In the first quarter after price deregulation, Pakistan’s pharmaceutical industry has posted its highest-ever quarterly sales, raking in a staggering Rs237 billion in the second quarter of 2024 – a 25% increase over the same quarter last year, according to data from IQVIA, a healthcare analytics firm.
This growth in revenue was driven in part by increased volumes, but mostly by increasing prices. A hefty 20% of the year-on-year increase is attributed to price hikes, while the remaining 5% is due to a rise in sales volumes. The price surge follows the government’s decision to deregulate drug prices for non-essential categories earlier this year, alongside a one-time price adjustment for 146 drugs in February 2024.
Following that robust quarter, annual revenue for the pharmaceutical sector in Pakistan hit Rs916 billion in fiscal year 2024, up 22% from the previous year. This 22% annual growth also surpasses the industry’s five-year compound annual growth rate (CAGR) of 17%, suggesting that the price deregulation may have a significant impact on the pharmaceutical industry’s ability to increase its revenue in the years to come. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
