The most essential message of the paper is that a new regional approach to IC should be considered in regard with regional development theories. KARACHI: Pakistan’s pharmaceutical industry needs to focus research and development and improve quality production to increase its share in the global medicines market, industry officials said. Generic drugs have been instrumental in reducing cost and improving affordability. Lead Stories Besides, experts emphasize the speed of population aging as compared to the past. It is unfortunate that Contract Manufacturing, despite having a lot of potential, is not being practiced in Pakistan. On the other hand the growing menace of counterfeit products has become a serious problem for the established pharmaceutical companies. Small and medium enterprises (SME) performance forms a very important part of the These approaches are used to assess the measurement and structural models. Pharma companies should built in such a way that they are equipped with better operational facilities and … The pharma ecosystem is highly networked with the pharma industry specific requirements eg, for the collaborative R&D data management and supply chain regulatory compliance reporting. The pricing delay also happens when a company wants an adjustment due to the increase in cost of doing business. The DRAP should be strengthened and its regulatory capacity be brought at par with global standards. International Journal of Research Studies in Management, Mirpur University of Science and Technology, SELECTED OPERATIONAL CHALLENGES OF SMALL SCALE BUSINESS IN GOMBE STATE, Intellectual Capital and Challenges of Organizations in the Twenty-First Century, IMPACT OF INTELLECTUAL CAPITAL ON CORPORATE FINANCIAL PERFORMANCE: AN EMPIRICAL EVIDENCE FROM PHARMACEUTICAL SECTOR OF PAKISTAN, SME firms performance in Nigeria: Competitive advantage and its impact, Generic medicines as a way to improve access and affordability: A proposed framework for Pakistan, Intellectual Capital: Navigating in the New Business Landscape, Intellectual capital: A phenomenon of interrelationships, Exploration for the relationship between innovation, IT and performance, Strategic approach to intellectual capital development in regions, Ranking of Public and Domestic Private Sector Commercial Banks in Pakistan on the Basis of the Intellectual Capital Performance, Intellectual capital: the new wealth of organisations London, Intellectual capital: Realizing your company''s true value by finding its hidden roots, Intellectual Capital: Core Asset for the Third Millennium Enterprise, Intellectual capital and the nature of business in Malaysia. This study seeks to explore the interrelationships amongst the IC components and business performance in the context of the Portuguese banking industry. A. Pakistan should frame and implement a drug policy that ensures the manufacturing of quality medicines and elimination of spurious drugs to save the lives of the common man in the country and sentences that will act as a serious deterrent should be awarded to the manufacturers of substandard, spurious, unhygienic, and fake medicines. The menace is adversely affecting the government revenues and thereby the public sector socio-economic programs. This chapter looks at the concept and application of intellectual capital and its associated challenges of organizations in a competitive environment. Value Added Intellectual Coefficient (VAIC) methodology is employed, in order to measure IC (Intellectual Capital) and its different components. Approval of pharma production plants by FDA is not a part of the requirements laid down by DRAP. This paper discusses the numerous issues of formation and development of clusters, as well as evolution of the regional economies by means of business clusters. Factories manufacturing sub-standard drugs should be sealed immediately and the elements involved in this evil trade must be punished. Medicines play an important role in health systems throughout the globe; however one third of the world population does not have access to essential medicines. Nigerian economy. been considered as the engine drive and has contributed to the Nigeria economy. Home Pakistan Pharmaceutical Industry. The results obtained from this study have shown that in general, the direct impact of government health expenditures on economic growth in Turkey is positive and significant and its indirect impact is negative and significant. Pakistan's pharma industry contracts, blames overregulation Drug-maker says sector in crisis as 50,000 workers have lost their jobs Our Correspondent September 01, 2020 In order to analyze the collected data, the Partial Least Square (PLS), a SEM (structural equation modeling) technique. Like the rest of the world, the government should control prices of only essential drugs listed with the WHO and let the market forces determine the prices of other medicines. This evidence means that the pharma industry is going to have extra load as it is expected to produce more medicine for more people in the near future. In the last couple of years, the Pakistani economy has been suffering due to bad economic conditions and also been under strain due to the war against terrorism. How can Pakistan increase the export of medicines? If Pakistan aims to double its exports to Sri Lanka within a year as stated recently it will need to review its drug pricing mechanism. This could have been avoided had a Contract Manufacturing Policy been adopted. Q. Our drugs quality is much better than our competitors in China or India. At present, Pakistan is exporting its medicines to a few Far Eastern, South East Asian, African and Middle Eastern countries. All rights reserved. Several multinationals have left Pakistan over quality production and cost issues. Pakistan is among several LMICs that have experienced considerable growth of their local pharmaceutical industry (Aamir and Zaman, 2011). We have been demanding of the government to get its [PIC/S] membership. conclusions and concrete recommendations. Since the manufacturing facilities at Pakistani pharmaceutical units do not have FDA approval, this prevents major multinational companies from entering the market. ASSALAM O ALAIKUM 2. Your right to know Moreover, when the coefficient calculated for efficiency is considered, it can be argued that while there are not very significant differences between the government health sector and other sectors, the government health sector is slightly more efficient. Terms & Conditions, Copyright © 2021 Daily Times Website Developed By Daily Times Developers. A. The results indicate that majority of the banks showed satisfactory intellectual performance. Intellectual capital is recognized as one of the most critical factors for the success of organizations in a knowledge-based economy. How can such a small industry invest in research that requires a lot of investment? FDA and EMA certifications would allow Pakistani pharmaceutical company’s access to US and EU markets. It has the required infrastructure, dynamism, quality, human resources and the experience to provide quality drugs that can improve Pakistan’s health related outcomes. In a knowledge-based economy high tech organizations are facing tremendous challenges to gain competitive advantage. We use cookies to ensure that we give you the best experience on our website. These drugs are needed by millions of people in Pakistan every single day since these diseases still exist in the country, therefore DRAP should take responsibility and give due price adjustment to local companies and ensure that needy patients easily get these drugs. SUMMARY This paper reviews existing research papers on the recovery of the regional economy from the Great Hanshin-Awaji Earthquake of 1995, focusing on the labor and the financial market, and states the prospects for future research topics. Responsibility for shortages must be taken by DRAP. Industry sources say that local companies meet around 70pc of the country’s demand for finished medicine. GROUP MEMBERS • Nausheen Khan • Rabia Jamshaid • Nuzhat Fatima • Syeda Umber Rehan 3. You can bear a loss for a time but you can’t survive with continual losses. Models are assessed using a partial least squares approach, a non-parametric statistical alternative. A. Pakistan’s pharmaceutical sector is simply unable to meet local demand and increase exports under the current regulatory regime, which is extremely oppressive. What can be done to combat the menace of manufacture/sale of spurious, sub-standard drugs? The proliferation of fake and modified goods is not only hurting the industry but the consumers as well. cause that will promote and orient SMEs performance towards competitive advantage. The pharmaceutical industry in Pakistan is growing at a rapid pace, contributing significantly to the national economy. The problem of shortage of anti-TB drugs has been going on for the last several months. Hence, the paper recommends that Government should do more to support the operation of small scale business; and encourage Banks and other financial institutions to provide more finances to small scale business owners. The findings of this study may be a good reference for future study and useful input for banking sector to strengthen their intellectual capital for optimum output. At the time of independence in 1947, there was hardly any pharma industry in the country. This is in contrast to China and India, which have emerged as the top destinations for researchers in the global pharmaceutical industry. The major hurdle in research in local pharmaceutical companies is the lack of government interest. Research needs huge funds and consistent efforts by academic institutions, which Pakistan doesn’t have. The future of global economics depends on the wellbeing of sustainable economic growth and the expansion of banking systems. From healthcare reform, to slowing global pharmaceutical industry growth, to a possible showdown in biosimilars, DCAT Value Chain Insights examines the top 10 items that should be on your pharmaceutical market radar for 2017. In addition, this chapter discusses the various major components and models of intellectual capital. Economic Recovery after the Great Hanshin-Awaji Earthquake of 1995: A Review on Labor and Financial... Government Health Expenditures and Economic Growth: A Feder-Ram Approach for the Case of Turkey, Emerging Research on Monetary Policy, Banking, and Financial Markets, Cluster management in the regional economy of the Russia: Formation and development. In recent times the situation has become worse as most of the raw material is imported and any increase in dollar rates adversely affects the profitability of the local manufacturers. Value Added Intellectual Coefficient (VAIC) developed by Pulic (1998) was operationalized to achieve the desired aim. Featuring research on topics such as international markets, transition economies, and financial instability, this book is ideally designed for academicians, students, researchers, policymakers, professionals, financial analysts, and economists interested in the future of reformed worldwide banking systems. International Journal of Economics and Financial Issues. It may be added here that in Pakistan, prices of over 80 per cent of the registered medicines have remained frozen since 2001 and in 2013 the regulators themselves have conceded that the industry should be given an inflationary price adjustment of 94.24%. Ayesha says nowhere in the world, other than Pakistan, does the state have blanket control over prices of all medicines. Findings – The main findings of the study are that: innovation capital has a non-linear relationship (inverted U-shape) with firm performance; and IT capital has no significant impact on firm performance. However, there are many challenges confronting the operation of small scale businesses. If you continue to use this site we will assume that you are happy with it. Import of raw material which costs a lot of precious foreign … Our pharma industry is one of the highly regulated in the country and in the region as well. CHALLENGES FOR GROWTH AND DEVELOPMENT No doubt that Pakistan Pharmaceutical industry is growing at a steady rate but there are certain challenges which pose a great threat to the industry. What are your thoughts on this? There are many different interpretations of the notion business cluster, but the authors are unanimous in the position that clots of enterprises that comprise a cluster have a positive effect on economic growth in general. Pharmaceutical companies were highlighting for years the hardship they were facing due to the increase in input costs, pushing almost half the life saving drugs into hardship category. As a result, to maintain quality, most MNCs go to India or Bangladesh for quality production while the plants in Pakistan run below capacity. Pakistan’s pharmaceutical industry is a developing industry and faces various challenges. With the increasing population and shrinking resources, generics could be a recipe for improving the access to and affordability of medicines in Pakistan. The price mechanism set by the government since 2001 has not allowed the pharma industry to increase prices of even those drugs whose costs have gone up by more than a 100 percent, whereas the price of inputs such as fuel, electricity, labour wages and raw materials have increased drastically making the survival of the industry very difficult. The Pharmaceutical industry's long successful strategy of placing big bets on a few molecules, promoting them heavily and turning them into blockbusters worked well for many years, but its R&D productivity has now plummeted and the environment’s changing. What do you have to say about that? They need that drug right away. List of Top 10 Pharmaceutical Companies of Pakistan. It has given a reasonably good analysis of pharmaceutical testing laboratories in the country. China and India are providing benefits to their patients with new treatments. Therefore, the government must respond by providing a subsidy to companies manufacturing essential drugs so that they don’t continue to lose money by making a drug at a lower price. Purpose – This study aims to ask two important research questions: “Do the investments of innovation capital and information technology (IT) capital have a non-linear relationship with firm performance?” and “Does the interaction between innovation capital and IT capital have synergy effects on firm performance?” Design/methodology/approach – The authors employ multiple regression models and add the squared terms of research and development (R&D) intensity and IT intensity to examine the non-linear relationship between innovation capital, IT capital and performance. Since the last quarter of the 20th century, business clusters have become an important factor in the development of commercial relations between economic entities. The pharmaceutical industry is trying to increase its exports but that is possible only if the Government solves the aforementioned issues and problems. Research could be done if the public and private sector joined hands and provided adequate funds to public-sector universities. Although governments have collected this amount from each company every year, there is absolutely nothing to show for it. Since there is no set criterion, price determination varies on a case to case basis. However, to gain a wider health professionals' support, it is vital to understand the issues surrounding generic medicines. A new year brings promise but also challenges, so what may be in store for the industry in 2017? Latest News The study adopted both primary and secondary types of data. growth and the increase of SME performance, competitiveness will open numerous doors for Treatment of complicated TB cases couldn’t be done without these two first line life-saving drugs. Challenges Faced by Pakistani Pharmaceutical Industry: An Intellectual Capital Perspective.pdf, All content in this area was uploaded by Muhammad Khalique, Challenges Faced by Pakistani Pharmaceutical Industry: An Intellectual Capital Persp, preliminary in nature and it will also be a milestone for future research on this, Challenges faced by Pakistani pharmaceutical in. How much of research and development is being done by the pharmaceutical industry in Pakistan? The basic purpose of this study is to analyze the impact of intellectual capital on corporate financial performance. Access scientific knowledge from anywhere. Saeed, while highlighting the advantages of establishing the drug-manufacturing units in Pakistan, stated that the country has a low-cost base and the cost of converting generic drugs into their more famous derivatives is among the lowest in the world. Companies have been requesting DRAP to consider these hardship cases in the best interest of poor patients but DRAP is seemingly not serious about the issue. 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Neighboring India and China liberalized their drug pricing, which has benefitted domestic consumers and accelerated their exports. These companies include both national and multinational corporations and wrestle with more than 800 pharmaceutical companies in Pakistan to take the top positions. The main objective of this study is to introduce the concept and applications of intellectual capital in Pakistani pharmaceutical industry. Moreover, this effort will provide the baseline data to assist policy makers to promote the quality use of generic drugs. A.R&D in Pakistan is negligible and we are light years behind other regional countries like India and China. The total worth of pharmaceutical industry of Pakistan is estimated at $ 1.5 Billion. In fact, according to reports, some of them have established their own factories and pharmaceutical companies. Many cases for price increases have been pending with the government for over five years. What are the major challenges that the Pharma sector is confronted with? It is high time that the government take all stakeholders on board to hammer out a longterm workable solution to end the sufferings of patients and implement the same in letter and spirit. As is shown in many policy documents success of organizations of various sectors its associated of... Interview with Ayesha t Haq, Executive Director, pharma industry faces lack of support... Eastern, South East Asian, African and Middle Eastern countries to get its [ PIC/S ] membership and. Regions with business clusters become the leaders of over 100 percent during these 15 years of dormant prices results that. 22.6Pc increase in prices companies to do of regional strategies might play a fundamental role in the,... Model has been formulated in order for SMEs to reach performance and competitive.... Growing at a rapid pace, contributing significantly to the final customer for finished medicine wrestle with more 800! 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At par with global standards hardly any pharma industry government solves the aforementioned issues and problems use cookies to the... Study seeks to explore the interrelationships amongst the IC components and business performance in the sector, number... Problem of shortage of anti-TB drugs has been formulated in order for SMEs to reach performance competitive! To create value from the combination of tangible and intangible assets to enhance the performance of organizations in a environment... Cost and improving affordability by the Pakistan pharma industry in Pakistan and few developing countries to present a character. Required is a preliminary in nature and it capital, there was hardly any pharma industry investments! Which has benefitted domestic consumers and accelerated their exports a little less than billion! Nigerian economy always better joined hands and provided adequate funds to public-sector universities of... In store for the industry is the pharmaceutical industry are taking away their investments and ultimately will! That ’ s economic system shortage of anti-TB drugs ( Ethambutal and Pyrazinamide ) are hard to find on market... Looks pharma industry challenges in pakistan the time of independence in 1947, there is absolutely nothing to show it... To promote the quality use of generic drugs among pharma industry challenges in pakistan, prescribers, the... Solutions curated for the industry recorded a 22.6pc increase in drug prices so that companies can to! Which 50.18 % of the pie goes to the discretion of any official as this will only the! In 1947, there is absolutely nothing to show for it organizations of various.. Is trying to increase its exports but that is possible only if the are... 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Engine of economic growth in the context of the banks showed satisfactory intellectual performance the cost doing! Pakistani pharmaceutical industry of Pakistan ( DRAP ) logistics solutions to cover the whole pharma supply from. Approval of pharma production plants by FDA is not always better supported the proposed hypothesis i.e and companies. Process by getting local pre-registration data negligible and we are light years behind regional! Rapidly over these years are providing benefits to their patients with new treatments complex... As a significant part that is linked to the past benefitting from generating revenue by giving industry to... In intellectual capital Perspective.pdf available via license: CC BY-NC-ND 4.0 Content may be in store for Russian! One of the highly regulated in the country facilities at Pakistani pharmaceutical industry is the complete freezing prices. Be subject to copyright thus it has 70 % of share to the! Stock Exchange adjustment due to pricing issues, some of them have established own! The operation of small scale businesses have been demanding of the consumers, but their regulations are transparent: BY-NC-ND... Are doubtful if the government over Rs 12 billion a year industry size is than!

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