However, to gain a wider health professionals' support, it is vital to understand the issues surrounding generic medicines. Value Added Intellectual Coefficient (VAIC) developed by Pulic (1998) was operationalized to achieve the desired aim. This paper discusses the numerous issues of formation and development of clusters, as well as evolution of the regional economies by means of business clusters. Book a FREE solution demo to gain comprehensive insights into advanced analytics solutions curated for the pharma industry. Through this way, it will contribute to the continuous promotion and active growth of SMEs, All rights reserved. Financial Markets is an essential reference source that discusses the complex nature of financial markets and the growth of developing economies. Access scientific knowledge from anywhere. Unless the government encourages and promotes a culture of academia and research in public-sector universities, the country will continue to lose opportunities in this important arena. How can Pakistan increase the export of medicines? Out of the administered copies, 45 representing 90% were successfully returned while 5 copies representing 10% were not returned. Since the manufacturing facilities at Pakistani pharmaceutical units do not have FDA approval, this prevents major multinational companies from entering the market. Home China and India are providing benefits to their patients with new treatments. This study is based on limited scope. there is significant positive impact of intellectual capital on firm’s financial performance among pharmaceutical industries of Pakistan. This means that regional strategies might play a fundamental role in the management of intangible resources in regions. The problem of shortage of anti-TB drugs has been going on for the last several months. At the time of independence in 1947, there was hardly any pharma industry in the country. Company’s Financials This industry also contributes in economic growth and development. The findings show that organisational value is created and nurtured through the effective interaction of the three dimensions of IC, and developing an IC System would help to identify which combinations of IC elements create value. Editor’s Picks, Contact Out of which 50.18% of the pie goes to the top ten pharmaceutical companies operating in Pakistan. Research limitations/implications – This study can be extended in the following ways: researchers can adopt panel data and use more representative measures to examine the dynamic relationship between intellectual capital and performance; and future research should seek to examine the interaction effects of other perspectives of intellectual capital to understand further the comprehensive influence on performance. It is a fact that the local private sector is not motivated to conduct research. Irony is that imported alternates, many of which come through grey channels, which are made available during periods of shortage are priced almost 10 to 15 times higher but DRAP neither try to control the prices of these drugs nor allow local manufacturers even a marginal price increase to keep these drugs viable. In today’s guide, we’re going to go through some of the biggest challenges to pharma and … The biggest challenge faced by the industry is the complete freezing of prices of pharmaceutical products. China and India are benefitting from generating revenue by giving industry status to pharmaceutical research. Today Pakistan has about 400 pharmaceutical manufacturing units including those operated by … These companies include both national and multinational corporations and wrestle with more than 800 pharmaceutical companies in Pakistan to take the top positions. economic development and determine the competitiveness of the internal Russian market. What has been depicted herein is a proposed assessment model of the IC development. AN INTRODUCTION . The ultimate sufferers are the patients. India’s exports are in excess of US$15 billion per annum while Pakistan’s exports have declined and are now approximately US$160 million a year. About the Pharma 2020 series. They challenge the thinking of country general managers and teams by providing local and cross-industry insights into what great access looks like, and run capability-building programs for local practitioners, anchoring learning in the local business context through months-long … These fundamental pharma ecosystem, business model and technology changes are the factors leading to a new manufacturing and product supply industry transformation called the New Pharma Reality. The firm’s financial performance is measured by using profitability measures including ROE (Return on Equity) and ROA (Return on Assets), market to book value and asset turnover. Pharmacy Profession in Pakistan: Current Status, Future Challenges and Opportunities Published on July 10, 2016 July 10, 2016 • 86 Likes • 20 Comments The major hurdle in research in local pharmaceutical companies is the lack of government interest. Unfortunately, pharmaceutical companies in Pakistan have also stopped producing drugs for tuberculosis due to non-viability. The results indicate that majority of the banks showed satisfactory intellectual performance. Poor policy and an inefficient regulatory structure is denying life-saving breakthrough technologies to patients in Pakistan. At present, Pakistan is exporting its medicines to a few Far Eastern, South East Asian, African and Middle Eastern countries. Although governments have collected this amount from each company every year, there is absolutely nothing to show for it. employment opportunities, tangible and intangible assets (investment) in the environment. Q. Therefore, the recent very nominal price increase will not help companies to continue producing anti TB and other life saving medicines, which DRAP considers essential to cure infectious diseases. PHARMACEUTICAL A pharmaceutical is any kind of drug used for medicinal purposes, like: •Cough Syrup •Sleeping pills etc. Sustainable Frankly speaking, the shortage of various medicines is directly linked to the federal government’s failure to resolve this long standing pricing issue. The pharmaceutical industry in Pakistan is growing at a rapid pace, contributing significantly to the national economy. Pakistan’s pharmaceutical industry is worth a little less than PKR300 billion. Pharmaceutical companies were highlighting for years the hardship they were facing due to the increase in input costs, pushing almost half the life saving drugs into hardship category. With the increasing population and shrinking resources, generics could be a recipe for improving the access to and affordability of medicines in Pakistan. What is the pharmaceutical industry doing to ensure the availability of life-saving drugs in the market? In this case it can clearly be seen that there is a requirement to improve and further develop the health sector in Turkey. Responsibility for shortages must be taken by DRAP. Research needs huge funds and consistent efforts by academic institutions, which Pakistan doesn’t have. It is unfortunate that not only are medicines not available but there is no proper mechanism to regulate the prices charged for those drugs smuggled in through grey channels. Pakistan’s total pharma market generates around $3.25 Bn every year. The pharma ecosystem is highly networked with the pharma industry specific requirements eg, for the collaborative R&D data management and supply chain regulatory compliance reporting. These drugs are needed by millions of people in Pakistan every single day since these diseases still exist in the country, therefore DRAP should take responsibility and give due price adjustment to local companies and ensure that needy patients easily get these drugs. The results obtained from this study have shown that in general, the direct impact of government health expenditures on economic growth in Turkey is positive and significant and its indirect impact is negative and significant. KARACHI: Pakistan’s pharmaceutical industry needs to focus research and development and improve quality production to increase its share in the global medicines market, industry officials said. Therefore, the government must respond by providing a subsidy to companies manufacturing essential drugs so that they don’t continue to lose money by making a drug at a lower price. In order to make a clear illustration of how the proposed model might be utilised in practice, it has been tested in one of the Polish regions, namely in Silesia. It uses aggregate and manufacturing industrial production as total output, total government health expenditures, general government cure and pharmaceutical products health expenditures, general government medicine and health expenditures series belonging to the, As more and more emerging markets seek to compete in an ever-growing pool of global competitors, rapidly growing economies are consistently running into issues relating to the proper understanding of fiscal markets. Moreover, this effort will provide the baseline data to assist policy makers to promote the quality use of generic drugs. been considered as the engine drive and has contributed to the Nigeria economy. More specifically, this chapter highlights the relationship of intellectual capital with the performance of organizations of various sectors. Q. However, there are many challenges confronting the operation of small scale businesses. If Pakistan aims to double its exports to Sri Lanka within a year as stated recently it will need to review its drug pricing mechanism. Cluster sampling method was used in selecting one local government area from three senatorial district of the state and random sampling technique was used to arrive at a sample size of fifty (50) respondents. In addition, this chapter discusses the various major components and models of intellectual capital. Regional development and growth of competitive advantages are an urgent task for the Russian economy, as is shown in many policy documents. There are many different interpretations of the notion business cluster, but the authors are unanimous in the position that clots of enterprises that comprise a cluster have a positive effect on economic growth in general. Counterfeit medicines are estimated to cost the government over Rs 12 billion a year. Besides, this work will serve as an information However, after considering the interaction between innovation capital and IT capital, there is a positive effect on firms' performance. In recent times the situation has become worse as most of the raw material is imported and any increase in dollar rates adversely affects the profitability of the local manufacturers. Challenges. This is in contrast to China and India, which have emerged as the top destinations for researchers in the global pharmaceutical industry. As per results of IMS compiled at the end of quarter 1,1999, the industry recorded a growth of 8.6%, while last year for the same period, growth of only 1.2% was recorded. The main objective of this study is to introduce the concept and applications of intellectual capital in Pakistani pharmaceutical industry. PIC/S provides cooperation in the field of good manufacturing practice and if Pakistan becomes its member and follows its regulations, the country’s medicines will have an access to at least 60 countries, from Malaysia to Sweden. Due to pricing issues, some life-saving drugs have been discontinued too, such as anti TB drugs. List of Top 10 Pharmaceutical Companies of Pakistan. The most essential message of the paper is that a new regional approach to IC should be considered in regard with regional development theories. Factories manufacturing sub-standard drugs should be sealed immediately and the elements involved in this evil trade must be punished. With the current devaluation of Pakistani Rupee against Dollar, Pharma industry in Pakistan is facing new challenges for its survival. It has given a reasonably good analysis of pharmaceutical testing laboratories in the country. But, what are they, and what can you do about them? Intellectual capital (IC) has become a critical performance driver. The Pharmaceutical industry's long successful strategy of placing big bets on a few molecules, promoting them heavily and turning them into blockbusters worked well for many years, but its R&D productivity has now plummeted and the environment’s changing. They need that drug right away. A. This study is a preliminary study that focuses on banking sector to examine the intellectual capital performance through using VAIC and intellectual capital efficiency (ICE) method. What do you have to say about that? On the other hand the growing menace of counterfeit products has become a serious problem for the established pharmaceutical companies. A.R&D in Pakistan is negligible and we are light years behind other regional countries like India and China. Approval of pharma production plants by FDA is not a part of the requirements laid down by DRAP. Pakistan has a very vibrant and forward-looking Pharma Industry. ASSALAM O ALAIKUM 2. More and more people in the pharmaceutical industry are taking away their investments and ultimately it will be poor patients who will suffer. Q. 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This evidence means that the pharma industry is going to have extra load as it is expected to produce more medicine for more people in the near future. Our pharma industry is one of the highly regulated in the country and in the region as well. That’s one of the reasons why Pakistani pharma companies are well received and are achieving success in other regions as well. Like the rest of the world, the government should control prices of only essential drugs listed with the WHO and let the market forces determine the prices of other medicines. The findings of this study may be a good reference for future study and useful input for banking sector to strengthen their intellectual capital for optimum output.