Abbott Laboratories (Pakistan) Limited seeks to become a trusted partner by offering high-quality, affordable branded generic pharmaceuticals to a wider range of people in Pakistan, and the management continuously improves their medicines to make them better, easier to administer and faster to act. Since 1948, Abbott has been dedicated to assisting people in Pakistan live healthier lives.
The financial experts of the company stated in the report of the company that during the six months’ period closed June 30, 2018, the sales for the half year raised by 14 percent over the corresponding period last year. Pharmaceutical sales grew by 16 percent chiefly attributable to sustained performance of organized brands. Nutritional sales grew by 12 percent chiefly driven by rise in sales for child nutrition supplements. It is also recorded that the gross profit margin of Abbott Pakistan over this period was 35 percent, recording a rise of 6 percent over the corresponding period last year. The absolute growth was Rs. 272 million. Gross profit margin for the pharmaceutical business fell to 36 percent from 39 percent chiefly on account of devaluation of Pakistani rupee and increase in raw material prices. Similarly, gross profit margin for nutritional also fell to 31 percent from 32 percent whereas others declined to 32 percent from 37 percent which is also attributed to inflation and devaluation of Pakistani rupee.
The financial experts of the company also mentioned that selling and distribution expenses were raised by 29 percent against the corresponding period last year. The management also mentioned in the financial statement that Abbott Pakistan continues to face challenges of rapid escalation in costs because of inflation rate in the country also devaluation of the Pakistani Rupee. Furthermore, the rise was chiefly because of higher expenditure on advertisement and sales promotion. Other charges explained a rise of 20 percent mostly on account of exchange losses because of devaluation of Pakistani rupee. Overall, the profit after tax fell by 25 percent because of the causes discussed above.
Furthermore Pakistani experts mentioned that the pharma sector has huge potential and needs harvesting for the advantage of Pakistan through earning money abroad through enhanced exports of pharmaceutical and alternative medicine. Pharma sector could enlarge its volume of exports as the 6th largest sector sharing to the overall exports of Pakistan. It is also urged that pharma export sector is presently earning $230 million and has a potential to enlarge up to $2 billion. The Drug Regulatory Authority of Pakistan (DRAP) has already taken the measure to facilitate local manufacturers who are exporting to other states. This facilitation includes fast track registration, incentive of registration of one molecule against a $100,000 of export in a fiscal year, guidance and facilitation in issuance of regulatory documentation for the purpose of exports. Moreover, DRAP is harmonizing its regulatory function in line with international best practices for recognition and acceptance of local pharmaceutical sector abroad. It can be boosted to attain desired targets by engaging Pakistani missions abroad who will facilitate those Pakistani pharma exporters in ease of doing business abroad after completing the regulatory requirements of importing country.
Different sources also urged that despite various issues faced by the pharmaceutical sector, Punjab province shares 60 percent share In the country. A recent report has also confirmed years of allegations by local manufacturers of medicines that multinationals not only sell drugs at exorbitant rates but also avoid taxes and are involved in the flight of money in the country and other countries. In the seven developing states like Pakistan, India, Chile, Colombia, Ecuador, Peru and Thailand, where statistics was obtainable, the firms appeared to avoid an estimated $112 million in taxes yearly.