Major Therapeutic Categories
Antibiotics, vitamins and analgesics are the top three therapeutic classes in terms of sales by value. Anti-biotic dominate the market with approximately 24% of the market value. Vitamins and analgesics account for 6.6% and 6% of the market respectively. The vitamins and antibiotics sectors are vital not only because of their large size but also because of their astronomical growth. Sales of antibiotics are growing at 30% per year, while the growth rate in the vitamins segment is 20%.
The importance of vitamins in the domestic market is compounded by the fact that being nonessential drugs, their prices are now deregulated. This price deregulation, which occurred in 1993 has enhanced the competition within this therapeutic strata of the market and has placed companies like Abbot, Cyanamid, Pfizer, Sandoz, Squibb and Roche in a privileged position. Well-positioned competitors in the antibiotic arena include Smith Kline, Wyeth Squibb, Sandoz, Pfizer and Wellcome.
Seprtan, Amoxil and Ampiclox are three largest selling products in Pakistan. Wellcome produces Septran, whereas the other two are Beecham’s products. The sales of each of these three products are approximately $6 million to $9 million, larger than the total sales of many medium sized companies in the pharmaceutical industry in Pakistan.
The following table shows the value sales of the top 10 products:
THE VALUE SALES OF THE TOP 10 PRODUCTS
| | | |PRODUCT |ESTIMATED SALES 1993 (RS. MN) | |Septran (Wellcome) |272 - 290 | |Amoxil (Beecham) |250 - 270 | |Ampiclox (Beecham) |160 - 170 | |Velosef (Squibb) |155 - 165 | |Neurobion (Merck) |155 - 165 | |Brufen (Boots) |155 - 165 | |Tarivid (Hoechst) |140 - 145 | |Erythrocin (Abbot) |130 - 140 | |Augmenting (Beecham) |110 | |Postan (P. Davis) |110 |
The market size of the pharmaceutical industry is estimated to be around $550 million. The total installed capacity in the private sector is estimated to be 12 billion tablets, 1.2 million capsules, 312 million ampoules, 173 million vials, 32000 tons of liquid preparations and 2000 tons of semi solid (ointments) preparations. In rupee terms the total pharmaceutical market in 1992-93 worked out to be Rs 20 million. The annual average growth was estimated to be 16.1%. This growth has been achieved despite the strict price controls. However due to the recent devaluation of the Pak rupee against US dollar, the pharmaceutical industry may find it difficult to maintain their growth rate.
Since approximately 95% of the raw material requirements of the industry are met through imports, the recent devaluation will increase the cost of production and may thus have a...