Pharmaceutical industry rues lack of business doing environment

KATHMANDU, July 31: Pharmaceutical industry in the country is facing a serious problem due to fragile political situation in the country, especially the Tarai belt, where most of the pharmaceutical industries are based.



Shankar Ghimire, general secretary of Association of Pharmaceutical Producers of Nepal (APPON) - the umbrella association of pharmaceutical industries in the country, the disturbances in Tarai districts is increasing cost of operation. [break]



Twenty-eight of the 48 pharmaceutical companies in the country are based in different Tarai districts.



“Peace, stability and security is the first condition for every business and we are lacking the same,” Ghimire said, adding, “The never ending demands for employment by locals is the new problem that we are facing in recent days.”



He also said increasing load-shedding hours have increased their production cost by 15 percent. “We can´t include this cost in the price of medicine that we produce,” he said.



Nepali pharmaceuticals together enjoy 35 percent of total drugs market in the country estimated at around Rs 12 billion, according to APPON. Nepal imports about 65 percent of total medicines consumed in the country.



“The government should allow Nepali pharmaceutical companies to export their production like it has been allowing firms to import drugs from other countries,” Ghimire added.



Nepal is self-dependent for drugs for cough, vitamin, fever, abdominal health, pain killers, and general antibiotics, according to Ghimire. “Nepal should discourage imports of drugs in the category where we are self-dependent,” Ghimire added.



Most of the pharmaceutical companies have received World Health Organization (WHO)´s Good Manufacturing Practice (GMP).



He further asked the government to adopt a policy to purchase locally produced drugs instead of imported drugs that Nepal receives as aid from foreign countries.



“Since most of the local pharmaceutical companies are following WHO-GMP manufacturing procedures, the government should treat us on par with international pharmaceutical companies,” he added.



APPON has demanded the government to control import of medicines to boost domestic production.



Nepali pharmaceutical companies heavily depend on foreign countries for packaging material like aluminum foil.



Ghimire said the research and development (R&D) part of Nepali pharmaceutical companies is relatively weak. “Our R&D aspect should be strong for the development of new molecule of drugs," he added.



Another challenge for Nepali pharmaceutical industry is the persisting shortage of human resources. Though there are about a dozen colleges offering courses on pharmacy, freshers and professionals are going abroad because of low salary and perks, he added.



“Though there are many institutions offering courses related to pharmacy, we are failing to retain a majority of them in the industry,” Ghimire noted.

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