In the first quarter after deregulation, pharma sector revenue up by 25%

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.