Collaboration Essential for Pakistan's Pharma Industry Growth: Dr. Mehmood Khan

The pharmaceutical industry in Pakistan is at a crucial juncture, facing both challenges and opportunities. As the backbone of the healthcare sector, this industry has made remarkable strides, with local companies now holding a significant 70% share of the market. However, to truly harness its potential, experts believe that collaboration and innovation are essential.

Dr. Mehmood Khan, the CEO of Hevolution Foundation, recently addressed these pressing issues at the 7th Pakistan Pharma Summit and PESA Awards 2024. He pointed out that while the industry has progressed, it still requires a shift towards greater collaboration among the approximately 250 pharmaceutical companies operating in the country. "Consolidation is needed in Pakistan’s pharmaceutical industry. Two companies dominate the UK, four in the US, and as many in Europe. It has been realised around the world," he stated. This highlights a critical point: without collaboration, companies in Pakistan may struggle to gain leverage, both with the government and on the international stage.

Dr. Khan further elaborated on the challenges posed by limited scale, stating, "Pakistan cannot compete on price due to its limited scale. Competing in price has diminishing returns. All generic manufacturers have disappeared in Europe." This observation underscores the need for Pakistani companies to innovate rather than compete solely on price, which is becoming increasingly unsustainable.

Despite these challenges, Dr. Khan expressed optimism about the potential of Pakistan's talented workforce. He emphasized the importance of retaining this talent, suggesting that the public sector should facilitate the private sector's growth. He drew a comparison with the United States, where the public sector actively supports private enterprises through substantial funding for research and development. This model has proven successful in fostering innovation and growth.

The COVID-19 pandemic has acted as a catalyst for change, accelerating the need for adaptation within the pharmaceutical sector. Dr. Khan believes that Pakistan's industry is at an inflection point, with a growing customer base, particularly among the elderly, and the emergence of new technologies. These factors present vast opportunities for growth and development.

The future of Pakistan's pharmaceutical industry hinges on collaboration and innovation. By working together and leveraging their collective strengths, companies can overcome challenges and seize opportunities in a rapidly evolving global market. As the industry leaders and experts gathered at the summit discussed, the path forward is clear: collaboration is not just beneficial; it is essential for the sustainable growth of Pakistan's pharmaceutical landscape.