Case Reports: 2023 Vol: 29 Issue: 2S
Rimsha Shahzadi, Superior University
Attiqa Khaliq, Superior University
Citation Information: Shahzadi, R., Khaliq, A. (2023). Medisave Pharmaceutical in Regime: Issues and Prospects. Journal of the International Academy for Case Studies, 29(S2), 1-10.
This case study is based on the success story of Medisave pharmaceutical company which is well-known with the capacity of twenty-five thousand products in different categories of disease with annual sales return of 100 million rupees per month. There are 92 factories in production (as of April 2010) and an additional 102 are expected to join production by December 2010. Corruption and preferential treatment in government sectors have always laid down business in Pakistan, particularly in the pharmaceutical sector. Alike to all businesses when Medisave started, it suffered a lot of obstacles from authoritative offices. When it started incorporation costs were very serious and other requirements were high like there must be all setups above except even those as well which have no direct link with production. Medisave always believes in good corporate governance and control which fosters higher growth and development or the way round. Medisave always deem impersonal management and proper recruitment process and method which ensure the right people at the right place.
Human Resource Management, Pakistan Economic Survey, Gross National Revenue, Average Age.
It was in 2005, that Pakistan entered the pharmaceutical industry to provide high-quality pharmaceutical products (GMP)1 based on meeting the national and international standards of the drug market. It was accumulating the need for health to decrease diseases. It was a matter of enormous delight and privilege to broadcast that outline of dreams in 2005. It has been realized in Pakistan at Lahore in the form of a state-of-the-art pharmaceutical plant. Over those five years, I feel indebted to declare that our management contributed in all stages as talent, time, and treasure to ensure that this project is completed. We faced many issues during this period, but our efforts made this project highly successful. I would like to include here that my staff team is very hardworking and supportive at all levels, and they keep me confidential so I can rely on them due to my beliefs (Chairman Message).
Keeping in mind a mission, which is why Pakistan is flaunted in pharmacy products regardless of abundant natural resources and human abilities, the investor stepped into the business. Another thing that was distressing to the entrepreneur was, “Why can't we be the leading pharmacist” Miserably, we are just producing. 31 percent of the total production of pharmacy products. Although it was an infant production plant with a capacity of twenty-five thousand products (Annexure Table 1) in different categories of disease with an annual sales return of 100 million rupees per month.
|Annexure Table 1 Capacities of Production Annual Capacity Total Working Days 253 Single Shift 8 Hours|
|1.||General Tablets Manufacturing Area|
|Machine of Blister Packing (ALU-ALU)||60.0 Millions|
|2.||General Capsules Manufacturing Area|
|3.||Antibiotic Tablet Manufacturing Area|
|Tablet Compression||50.0 Millions|
|Blister Packing||150.0 Millions|
|4.||General Capsules Manufacturing Area|
|Dry Powder Suspension||1.2 Million bottles|
|5.||Liquid Manufacturing Area|
|Manufacturing||5.0 Lit lac.|
|Filling (4 nozzles)||2.5 Millions|
|Dry powder Suspension||1.35 Million bottles|
|7.||Ampoules Area (Liquid)|
|Infusion (SVP)||5.0 Lac vial|
Qureshi et al. (2014) Reduce the cost; reduce the cost, together to sustain its economic incentive the pharma companies need to make it essential for the pharm industry to use proficient, systematic approaches to drug discovery, formulation, design and developing responsible marketing strategies to attract customers out of saturated market. The growth of international pharmaceutical market is expected ($1,075.96 billion in 2021 to $1,136.22 billion in 2022) at a (CAGR) composite annually growth rate of 5.6%. The expectation of market to reach $1,635.127 billion in 2026 at a composite annually growth rate of 9.5%. According to IMS2 the health report shows the global production of drugs (medicines) market was approximately $1.48 trillion in year 2022, whereas the developing countries are expected to be major contributors of this growth. The strong expansion from developing countries as compare to developed countries drug market is due to occurrence of deprived health amenities, disease, and enormous population growth.
According to worldwide sale of pharmaceutical companies is $1.42 trillion and the share of Pakistan in global pharmaceutical drug market is $3.2 billion only in 2021. With the passage of time PPI has flourished. At this time there are 650 companies having legal drugs manufacturing licenses in which (30 MNC’s3 and local 620 are producing drugs in Pakistan. Top 30 companies which are contributing highly in Pakistani market are listed in (Annexure Table 2).
|Annexure Table 2 TOP 30 COMPANIES IN PAKISTANI MARKET|
|1. Abbott laboratories
7. High-q pharmaceutical
8. Searle Biosciences
9. Getz pharma
10. Ici Pakistan
12. Geo pharma
13. Feroz sons
18. Nabi Qasim
19. Jhon sons
24. B H
25. BM Squib
27. High noon
At the beginning Pakistan had to suffer so many difficulties because it was like new baby born in the world. All the systems and developments were prevailing in India. Pharmaceutical industry was one of the areas which were deadly affected with discrimination of India. Glancing in past the history of Pakistan’s pharmaceuticals industry, it indicates the three main phases of industry. 1948 to 1971 was the start of first phase. At the time of independence, Pakistan had no traders and pharmaceutical industries which can compete in world market or at local level even. All the importers were working in India who was importing all the medicines for subcontinent.
Hafeez, U., & Akbar, W. (2015) Being familiar with all above obstacles and importance of pharmaceutical industry, government of Pakistan established two pharmaceutical units in the area of Islamabad and Mianwali named as “Khurum Chemicals Limited” and “Antibiotics Private Limited” with the help of PIDB (Pakistan industrial development board). The advancement of the pharmaceuticals industry started right after the independence which continued till 1971 because of the advantageous policy of government. Due to the right industrial spirit and direction industry reached its peak point and got the leading position in the Asia. 1972 to 1991 second stage was started which decrepit era for pharmaceutical industry due to discriminatory policies of the government. Malik, M. S., & Kanwal, L. (2018) Throughout this time period the national pharmaceutical companies suffer a lot, which result the earlier created drug markets were vanished. Adding more, traders started to import manufactured medicines in low prices with authorization of government (Annexure Table 3), it resulted imports discouraging of national medicines at large scale. Mitchell et al. (2001) Last and third stage started its journey from 1991 to date which was again a favorable time for pharmaceutical companies because government decided to de- legalized the pricing strategy. It was good news for the industry because now they can play free where companies could fix the same price as multinational companies could. National companies grew up by obtaining more market share and international companies tried to exploit new regions.
|Annexure Table 3 List of Importers in Pakistan|
|1||CCL PHARMACEUTICALS (PVT.) LTD.||ASRAR AHMAD QURESHI||+92425140971||Pakistan||Karachi||122||26-May-2006||DetailsInquire Now|
|2||NAZIR NATURAL CURE||IRFAN AHMED SHAIKH`||+92222610633||Pakistan||Hyderabad||79||21-May-2006||DetailsInquire Now|
|3||NABIQASIM INDUSTRIES (PVT.) LTD.||DR. MUHAMMAD ASHRAF||+92215066316||Pakistan||Karachi||75||5-May- 2006||DetailsInquire Now|
|4||HAIR CLUB||DR. NISAR RASHEED||+92215838429||Pakistan||Karachi||57||5-May- 2006||DetailsInquire Now|
|5||PACIFIC||SAJID ULLAH GHUMMAN||+92427540491||Pakistan||Lahore||65||21-Apr-2006||DetailsInquire Now|
|6||PHARMAGEN LTD.||NAVEED N. SIDDIQUI||+92422414262||Pakistan||Lahore||83||20-Apr-2006||DetailsInquire Now|
|7||NAZIR NATURAL CURE||IRFAN AHMED SHAIKH||+92222610633||Pakistan||Hyderabad||45||20-Apr-2006||DetailsInquire Now|
|8||RAVI MEDICAL SUPPLIES (PVT.) LTD.||MUHAMM AD DANISH||+92425713050||Pakistan||Lahore||71||20-Apr-2006||DetailsInquire Now|
|9||P.D.H. PHARMACEUTICALS (PVT.) LTD.P.D.H. LABORATORIES (PVT.) LTD.||YASIR IMRAN||+924211122522||Pakistan||Lahore||81||20-Apr-2006||DetailsInquire Now|
|10||CCL PHARMACEUTICA LS (PVT.) LTD.||ASRAR AHMAD QURESHI||+92425140971||Pakistan||Lahore||56||18-Apr-2006||DetailsInquire Now|
|11||MARHABA LABORATORIES||HAKIM M. OSMAN||+9204211115215||Pakistan||Lahore||60||18-Apr-2006||DetailsInquire Now|
|12||NATIONAL CARE PACK (PVT.) LTD.||FEROZE AHMED||+92215057436||Pakistan||Karachi||57||18-Apr-2006||DetailsInquire Now|
|13||EFROZE||AZIM MIRZA||+922111133733||Pakistan||Karachi||61||18-Apr-2006||DetailsInquire Now|
|14||A H INTERNATIONAL||MUHAMMAD ASAD DADIR||+92432241627||Pakistan||Karachi||68||18-Apr-2006||DetailsInquire Now|
|15||MEDI PAK LTD||KHIZAR ASLAM||+920425116612||Pakistan||Lahore||67||11-Apr-2006||DetailsInquire Now|
|16||TAGMA PHARMA (PVT.) LTD.||HAMEED SHAMI||+92427531114||Pakistan||Lahore||74||11-Apr-2006||DetailsInquire Now|
|17||ETHICAL LABORATORIES (PVT.) LTD.||ABDUL WAHEED SHEIKH||+92427244320||Pakistan||Lahore||66||11-Apr-2006||DetailsInquire Now|
Facts about Pakistan…….Health Focus
Most precious asset of the world is the human assets who make the world more contented for the well-being of humankind. According to the PPCO 2017 Pakistan is become the 5th populated developing country with the total population of approximately 207.67M in the world. The population of Pakistan4 is correspondent to 2.83% of the total population of the world. The health sector is neglected by the government of Pakistan; health conditions are not too good to tackle so much population. It is estimated that a hospital is allocated to 160000 people as an average. Total budget which allocated to the health sector is approximately 1% which is too low as compare to neighboring countries. So according to UN statistics 2023 average life of Pakistani nation is 67.79 years while comparatively developed counties are enjoying 85 years as an average age. Low per capita income is another reason which is much poor and not letting people to get good health facilities. Medicines prices are relatively high as compare to income. Most of the patients are unable to afford the medicine prices this fact is backed by the following evidences.
Callen et al. (2013) Per capita income is one of the criteria to measure how much affordability to purchase things. According to Economic Survey of Pakistan PES5 2022 the average income which is earned by Pakistani individuals is $1798. According to the World development indicator 2022 the GNI6 is $376.49 billion, to meet the basic needs of life which is very low .Overall growth rate of country contributes much in the economic growth; Pakistan is growing annually 6.0% (PES, 2022). Heerdegen et al. (2022) According to Pakistan Federal Bureau of Statistics there is 22.3% percentage of people not meeting daily food needs and living below national poverty line consequently another wretched situation which shows the unfavorable circumstances of health sector.
It was March, 2005 when Chaudry Muhammad Imtiaz with his legend companion Mr. Ishfaq Mehr, who has extensive exposure of different national and multinational pharmacy companies launched a minute project of pharmacy in Sundar Industrial Estate7 in Lahore. It was a milestone and a mega contribution in making Pakistan self-made in pharmacy products.
Mr. Imtiaz was a very vigilant person being a contractor and marketer of different national and international companies’ young entrepreneurs were generating only revenue of Rs. 4 million but eventually this amount rose to Rs. 100 million. It was the return of opportunity recognition and its implementation. National companies have to meet the high quality because it is the survival matter and it helps them in stand with the high competition in global market. Maximum benefits can be yielded by producing low-cost medicines if government subsidies are abeam to the industry. Khan, R., & Huda, F. (2016) This is one of the ways by which industry can progress by leaps and bounds but India and China can give tough time because of their government favorable policies. Nevertheless, it is not the only way; by providing low-cost medicines would not the choice of every customer, the ways are open, study tells us that there are two types of diseases in the world, some are prevailing worldwide and some are confined to the developing countries and so, is the research pattern. WHO report says that western companies spend more on Research and Development (R&D) but major on such diseases which are common both in rich and poor countries like AIDS, Breast Cancer etc. National companies have golden chance to explore those areas of diseases (infectious and childhood diseases etc.) which are typically to developing countries like Pakistan by this way these companies can gain maximum market share and can survive. Such R&D projects will stimulate new horizons for developing countries particularly in Pakistan in the area of research. Such kinds of research projects can also avail the grants from UNO and WHO to gain the research and development heighten in this sector.
An additional rising concept in pharmaceutical manufacturing specially and overall, in all industries generally is contract manufacturing. Contract manufacturing reduces overall cost because overheads decreases and the cost associated with fixed assets. Since the last few years, the trend is increasing tremendously in whole globe. There is an opportunity for national companies that these can work as subsidiaries of MNC’s numerous of have yet to become visible in Pakistan. China is the emerging player in the world economy and is the number 1 largest exporter in the world. China has implemented the strategy to be the business partner of the MNC’s and worked as the contract manufacturer for these companies. Our share in the whole China market is 2 percent in spite of this that we are friends but unluckily we cannot capture the market.
Issues and Problems Incubator for Learners
Stakeholders disguises some hidden issues particularly government, it hinders in setting up of new ventures, with the exception of its deceptiveness. Corruption and preferential treatment in government sectors has always laid down business in Pakistan particularly in pharmaceutical sector. Alike to all businesses when Medisave started, it suffered a lot of obstacles from authoritative offices. Mr. Imtiaz wished that he could provide advanced opportunities and meaningful work to the employees and he also wished that he could provide highly quality products to the people which will improve the quality of life and satisfy the customer needs.
When it started incorporation cost very serious and other requirements were high, like there must all setups above exception even those as well which have no direct link with production. Working environments must be lucrative for workers and staff. In sense it seems to be very good but all these things’ ads cost to the production which unable to compete in national as well as in international market.
Calamitousness to the situation: all the prices is controlled by ministry, which strictly observes the prices and heavily penalizes to trespassers without any discrimination. Most of the time if raw material prices go up or the FOH8 increases no one can increase prices without permission of ministry. Electricity is another tragedy for the Pakistani nation and especially for the industry.
A venture started with capital of Rs. 200 million could capitulate only 20 percent of its capacity with ranging of two hundred to two hundred fifty products range. Eighty percent of its potential is being spoiled due to shortage of labor, raw material and other energy crises. War against terrorism and disfigured image of national brands is another additional factor of miserable conditions, facts can be contradictory (Annexure Table 4).
|Annexure Table 4 Commodity Composition of Trades, 2004|
|Principal Export Products||Principal Import Products|
|Textiles (fabrics and yarns)||$ 6.5 billion||Petroleum products||$ 3.7 billion|
|Apparel and clothing||$ 3.0 billion||Industrial machinery||$ 1.3 billion|
|Rice||$ 682 billion||Organic chemicals||$ 1.2 billion|
|Sports goods||$ 315 billion||Cotton and fibers||$ 800 billion|
|Total Exports||$ 13.4 billion||Total Imports||$ 17.9 billion|
Quality of an organization is determined by the quality of management. Medisave always believe in good corporate governance and control which fosters to higher growth and development or the way round. Medisave always deem in impersonal management and proper recruitment process emerge, there is a need to keep employees abreast of modern development. There is a need of and method which ensure right people at right place. The speed at which new technologies updating in HR practices like arranging the training program to empower the workers with new skills. The focus of the company is on the quality of the products which is the mission of the company it is possible when you have trained & skilled staff. Management policies always encourage fresh candidates, some policy makers are in favor of it and few are alongside of it. Medisave consider society as a vital stakeholder of organization and it is responsibility of it to serve it in better way. Being part of medical sector Medisave is fulfilling its responsibility by conducting health forums and free medical camps in rural areas across the boundary. To follow all the rules the regulations inculcated by Finance Ministry and never to by-pass them is basic part of its corporate ethics. Medisave always contracts with approved suppliers and distributors to ensure quality standards. Quality is a buss word now days, it has numerous dimensions. Medisave keep alive its quality with appropriate quality assurance systems. It focuses on in- process checking of material, analytical process, bills warranty, drugs inspection. Mostly drug dealers indulge in licensing (Figure 1) corruption with support of drug mafia and Medisave always condemn it.
Linking to the establishment, Medisave progressed by leaps and bounds and today it has got license to export to “Sri Lanka, Vietnam, Kenya, Fiji and Philippine”. It is enjoying revenue of Rs. 100 million. Future has not been fixed at these achievements, Medisave is planning to launch 1st Bio Technical plant is Pakistan which is for the treatment of cancer. It is also planning for next five years to institute Vaccine and Penciling block to realize its dream of continuous growth. Future belongs to them who steps forward with honesty, determination, self-realization and who believe in self-efficacy.
7.Sundar Industrial Estate comprising of 1603 acres of land was inaugurated in Feb, 2007 and is a vision turned into reality. It isthe first project assigned to PIE & was envisioned to be an ‘island of facilitation in the sea ofharassment’ for prospective industrialists. The objective was to develop an industrial estate where issues of industrialists are handled and problems solved through ‘One Window’ operation. There are 92 factories in production (as of April, 2010) and an additional 102 are expected to join in production by December, 2010. SIE is ideally located at approximately 45KM from the centre of Lahore on Sundar Raiwind Road source: http://www.pie.com.pk.
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Received: 27-Mar-2023, Manuscript No. jiacs-23-13392; Editor assigned: 30-Mar-2023, PreQC No. jiacs-23-13392(PQ); Reviewed: 13-Apr-2023, QC No. jiacs-23-13392; Revised: 30-Jun-2023, Manuscript No. jiacs-23-13392(R); Published: 07-Jul-2023