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. More specifically, this chapter highlights the relationship of intellectual capital with the performance of organizations of various sectors. The basic purpose of this study is to analyze the impact of intellectual capital on corporate financial performance. What is required is a transparent and set formula for increase in prices. It should not be left to the discretion of any official as this will only open the door to graft. 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. 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. 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 the responsibility of the government and the regulatory bodies to ensure the availability of medicines to provide relief to those suffering from disease. Intellectual capital is mainly based on knowledge and useful information. 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. Originality/value – This paper extends prior research's viewpoint and suggests the non-linear relationship between innovation capital and performance with empirical evidence. Likewise, some guidelines were offered in order for SMEs to reach performance and Latest News We use cookies to ensure that we give you the best experience on our website. A. Nowhere in the world, other than Pakistan, does the state have blanket control over prices of all medicines. Small scale businesses have been recognized as primary engine of economic growth in the society. At the time of independence in 1947, there was hardly any pharma industry in the country. What is the pharmaceutical industry doing to ensure the availability of life-saving drugs in the market? The pharmaceutical industry in Pakistan is growing at a rapid pace, contributing significantly to the national economy. The results of analysis have supported the proposed hypothesis i.e. The results indicate that majority of the banks showed satisfactory intellectual performance. The first major challenge which the Pharma Industry faces is the total government control on the prices of all the enlisted products. Intellectual capital is playing a critical role to create value from the combination of tangible and intangible assets to enhance the performance of organizations. More and more people in the pharmaceutical industry are taking away their investments and ultimately it will be poor patients who will suffer. The Pakistan pharma industry is relatively well known in the Developing Asian markets with an export turnover of US$1 Billion as of 2013. Owners of the units manufacturing medicines without a license deserve maximum punishment and this menace should be eliminated through effective measures and stringent. The global medicines market has reached $1,100 billion while Pakistan’s pharmaceutical industry size is less than three billion dollars. [ citation needed ] Its main partners included neighboring Afghanistan which itself doesn't have a medicinal industry, Tajikistan as well as other central Asian republics. PW provides integrated, single-source logistics solutions to cover the whole Pharma supply chain from manufacturing through delivery to the final customer. 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. In the present century, intellectual capital is recognized as the most important and strategic asset for organizations. Purpose – This study aims to ask two important research questions: “Do the investments of innovation capital and information technology (IT) capital have a non-linear relationship with firm performance?” and “Does the interaction between innovation capital and IT capital have synergy effects on firm performance?” Design/methodology/approach – The authors employ multiple regression models and add the squared terms of research and development (R&D) intensity and IT intensity to examine the non-linear relationship between innovation capital, IT capital and performance. 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. So, how are pharma specialists going to meet arising challenges in 2020-2021? Since the manufacturing facilities at Pakistani pharmaceutical units do not have FDA approval, this prevents major multinational companies from entering the market. Regional development and growth of competitive advantages are an urgent task for the Russian economy, as is shown in many policy documents. Increasing populations In a knowledge-based economy high tech organizations are facing tremendous challenges to gain competitive advantage. What has been depicted herein is a proposed assessment model of the IC development. The SME sector is a major engine which encourages the growth of jobs The study conclude that small scale businesses possess enormous potential capability to improve their operation with more support given at all levels in the society. A. 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. Featuring research on topics such as international markets, transition economies, and financial instability, this book is ideally designed for academicians, students, researchers, policymakers, professionals, financial analysts, and economists interested in the future of reformed worldwide banking systems. There are large number of low volume and low quality manufacturers. This study is based on limited scope. 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. Pakistan’s pharmaceutical industry is a developing industry and faces various challenges. The DRAP should be strengthened and its regulatory capacity be brought at par with global standards. They need that drug right away. In this case it can clearly be seen that there is a requirement to improve and further develop the health sector in Turkey. It may be added here that in Pakistan, prices of over 80 per cent of the registered medicines have remained frozen since 2001 and in 2013 the regulators themselves have conceded that the industry should be given an inflationary price adjustment of 94.24%. Intellectual Property Rights (IPR) regime has improved in the last few years but still major challenges are faced due to widespread availability of counterfeit and spurious drugs. The principal aim of this study is to rank Pakistani public and private banks based on intellectual capital performance. Your right to know India’s pharma industry is facing challenges from China – and it’s bad news for developing nations The advantages that made India the ‘pharmacy of the world’ are getting eroded. Q. A.R&D in Pakistan is negligible and we are light years behind other regional countries like India and China. The SME sector has developed rapidly over these years. 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. The pricing delay also happens when a company wants an adjustment due to the increase in cost of doing business. Because of different prices, patients are doubtful if the drugs are genuine or spurious. Generic penetration varies in the developing world and the sale of generics are growing in all the major markets, but the proper domestic availability of generics and their quality use is still a question mark. Saeed, while highlighting the advantages of establishing the drug-manufacturing units in Pakistan, stated that the country has a low-cost base and the cost of converting generic drugs into their more famous derivatives is among the lowest in the world. A. An exclusive interview with Ayesha T Haq, Executive Director, Pharma Bureau on the issues faced by the Pakistan Pharma Industry. There were 36 MNCs working in Pakistan in the early 2000s in the sector, that number is now down to about 22. Pakistan is among several LMICs that have experienced considerable growth of their local pharmaceutical industry (Aamir and Zaman, 2011). Investor Information Challenges Faced by Pakistani Pharmaceutical Industry: An Intellectual Capital Perspective.pdf Available via license: CC BY-NC-ND 4.0 Content may be subject to copyright. This chapter looks at the concept and application of intellectual capital and its associated challenges of organizations in a competitive environment. From healthcare reform, to slowing global pharmaceutical industry growth, to a possible showdown in biosimilars, DCAT Value Chain Insights examines the top 10 items that should be on your pharmaceutical market radar for 2017. Treatment of complicated TB cases couldn’t be done without these two first line life-saving drugs. Value Added Intellectual Coefficient (VAIC) methodology is employed, in order to measure IC (Intellectual Capital) and its different components. However, after considering the interaction between innovation capital and IT capital, there is a positive effect on firms' performance. International Journal of Applied Business and Economic Research. A. Pakistan’s pharmaceutical sector is simply unable to meet local demand and increase exports under the current regulatory regime, which is extremely oppressive. The menace is adversely affecting the government revenues and thereby the public sector socio-economic programs. 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. Industry sources say that local companies meet around 70pc of the country’s demand for finished medicine. It has the required infrastructure, dynamism, quality, human resources and the experience to provide quality drugs that can improve Pakistan’s health related outcomes. Challenges Faced by Pakistani Pharmaceutical Industry: An Intellectual Capital Perspective.pdf, All content in this area was uploaded by Muhammad Khalique, Challenges Faced by Pakistani Pharmaceutical Industry: An Intellectual Capital Persp, preliminary in nature and it will also be a milestone for future research on this, Challenges faced by Pakistani pharmaceutical in. SMEs performance act as a significant Jan 01 1970 • Pakistan has a very vibrant and forward looking Pharma Industry. The study adopted both primary and secondary types of data. conclusions and concrete recommendations. The results can provide the reference for further research about the relationship between intellectual capital and performance. The regions with business clusters become the leaders of. Our pharma industry is one of the highly regulated in the country and in the region as well. Neighboring India and China liberalized their drug pricing, which has benefitted domestic consumers and accelerated their exports. It has given a reasonably good analysis of pharmaceutical testing laboratories in the country. The total worth of pharmaceutical industry of Pakistan is estimated at $ 1.5 Billion. In today’s guide, we’re going to go through some of the biggest challenges to pharma and … The study reveals that small scale business owners face a lot of challenges which includes; poor managerial skills by most of the operators, inadequate capital, difficulty in assessing fund, inaccurate record of operation and unfavorable environment. Pakistan's pharma industry fears shortage of raw material amid COVID-19 outbreak Offici­als say lockdo­wn in foreig­n countr­ies may impact supply of raw materi­al to Pakist­an By Usman Hanif Through this way, it will contribute to the continuous promotion and active growth of SMEs, The major hurdle in research in local pharmaceutical companies is the lack of government interest. Zafa pharma industry in Pakistan manages to keep healthcare accessible by providing affordably priced high quality care to people. The ultimate sufferers are the patients. 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. 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 most essential message of the paper is that a new regional approach to IC should be considered in regard with regional development theories. The pharmaceutical industry is trying to increase its exports but that is possible only if the Government solves the aforementioned issues and problems. Pakistan has a very vibrant and forward-looking Pharma Industry. Sustainable As a result, to maintain quality, most MNCs go to India or Bangladesh for quality production while the plants in Pakistan run below capacity. competitive advantage. Several multinationals have left Pakistan over quality production and cost issues. A. Pakistan should frame and implement a drug policy that ensures the manufacturing of quality medicines and elimination of spurious drugs to save the lives of the common man in the country and sentences that will act as a serious deterrent should be awarded to the manufacturers of substandard, spurious, unhygienic, and fake medicines. However, to gain a wider health professionals' support, it is vital to understand the issues surrounding generic medicines. economic development and determine the competitiveness of the internal Russian market. Lead Stories With the current devaluation of Pakistani Rupee against Dollar, Pharma industry in Pakistan is facing new challenges for its survival. Home Challenges. Contract Manufacturing is basically the manufacturing of drugs through other pharmaceutical companies having specialization in certain formulations. It is unfortunate that Contract Manufacturing, despite having a lot of potential, is not being practiced in Pakistan. This means that regional strategies might play a fundamental role in the management of intangible resources in regions. as easily to increase the level of the firm’s performance and business competitiveness in employment opportunities, tangible and intangible assets (investment) in the environment. Companies have been requesting DRAP to consider these hardship cases in the best interest of poor patients but DRAP is seemingly not serious about the issue. This has always been a difficulty for the pharma industry. 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. Pharmaceutical companies are bound to pay one per cent of their gross profits in a government fund established for research purposes under the Drug Act, 1976. Pakistan Pharmaceutical Industry. In addition, this chapter discusses the various major components and models of intellectual capital. Research could be done if the public and private sector joined hands and provided adequate funds to public-sector universities. China and India are providing benefits to their patients with new treatments. If you continue to use this site we will assume that you are happy with it. What are the major challenges that the Pharma sector is confronted with? 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. The basic hypothesis regarding the model has been formulated in order to test the validity of such a model. The main purpose of this paper is to present a conceptual framework of intellectual capital (IC) development in regions. Q. Editor’s Picks, Contact Pakistan Pharmaceutical industry contributes 0.30% of the world’smarket, which is very small and 1% of Pakistan’sGDP annually *Moving Average Total (MAT) sales at end-Mar 1 ... Pharma industry’sOL, though dropped in CY16 to 1.9times from 2.3times in CY15 on the back of sale price increase. IMS : Financial Analysis of Pharmaceutical Industry of Pakistan. SUMMARY This paper reviews existing research papers on the recovery of the regional economy from the Great Hanshin-Awaji Earthquake of 1995, focusing on the labor and the financial market, and states the prospects for future research topics. Economic Recovery after the Great Hanshin-Awaji Earthquake of 1995: A Review on Labor and Financial... Government Health Expenditures and Economic Growth: A Feder-Ram Approach for the Case of Turkey, Emerging Research on Monetary Policy, Banking, and Financial Markets, Cluster management in the regional economy of the Russia: Formation and development. The major aim of this paper is to Medicines play an important role in health systems throughout the globe; however one third of the world population does not have access to essential medicines. The cost of doing business has risen by over 100 percent during these 15 years of dormant prices. Access scientific knowledge from anywhere. © 2008-2021 ResearchGate GmbH. Company’s Financials pharmaceutical industry of pakistan 1. growth and the increase of SME performance, competitiveness will open numerous doors for Since the last quarter of the 20th century, business clusters have become an important factor in the development of commercial relations between economic entities. You can bear a loss for a time but you can’t survive with continual losses. This is because of the lack of government support. The development of this sub-sector is an essential element in the growth strategy, not only in contributing to improved standard of living but also in bringing substantial local capital formation and achieving high level of productivity and capacity, equitable and sustainable industrial diversification and dispersal. All rights reserved. Q. A. 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