Pakistan’s pharmaceutical industry reported sales of PKR 916 billion (USD 3.3 billion) in the fiscal year 2024, reflecting a 22% year-on-year (YoY) increase in PKR terms and a 7% rise in USD terms, according to data from IQVIA, a leading healthcare data provider, cited by Topline Securities.
“This growth surpasses the five-year (FY20-FY24) Compound Annual Growth Rate (CAGR) of 17%,” noted Topline Securities.
The sector achieved its highest-ever quarterly sales in the fourth quarter of FY24, totaling PKR 237 billion (USD 860 million), marking a 25% YoY increase. Of this growth, 20% was attributed to price increases, while the remaining 5% was due to higher sales volumes.
Pakistan’s pharmaceutical market comprises a mix of local and multinational companies, with major players including Getz Pharma, The Searle Company, Ferozsons Laboratories, GlaxoSmithKline (GSK), and Abbott Laboratories.
The significant sales growth was largely driven by the government’s decision to deregulate drug prices for non-essential categories and a one-time price increase for 146 drugs in February 2024. Although the Lahore High Court initially stayed the deregulation decision to seek clarification, the court later ruled in favor of the pharmaceutical industry, allowing companies to adjust prices more efficiently.
Topline Securities reiterated that this deregulation will enable pharmaceutical companies to restore their historic gross margins, which are currently at a decade-low of 26%.
