How can Pakistan grow its Pharmaceutical Exports?

[FuturePAF]

Today Trump is opening up the US to more importation of Pharmaceuticals. With India looking to move away from Chinese active ingredients and China may start to experience more trade problems with the US, could Pakistan have an opening?

If Pakistan starts to import Chinese raw materials, or better yet produces raw materials in CPEC SEZs, and finds a way to become a conduit for Mid-East Oil to China; road or rail or pipelines (paid for in Oil), it could turn that around into a robust petrochemical industry and a decent Pharmaceutical industry. Prices could be kept competitive with these two crucial factors in effect.

 

[Nilgiri]

But you need to put in the research work and sound sustained corporate development strategy to do it...to grow the needed infra over 10+ years.

It is not matter of just sourcing API and turning it into some stuff by throwing some investment around in short span of time like a switch on and off button.

Pakistan patent filing at USPTO is very telling for example....it is very low...barely a few dozen a year (and only some are pharma related I would imagine)....about a dozen or two a year get granted. Compare to the thousands that IND and CHN do (filed and granted) in just pharma.

It means you did not put enough people over the years of time needed to do the reverse engineering needed for generic drugs....and then have the right people grow the scale and employ more and invest more to grow and progress the sector.

It's the basic model for what you need to do in large enough amount to file and meet for quality control and import regulations in the largest markets like US and EU for patent-expired generics. Getting in now is tougher (esp with same status quo bureaucrats and forces) as what is the particular Pakistan USP for the supply chain?...since it didn't build up the raw bulk when the time was good for it?

@SQ8 @Jungibaaz @niaz @farhan_9909 @jaibi @PanzerKiel

 

[HalfMoon]

Today Trump is opening up the US to more importation of Pharmaceuticals. With India looking to move away from Chinese active ingredients and China may start to experience more trade problems with the US, could Pakistan have an opening?

If Pakistan starts to import Chinese raw materials, or better yet produces raw materials in CPEC SEZs, and finds a way to become a conduit for Mid-East Oil to China; road or rail or pipelines (paid for in Oil), it could turn that around into a robust petrochemical industry and a decent Pharmaceutical industry. Prices could be kept competitive with these two crucial factors in effect.

The best way is to buy APIs from China and sell them to India via UAE.

 

[Peshwa]

The best way is to buy APIs from China and sell them to India via UAE.

right!
Because UAE is a big supplier of pharma products to India? Or is it because the Pakistani pharma industry is that mature to manufacture and export?
Either reason will fit the profile of an amateur comment.

 

[HalfMoon]

right!
Because UAE is a big supplier of pharma products to India? Or is it because the Pakistani pharma industry is that mature to manufacture and export?
Either reason will fit the profile of an amateur comment.

No. Because Indians are incapable for making APIs themselves but their higher than Himalayas pride will now prevent buying them directly from China.

 

[Peshwa]

But you need to put in the research work and sound sustained corporate development strategy to do it...to grow the needed infra over 10+ years.

It is not matter of just sourcing API and turning it into some stuff by throwing some investment around in short span of time like a switch on and off button.

Pakistan patent filing at USPTO is very telling for example....it is very low...barely a few dozen a year (and only some are pharma related I would imagine)....about a dozen or two a year get granted. Compare to the thousands that IND and CHN do (filed and granted) in just pharma.

It means you did not put enough people over the years of time needed to do the reverse engineering needed for generic drugs....and then have the right people grow the scale and employ more and invest more to grow and progress the sector.

It's the basic model for what you need to do in large enough amount to file and meet for quality control and import regulations in the largest markets like US and EU for patent-expired generics. Getting in now is tougher (esp with same status quo bureaucrats and forces) as what is the particular Pakistan USP for the supply chain?...since it didn't build up the raw bulk when the time was good for it?

@SQ8 @Jungibaaz @niaz @farhan_9909 @jaibi @PanzerKiel

If only filing an NDA, ANDA or USDMF was that easy. The regulatory process itself is half the barrier to entry.
Not even going to mention the cost and time of developing a single ANDA (forget NDA), or the rigorous steps needed to maintain an FDA approved unit. Add to that the GADUFA fees.
If it was that easy, everyone would be doing it.

 

[FuturePAF]

But you need to put in the research work and sound sustained corporate development strategy to do it...to grow the needed infra over 10+ years.

It is not matter of just sourcing API and turning it into some stuff by throwing some investment around in short span of time like a switch on and off button.

Pakistan patent filing at USPTO is very telling for example....it is very low...barely a few dozen a year (and only some are pharma related I would imagine)....about a dozen or two a year get granted. Compare to the thousands that IND and CHN do (filed and granted) in just pharma.

It means you did not put enough people over the years of time needed to do the reverse engineering needed for generic drugs....and then have the right people grow the scale and employ more and invest more to grow and progress the sector.

It's the basic model for what you need to do in large enough amount to file and meet for quality control and import regulations in the largest markets like US and EU for patent-expired generics. Getting in now is tougher (esp with same status quo bureaucrats and forces) as what is the particular Pakistan USP for the supply chain?...since it didn't build up the raw bulk when the time was good for it?

@SQ8 @Jungibaaz @niaz @farhan_9909 @jaibi @PanzerKiel

Thanks for the though answer. While it is a long process, Pakistan has to look for growth industries, where it can put money into, and out of unsustainable companies like PIA.

Having access to cheaper raw materials could be enough of an incentive needed to attract FDI and foreign pharmaceutical companies to set up shop, especially if they have the experience of going through the ANDA process of getting generic medications approved. Getting through regulations is always the toughest And longest part of doing business in the US.

If Pakistan is to try to grow exports to the US from a $3.6 Billion, by an order of magnitude to tens of billions it needs industries it can get into.

Pharmaceuticals, value added organic food products, and higher end textiles maybe the way to go, but only if we invest in moving up the value added chain and increase our capacity to export when the opportunities become available, such as today’s news about importing more Pharmaceuticals from outside the US.

 

[Peshwa]

No. Because Indians are incapable for making APIs themselves but their higher than Himalayas pride will now prevent buying them directly from China.

hahahaha pardon?
You must be joking right?
China makes api for non regulated markets.
India makes api for regulated markets.
Surely you know that a country that supplies the most generic finished dose formulations to the regulated world has the capability and more to make any API.

We don’t need to make api for India as China makes it cheaper. Has nothing to do with capability and everything to do with the economics of manufacturing for a market.
But given the demand and need of the hour, those same west facing companies can very easily supply the indian market needs.

 

[Ahmad Bhutta]

R&D investments which we have closed to none

 

[Nilgiri]

Thanks for the though answer. While it is a long process, Pakistan has to look for growth industries, where it can put money into, and out of unsustainable companies like PIA.

Having access to cheaper raw materials could be enough of an incentive needed to attract FDI and foreign pharmaceutical companies to set up shop, especially if they have the experience of going through the ANDA process of getting generic medications approved. Getting through regulations is always the toughest And longest part of doing business in the US.

If Pakistan is to try to grow exports to the US from a $3.6 Billion, by an order of magnitude to tens of billions it needs industries it can get into.

Pharmaceuticals, value added organic food products, and higher end textiles maybe the way to go, but only if we invest in moving up the value added chain and increase our capacity to export when the opportunities become available, such as today’s news about importing more Pharmaceuticals from outside the US.

Yes this is why it needs a core set of competent bureaucrats in federal level and also provincial and local level that are good judge of priorities, delegate well and then judge results and allocate more delegation based on that...and dont mess things up for personal drama, political drama or sheer thuggish corruption etc.

Where this is allowed to happen, you will see correlation of development...be it industry or anything.

Where this is not allowed to happen, you see similar correlation of stagnancy, missed opportunity and even contraction.

It is same basic root dynamic all over the region. It must ultimately be harnessing of sound idea of sound delegation+meritocracy in inner working by either all major political/drama factions together or completely outside of politics/drama altogether. For South Asia I always increasingly suggest the latter....because our politicians and political parties are special breed of degenerate thugs and mobs in general...and are addicted to myriad of wedge issue creation for clawing at a better power and promotion of their mob base's ideology.

Without this....it just becomes typical unending noise and waste generation for political "promise" purpose....because politicians natural calling (esp once the system of corridors/channels of power are secured and hardened) is one of snake-oil merchant....i.e sell some new-fangled idea of change to come, rather than actually seeing things through and achieving it.

The few well meaning politicians and other power holders of note that do arise and have some sway....have to thus figure out best way to create apolitical systems and institutional craft outside of this and persist and commit to it, because without that it largely becomes self-feeding cycle with no real end....and thus no real breakout.

You must be joking right?

Honestly, its best to not litter thread more than need be by replying much to a prolific litterer. You are just kicking the litter around....best let him drop it around himself only. His whole purpose in this forum is increasingly obvious to anyone with basic sense.

 

[Thorough Pro]

Pharma patents are for 5 years only. We need to invest a bit in research, mass manufacture the in-demand, patent-expired medicines under generic brand and first sell them at affordable prices in Pakistan and then export to third world countries.

Today Trump is opening up the US to more importation of Pharmaceuticals. With India looking to move away from Chinese active ingredients and China may start to experience more trade problems with the US, could Pakistan have an opening?

If Pakistan starts to import Chinese raw materials, or better yet produces raw materials in CPEC SEZs, and finds a way to become a conduit for Mid-East Oil to China; road or rail or pipelines (paid for in Oil), it could turn that around into a robust petrochemical industry and a decent Pharmaceutical industry. Prices could be kept competitive with these two crucial factors in effect.

 

[FuturePAF]

Yes this is why it needs a core set of competent bureaucrats in federal level and also provincial and local level that are good judge of priorities, delegate well and then judge results and allocate more delegation based on that...and dont mess things up for personal drama, political drama or sheer thuggish corruption etc.

Where this is allowed to happen, you will see correlation of development...be it industry or anything.

Where this is not allowed to happen, you see similar correlation of stagnancy, missed opportunity and even contraction.

It is same basic root dynamic all over the region. It must ultimately be harnessing of sound idea of sound delegation+meritocracy in inner working by either all major political/drama factions together or completely outside of politics/drama altogether. For South Asia I always increasingly suggest the latter....because our politicians and political parties are special breed of degenerate thugs and mobs in general...and are addicted to myriad of wedge issue creation for clawing at a better power and promotion of their mob base's ideology.

Without this....it just becomes typical unending noise and waste generation for political "promise" purpose....because politicians natural calling (esp once the system of corridors/channels of power are secured and hardened) is one of snake-oil merchant....i.e sell some new-fangled idea of change to come, rather than actually seeing things through and achieving it.

The few well meaning politicians and other power holders of note that do arise and have some sway....have to thus figure out best way to create apolitical systems and institutional craft outside of this and persist and commit to it, because without that it largely becomes self-feeding cycle with no real end....and thus no real breakout.



Honestly, its best to not litter thread more than need be by replying much to a prolific litterer. You are just kicking the litter around....best let him drop it around himself only. His whole purpose in this forum is increasingly obvious to anyone with basic sense.

Hence the need to set up these businesses in the SEZ. Well resources and staffed, they would operate away from interference from petty politicians and would be managed as other SEZ around the world. The example these companies set in the SEZ could then be implemented into to local companies, if they wish to reform and prosper. The SEZ could then be vessels of attracting FDI from overseas Pakistanis and out of the real estate market, where money in put into land and left there.

The SEZ would employ many, transfer the needed skills to workers and management, and incentivize the political parties to campaign on economic issues and improving quality of life over other issues.

 

[Nilgiri]

Hence the need to set up these businesses in the SEZ. Well resources and staffed, they would operate away from interference from petty politicians and would be managed as other SEZ around the world. The example these companies set in the SEZ could then be implemented into to local companies, if they wish to reform and prosper. The SEZ could then be vessels of attracting FDI from overseas Pakistanis and out of the real estate market, where money in put into land and left there.

The SEZ would employ many, transfer the needed skills to workers and management, and incentivize the political parties to campaign on economic issues and improving quality of life over other issues.

Well SEZ concept is not new....its actually about 40 years old now.

Again it rests on the crucial implementation, the real important end-tier stuff.

Like I can write at some length in qualititative difference in handling of interested investment parties that went to both China and India in the 2000s for example, and simply picked China because of the core competency and organisation in handling things....because someone with enough care and competency delegated the right people for that stuff....or more recent examples of even Indian companies expanding production in China etc...because again there is a whole culture of free market + ease of business + delivery of quality labour and no-nonsense attitude given by the bureaucrats to minute detail even...at the crucial mid and low tier of operation of such companies and the govt/legal framework at large.

I can compare within India too, which states did a lot better than other states....both having SEZs, both starting with same level of stuff...but its the going on within that concept/brochure ....which ultimately matters in the end to them actually developing the scale and persistence and continually working outwards from that.

 

[FuturePAF]

Well SEZ concept is not new....its actually about 40 years old now.

Again it rests on the crucial implementation, the real important end-tier stuff.

Like I can write at some length in qualititative difference in handling of interested investment parties that went to both China and India in the 2000s for example, and simply picked China because of the core competency and organisation in handling things....because someone with enough care and competency delegated the right people for that stuff....or more recent examples of even Indian companies expanding production in China etc...because again there is a whole culture of free market + ease of business + delivery of quality labour and no-nonsense attitude given by the bureaucrats to minute detail even...at the crucial mid and low tier of operation of such companies and the govt/legal framework at large.

I can compare within India too, which states did a lot better than other states....both having SEZs, both starting with same level of stuff...but its the going on within that concept/brochure ....which ultimately matters in the end to them actually developing the scale and persistence and continually working outwards from that.

You’re right. Implementation of global business standards and enforcing that implementation is what makes the difference between where foreigners are willing to invest their money. Having said that, we have to start somewhere, and working inside a CPEC SEZ, away from the politicians and local companies, it may be possible to attract the right kind of managers and talent to put together startup companies that can grow into global brands.

Haier was one such brand in China. In this global downturn, a decently successful company can build up enough of a reputation to go out and buy an underperforming but otherwise solid foreign company for pennies on the dollar and transfer the knowledge base to become a global brand. One such company in Pharmaceuticals, another few in key sectors of agriculture, and a few others in fashion and value added textiles, and a country like Pakistan can revamp its economy in a decade of hard work and focus.

 

[Nilgiri]

You’re right. Implementation of global business standards and enforcing that implementation is what makes the difference between where foreigners are willing to invest their money. Having said that, we have to start somewhere, and working inside a CPEC SEZ, away from the politicians and local companies, it may be possible to attract the right kind of managers and talent to put together startup companies that can grow into global brands.

Haier was one such brand in China. In this global downturn, a decently successful company can build up enough of a reputation to go out and buy an underperforming but otherwise solid foreign company for pennies on the dollar and transfer the knowledge base to become a global brand. One such company in Pharmaceuticals, another few in key sectors of agriculture, and a few others in fashion and value added textiles, and a country like Pakistan can revamp its economy in a decade of hard work and focus.

Yah but what I'm saying is its already started:

https://invest.gov.pk/sez

So there need to be holding to fire of the feet, by those in position to do so...to best bring clear answers for what are the lessons so far and best practices so far etc and what not to do or whats not going well etc...and who the performers were in the system and who weren't....how to enable more of former, how to suppress or get rid of latter.

It has been 8 years so there must already be some body of stuff to learn from and take forward...and if there isn't it means something really needs fixing in the system handling it.