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President, Brookes Pharmaceutical Laboratories, Senator Abdul Haseeb Khan discussed the state of the pharmaceutical industry, its progress and the challenges it faces, in a recent exclusive interview with BR Research. The following transcript comprises select excerpts from the interview.
BR Research: Please brief us about the recent financial performance of Brooks Pharmaceuticals
Haseeb Khan (HK): We have experienced very steady growth of about 15-20 percent per annum not just in recent years, but ever since the establishment of this company about 25 years ago. Ethical practices, be they in terms of internal relations and practices or marketing or any other aspect of the business; are the hallmark of our performance.
We have about 183 products which are exported to 11 countries including Sri Lanka and some African countries. We are currently in the process of negotiations with about as many more countries and are hopeful that exports to these destinations will also commence soon.
We have always been extremely focused on research and development and the company's products are positioned in specialised areas. We are leading manufacturers of medicines for liver diseases, for jaundice and also for pain and inflammation.
There was a very brief period in the beginning when we relied on imports. However after the first two years, we have remained focused on local sourcing. We are proud of the fact that 100 percent of our products are produced locally.
BRR: What is the current state of the local industry and where do key opportunities lie?
HK: Central Asian and African countries hold a lot of potential for Pakistani pharmaceutical manufacturers. We are exporting to some of these countries but the market is huge and much of it remains to be tapped. These markets have the purchasing power and our products are well respected there.
Then there are areas where local companies have not ventured so far but should be explored. Take the case of vaccines; at present only multinational companies are manufacturing vaccines but local companies can also get into this area especially if they were to form joint ventures with Chinese counterparts that have the requisite technology and infrastructural capabilities.
Cancer medication is extremely expensive in Pakistan and many patients cannot afford these treatments. National vaccination programmes and drives do not have the attention of the government. It is a matter of shame for the pharmaceutical industry, the government as well as the media that the malaria vaccination programme was shut down last year.
Similarly, polio has been eradicated from even the least developed countries of the world but Pakistan is the only country in the world where the disease is actually resurging. These are the areas that need the attention of the government and pharmaceutical companies alike.
BRR: How has the devolution process affected this industry?
HK: A lot of uncertainty has increased in post-18th Amendment era and many businesses have been affected as the transition that was supposed to take place has been anything but smooth and seamless so far. While the federal government claims to have transferred many of its powers to the provinces, the provincial governments are adamant that they have not been allocated the necessary resources. In the meantime many of the federal ministries have been shut down while the Cabinet Division has been burdened with the responsibilities of these until the provinces can develop the capacity to provide the same services.
So there is no control or procedures. Who will register medicines, issue licenses and fix prices; nobody knows. These issues will persist even after the provinces develop the necessary capacity and resources because all over the world, these functions are performed by a central body. 102 countries of the world that are producing pharmaceuticals, all have such bodies in place.
Unfortunately, here in Pakistan we are still trying to decide whether public hospitals like Karachi's Jinnah hospital should be under the control of the provincial or the federal government. It is indeed a sorry state of affairs that even the chief minister of this province is silent over such matters when the ethical stance would have been to step forward, take responsibility for public hospitals and other healthcare related infrastructure to assure better provision of services to the people of this province.
BRR: Pakistan is in talks with India to liberalise trade between the two countries. How is this likely to impact the industry?
HK: The majority of the associations of local pharmaceutical manufacturers are against such a move. However I am in favour of opening trade with India simply because we are giving them a market of 180 million in return for which we are receiving a market of about 1.2 billion.
But the key issue here is that unlike the authorities here, the Indian authorities are very organised and well planned. So in order to actually reap bilateral benefits, the standards for the registration of goods and services should be similar on both sides of the border. Similarly, our exporters must receive the same level of facilities and support as the exporters on the other side of the border.
We have already had an eye-opening experience with Bangladesh where they have been given all sorts of concessions while our businesses still face a plethora of non-tariff barriers there. It is actually much easier, cheaper and less time consuming to register and sell medicines in China as compared to Bangladesh. Pakistan is still importing the major proportion of raw materials even though most of these could be made here. So the negotiation at the government level must be cognisant of the needs and interests of the nation and of local industries. Unfortunately, in my opinion there is no such initiative among legislators in the country.

Copyright Business Recorder, 2012

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