Pakistan Pharmaceutical Industry

Pakistan has a very vibrant and forward looking Pharma Industry. At the time of independence in
1947, there was hardly any pharma industry in the country. Today Pakistan has about 400
pharmaceutical manufacturing units including those operated by 25 multinationals present in the
country. The Pakistan Pharmaceutical Industry meets around 70% of the country's demand of
Finished Medicine. The domestic pharma market, in term of share market is almost evenly
divided between the Nationals and the Multinationals.

The National pharma industry has shown a progressive growth over the years, particularly over
the last one decade. The industry has invested substantially to upgrade itself in the last few years
and today the majority industry is following Good Manufacturing Practices (GMP), in
accordance with the domestic as well as international Guidance. Currently the industry has the
capacity to manufacture a variety of product ranging from simple pills to sophisticated Biotech,
Oncology and Value Added Generic compounds.

Although Pakistan 's pharmaceutical and healthcare sectors are expanding and evolving rapidly,
about half the population has no access to modern medicines. Clearly this presents an
opportunity, but much more work needs to be done by the government and industry's
stakeholders. The value of pharmaceuticals sold in 2007 exceeded US$1.4bn, which equates to
per capita consumption of less than US$ 10 per year and value of medicines sold is expected to
exceed US$2.3 B by 2012.

Pakistan is a developing pharmaceutical market, with a large population and economic progress
evident, but per capita drug spending was rather low at around US$9.30 in 2007. Private
spending accounts for 65% of total healthcare expenditure sourced through out-of pocket
payments, international aid and religious or charitable institutions. Pharmaceutical spending
accounts for less than 1% of the country's GDP, comparable to levels in some neighboring
countries but above that in some of the South Asian countries. The forecast period is likely to
witness the marginal strengthening of the generics sector, albeit more in terms of volumes than
values. The share of generics is also likely to increase further as major drugs come off-patent in
the near term, to the likely benefit of the generics-dominated local industry.

The Pakistan pharma industry is relatively young in the international markets with an export
turnover of over US$ 100 Million as of 2007. Pakistan Pharma Industry boasts of quality
producers and many units are approved by regulatory authorities all over the world. Like
domestic market the sales in international market have gone almost double during last five years.
The pharma industry is focusing to an Export Vision of USD 500 Million by 2013. In the
meantime, exports are also likely to be boosted by new regional and global opportunities.

The Pakistan Pharmaceutical Industry is a success story, providing high quality essential drugs at
affordable prices to Millions. Technologically, strong and self reliant National Pharmaceutical
Industry is not only playing a key role in promoting and sustaining development in the vital field
of medicine within the country, but is also well set to take on the international markets.

 
THE PHARMACEUTICAL MARKET: PAKISTAN - REVIEW

The recent flooding disaster in August 2010 has and will continue to have a detriment effect on
the macroenvironment. Excessive rainfall in Pakistan’s Indus river basin caused widespread
flooding, killing around 1,600 people and forcing 2 million people from their homes. The spread
of communicable diseases, especially water-borne ones such as diarrhoea and typhoid, and
hunger among survivors has resulted in more deaths in the aftermath of the disaster. This will
add to the woes of a country where poverty is rife and standards of living are defined by
substandard sanitation, malnutrition and an already widespread incidence of communicable
diseases exists. This has put particular strain on the Ministry of Health and the healthcare
services it provides, as the already weak system has become overwhelmed. The country is
largely dependent on foreign relief aid, in terms of both medical supplies and food & water, to
combat the effects of the flooding. Politically, this natural disaster could undermine President
Asif Ali Zardari’s weak coalition government, crucially at a time when co-operation with the
USA is paramount for the fight against the Taliban in the region. Economically, this will
severely affect the country’s GDP growth target, as it will cost billions of dollars to rehabilitate
victims and rebuild destroyed infrastructure

IPR continues to be a major concern amid patent issues and the prevalence of counterfeit drugs.
As a signatory to the TRIPS agreement, Pakistan had been given until 2004 to bring its patent
law in line with WTO requirements, but to date, intellectual property rights protection for
pharmaceuticals remains very weak. Pakistan remains on the US Trade Representative’s (USTR)
Priority Watch List in 2010. The USTR noted that there had been “various improvements with
respect to IPR protection in 2009, including the government’s recognition of IPR protection as a
key area in its economic reforms, and enhanced co-ordination of IPR enforcement efforts.
However, serious concerns remain about inadequate IPR protection and enforcement”. The
USTR stated that Pakistan needs to improve the protection against unfair commercial use of
pharmaceutical test data, and should establish an effective system to address the patent issues of
pharmaceutical products. Counterfeit drugs are also a major problem in the country. The
Pakistan Medical Association (PMA) alleged that nearly half of drugs available in the country
were counterfeit and that the population spent around three-quarters of their household health
budget on drugs in 2009, half of which may be fake or unfit for human consumption.

The pharmaceutical market is small and equally split between multinational and domestic
companies. Espicom projects the market to grow at a fairly high single digit CAGR in the
forecast period. By 2015, it will remain as one of the smallest pharmaceutical markets in the Asia
Pacific region in size terms, slightly smaller than Malaysia. The per capita expenditure is
projected to remain as one of the lowest rates in the Asia Pacific region and around double that
of Bangladesh. Imported retail medicaments account for around a fifth of the market, although
manufacturers rely heavily on imported raw materials for production. Pharmaceutical imports
increased over the 2004-2008 period, with retail medicaments accounting for nearly half of this
growth. There were over 400 pharmaceutical manufacturers registered with the Ministry of
Health in 2008, with multinational companies representing less than 10.0% of the total plants.
Multinational companies account for around half of the market by value, although local
producers have a far greater share in terms of volume. With the vast majority of domestic
manufacturing focused on the production of generics for the local market in addition to
significant pharmaceutical imports, the balance of pharmaceutical trade remains considerably
negative.

ENHANCED STRATEGIC INTELLIGENCE

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enhanced strategic intelligence in a user-friendly format. Each report provides in-depth
information, setting the pharmaceutical market in context. The reports provide:

 Five-year projections for economic, demographic, health expenditure, health workforce

and pharmaceutical market indicators.
 Specialised intelligence on OTCs, generics, biologics and biosimilars.
 Exclusive economic and demographic data from the Economist Intelligence Unit (EIU)
for each market in the series.
 A separate statistical health file, comprising health expenditure, health infrastructure,
health services and health personnel.
 The reports are updated quarterly, providing you with the latest information for a full
year. In addition, the service will keep you up to date with market and industry news on a
regular basis.

HEALTHCARE STATISTICS

A comprehensive tabula review, comprising demographics, epidemiology, health expenditure,

hospital and primary care infrastructure & services and healthcare personnel, is additionally
included.

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HIGHLY DETAILED REPORT CONTENT

EXECUTIVE SUMMARY
Including Espicom's at a glance strategic analysis and key data projections

MACROENVIRONMENT
Political, economic, legal and demographic analysis

EPIDEMIOLOGY
Disease burden and prevalence

HEALTHCARE
Organisation, expenditure, infrastructure, services and workforce

REGULATORY AFFAIRS
Regulatory developments and marketing registration/authorisation
PRICING & REIMBURSEMENT

DISTRIBUTION CHANNELS

MARKET ANALYSIS
Projections, product development, manufacturing and trade

COMPETITION
Trade associations, trade fairs, company intelligence and competitive strategies

OTC PHARMACEUTICALS

GENERIC PHARMACEUTICALS

BIOLOGICS & BIOSIMILARS

OPPORTUNITIES & CHALLENGES

Espicom's unique strategic analysis

DIRECTORY

METHODOLOGY & SOURCES

Pharmaceutical
 Market Analysis
 Company Analysis
 Product & Pipeline Analysis
 Fact Books & Strategic Reports
 News
 Drug Delivery
 Generic

Bosch:
The healing touch, it honors every individual rights to live without suffering & sickness. At BOSCH we
dedicate ourselves to medical advancement in recognition of the fact that there can be no greater world
than one free from disease.

BOSCH Pharmaceuticals is dedicated to enhancing human life through development, manufacture and
sale of quality pharmaceuticals products. The Company was established in 1994, with its main office and
manufacturing facility at Karachi, Pakistan. Now Progressing into 8th year of service, BOSCH thanks to
Doctors, Pharmacists and health care institutions who posed trust in the quality and efficacy of the
company's products.

Today, BOSCH is one of the fastest growing national pharmaceuticals companies, proud of the current
market share of its products. BOSCH products have unique advantages in health care system. The
company is continuously evaluating new prospects to add to the existing portfoloio.

High Quality Drugs for the Nation

BOSCH has an effective product range comprising of 40 brands with 100 resentations BOSCH
specializes in Antibiotics, Particularly Cephalosporins, which contributes to major sales. A broad
range of Quinolone group of Antibiotics, Semi-Synthetic Pencillin and Aminoglycosicles is
available. we also have Anti-Ulcerants, Anti-Rheumatices, Anti-Malerials, and good range of
Cardiac product are also included in our range