Pakistan’s Pharma Retail Market Hits Rs. 1.05 Trillion Amid Price-Driven Growth
Pakistan’s pharmaceutical retail market recorded a significant milestone, reaching Rs. 1.049 trillion in sales for the 12 months ending March 2025, marking a 20.62% increase in local currency and a 23.14% rise in US dollar terms, according to IQVIA Pakistan’s Q1 2025 Market Access Tracker.
Read More: Medicine Prices Increased In Pakistan
Price Hikes Drive Majority of Growth
The data reveals that 68.96% of the market’s growth was fueled by price increases, rather than increased demand. Despite the impressive revenue rise, unit sales grew by only 3.63%, reaching 3.77 billion units year-on-year. Over the past five years, volume growth has been limited to 5.49%, raising serious concerns over affordability and accessibility for consumers.
In US dollar terms, the industry’s compound annual growth rate (CAGR) over the last four years stood at 4.05%, compared to 19.09% in rupees.
National Firms Outperform in Volume, MNCs Lead in Value
Local pharmaceutical companies sold 2.91 billion units, showing a 4.98% increase in volume. In contrast, multinational corporations (MNCs) saw a 0.72% decline in unit sales but experienced a 19.04% growth in sales value, signaling a stronger focus on high-value products.
October 2024 marked the highest-grossing month, with total industry sales hitting Rs. 96.48 billion. National firms contributed Rs. 75.39 billion, while MNCs accounted for Rs. 21.09 billion.
Market Consolidation and Top Performers
A total of 87 companies surpassed Rs. 1 billion in annual sales, representing a dominant 96.52% market share. The top 20 firms collectively generated Rs. 450 billion, accounting for 42.92% of total sales with a 23.28% annual growth.
- Companies earning between Rs. 10 billion and Rs. 40 billion contributed Rs. 348 billion (33.18% market share, 15.7% growth).
- Firms with revenues above Rs. 5 billion added Rs. 124 billion, led by strong domestic performers like Hilton, OBS, High-Q, PharmEvo, and Ferozsons.
MNCs Shine in Growth, Locals Dominate Innovation
Abbott, GSK, Haleon, Novartis, and Novo Nordisk led among multinationals, with 7 out of the top 10 companies posting double-digit growth.
Innovation was robust with 636 new product launches—a staggering 623 by local firms and just 13 by MNCs—generating Rs. 7.15 billion in fresh revenue.
