ISLAMABAD: Fueled largely by steep price increases rather than a surge in medicine consumption, Pakistan’s retail pharmaceutical industry crossed the Rs1.049 trillion mark in sales during the 12-month period ending March 2025, reflecting a 20.62 percent growth in rupee terms and 23.14 percent in US dollar terms.
According to IQVIA data, unit sales rose by only 3.63 percent year-on-year to 3.77 billion, underscoring a growing value-volume disparity that continues to widen across the market.
Analysts attribute over two-thirds of the market’s growth this year to price escalation, as national and multinational firms adjusted prices amidst inflation and currency pressures.
The MAT Q1 2025 report, issued by IQVIA Pakistan, indicates that the industry has grown at a compound annual growth rate (CAGR) of 19.09 percent in rupee value over the past four years, while the CAGR in US dollar terms stands at just 4.05 percent—suggesting that the rupee’s depreciation and pricing dynamics are major contributors to the overall revenue surge.
However, the modest increase in units sold—just 5.49 percent over five years—raises concern about the affordability and accessibility of medicines for the average Pakistani.
National pharmaceutical companies dominated the market in terms of volume, selling 2.91 billion units with a year-on-year growth of 4.98 percent.
Multinational companies (MNCs), on the other hand, experienced a 0.72 percent decline in units sold, slipping to 856 million, despite recording a 19.04 percent increase in sales value. This divergence illustrates how multinationals, too, benefited from price-led growth rather than expanded demand.
The October-December 2024 quarter emerged as the most profitable in Pakistan’s pharmaceutical history, with monthly sales hitting an all-time high of Rs96.48 billion in October alone. Of this, national companies contributed Rs75.39 billion and MNCs Rs21.09 billion.
The industry maintained this elevated pace through the subsequent quarters, although the underlying driver remained price rather than volume.
Corporate concentration also remains high, with 87 companies each surpassing Rs1 billion in annual sales and collectively holding a 96.52 percent market share.
The most dominant group includes 20 companies with sales exceeding Rs40 billion—among them Getz Pharma, Sami, GSK, Abbott, Searle, and Martin Dow—which together account for Rs450 billion in value and a 42.92 percent market share. This group alone posted a combined growth rate of 23.28 percent over the previous year.
Companies in the Rs10 billion to Rs40 billion revenue tier added another Rs348 billion to the total industry value, with a 33.18 percent market share and average growth of 15.7 percent.
Firms in the Rs5 billion and above segment contributed Rs124 billion in revenue, growing by 23.4 percent year-on-year, driven mainly by strong domestic players such as Hilton, OBS, High-Q, PharmEvo, and Ferozsons.
Among multinational players, Abbott, GSK, Haleon, Novartis, and Novo Nordisk emerged as top contributors, with seven of the top ten MNCs achieving double-digit growth.
However, IQVIA’s absolute growth analysis confirms that much of the industry’s overall gain came from price increases, with 68.96 percent of the total market’s growth attributed to pricing. New product launches accounted for 10.44 percent of the growth, while volume contributed just 17.99 percent.
A total of 636 new products were launched over the past year, including 623 by national companies and only 13 by MNCs. These contributed Rs7.15 billion in new revenue, equivalent to less than 1 percent of the total market.
Industry analysts warn that while the revenue surge paints a picture of market growth, it also masks critical structural issues. The minimal increase in unit consumption combined with heavy price reliance suggests that many patients may be priced out of essential treatments. Experts urge greater regulatory oversight on pricing mechanisms, improved public sector procurement strategies, and policies that balance profitability with public health priorities.
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