 25%
Highnoon 41% 45% 48% 47% 48% 47% 46%
Ferozsons 48% 48% 45% 41% 38% 32% 35%
Industry Average 38% 38% 39% 40% 40% 36% 34%
AGP 58% 58% 58% 58% 61% 56% 58%
Pharma Industry operates in a heavily regulated environment, monitored and administered by Drug Regulatory Authority of
Pakistan (DRAP). New molecules can take up to 12-18 months to register and generics take up to 3 years. It is a very sensitive field
that requires a lot of time for new product launches. Pricing matters have seen attention through a revised pricing policy.
Due to concentrated nature of the industry, the leading players are financially and business wise are much resilient. Internal capital
generation is good. Given the sustainability of demand side, owing to the customer’s needs, business risk is considered low and in
crisis period, it takes further support especially for large business houses.
Covid-19 has harnessed the integration of the pharmaceutical sector to the sustenance of the society at large. The industry and
especially the rightly placed institutions are taking advantage of branding and extra revenue streams. The temporary suspension of
outdoor medical facilities including private clinics is a challenge, though.
The future is expected to be carved around health matrix. Fundamental changes are expected in how governments have approached
health infrastructure and well being of the citizens.
Although Pharma companies are contributing 1% of their PBT to government for conducting R&D, a lot can be desired on the
front of research and development.