Tuesday, 3 February 2015

I&M Exclusive: Interview with Senator Haseeb Khan, Chairman, Brookes Pharma Ltd


Elegant pharma industry veteran who is very young at heart.  He is widely admired as a brilliant and imaginative leader with an incredibly wide range of intellectual interests.  He is equally comfortable with the intricacies of Urdu poetry and Japanese Reiki as he is with the complexities of the pharma industry of Pakistan.  Senator Abdul Haseeb Khan has contributed to numerous projects, buildings, non-profits, and charitable causes throughout his life, by the Grace of Allah.  These include Abbasi Shaheed Hospital, Karachi University, Indus Hospital and Reiki Institute to name just a few.  Not content with his industrial and business success, Senator Haseeb Khan entered politics as Senator in 2009 for the national development of Pakistan.  In this role, he has the distinction of envisioning and spear-heading the Drug Regulation Act of Pakistan.

A visionary industrialist and patriotic citizen, Senator Abdul Hasseb Khan talks with I&M about the success of Brookes Pharma and the complexities of Pakistan’s pharma industry.
"Quality is our Priority" - Senator Abdul Haseeb Khan



I&M: Brookes Pharma Ltd. is an example of a Pakistani pharmaceutical company with high standards, international standing, and business success.  What is the secret of this success?

Senator Abdul Haseeb Khan:
The reason for this success is that quality is our priority.  We have steadily gained growth in domestic and international markets.  We encourage opportunities in a modest manner.  We began exports with one destination, which was Sri Lanka.  Now we export to 13 countries.  We are steadily increasing our export destinations by one or two each year.  To manufacture a quality medicine, there are defined expenses.  If you cut these expenses, it will be possible to reduce the price.  In this way, it might be possible to increase domestic sales, but not foreign sales.  Whichever company is exporting from Pakistan, it is a reliable company.  There are 25-30 Pakistani companies operating with international standards.  They are present in the international market.  Brookes is present in the international market and we compete on the basis of quality and price.  In Sri Lanka, one of my products is priced higher than an Indian product. Still, it is successful due to its quality.  In the international market, quality is primary and price is secondary.  In Pakistan, price seems to be primary.  For example, the Ministry of Health always demands that the price should be reduced to make it affordable.  In reality, their principle should be:  "Good quality at affordable price."


I&M:  What is the overall standard and image of the Pakistani pharmaceutical industry and which regions provide markets for Pakistani pharmaceutical products?

Senator Abdul Haseeb Khan:
There is no FDA certified Pakistani pharma company, although there are 4 FDA certified pharm companies in Bangladesh!  Therefore, France, Germany, UK, USA, Japan are not export destinations for pharma products from Pakistan.    If you leave these 5 countries, there is an open market in the world.  There are plentiful opportunities in African countries, Central Asian countries, Far East region, like Vietnam.

In medicine, there are WHO guidelines.  The companies that follow these rules and guidelines are quality manufacturers. Those companies which deviate from these rules and guidelines produce inferior and harmful drugs.  There are 650 companies in the Pakistani pharmaceutical industry.  From these, 100 companies have 95% of the market.  These 100 companies are quality manufacturers.

I&M:  The pharmaceutical industry is often divided into three groups:  Multinationals, Reputed Nationals, and Low-standard Nationals.  What is your opinion?

Senator Abdul Haseeb Khan:
We should divide the industry into two groups:  One group follows CGMP and the other does not.   So, the first group includes all 22 multinationals in Pakistan and 88 national companies which abide by CGMP.  The companies that are not following CGMP are 550 and they have 5% of the market.  These non-CGMP companies survive by producing low-quality drugs which are often delivered at low-price to low-standard government and private hospitals.   The patients die from these drugs.  Brooks Pharma does not quote to government hospitals.  For example, if government wants to purchase an injection for Rs. 1.50, but we pay Rs.3.50 for a clean and empty ampule, it is not possible for us to respond to the tender.  I wash the empty ampule with distilled water and the net cost to me Rs. 5.00. 

For many of the hospitals, the purchase principle is:  Lowest Price.  By comparison, I may say that national defence forces are a very big customer.  They have a very high standard, which includes a pre-inspection process, after which they short-list 10 companies.  When they float a tender, only those 10 companies may apply.   The competition is tough.  Sometimes one company wins and sometimes another.  Again I say, in the pharmaceutical sector, price and quality should both be priorities.  Many private hospitals also have a high-standard.


I&M:  How do you prevent or combat counterfeit drugs?

Senator Abdul Haseeb Khan:
We inform our distributor.  They reply that we should identify the perpetrator.  Unfortunately,  if the criminals are identified, they will still not be arrested due to corruption.  The business of fake and counterfeit drugs happens in wholesale market.  Our main precaution is that our drugs are sold directly to the chemist.  They are sold with a warranty.

I&M:  What is the degree of research and development in the pharmaceutical sector of Pakistan?

Senator Abdul Haseeb Khan:
Well, the commonly used term is “research and development”.    In fact, in Pakistan, research is not done.  Product development is done, in the sense that features like pricing and packaging are modified and adjusted.  The concept of research is missing both at private and government levels.   This is unfortunate, since today research and development are necessary to enter even small foreign markets. 

I&M:  What are some examples of unethical practices by some pharma companies to market or promote their products?

Senator Abdul Haseeb Khan:
Many pharma concerns offer informal transactions in cash or kind to enhance sales of their particular product.  Many doctors are provided free leisure trips to foreign countries.  Some of them get such expensive ‘gifts’ like power generators, UPS, computers for their kids, laptops and trendy mobile phones for their own use.  Pharma companies are offering huge discounts to chemists to replace the doctor prescriptions  .  Some pharma companies are making look-alike packaging of fast-running brands to manipulate the patients.  Medicine distributors easily find room to manipulate the prices of medicines and use palm-greasing and other unprofessional methods to boost sales.   All these are examples of highly unethical practices that should be identified, condemned and prevented.


I&M:  As a Senator, you were in the forefront of the Drug Regulation Act of Pakistan.  What was the motivation?

Senator Abdul Haseeb Khan:
I created it in response to the challenge posed by the devolution of powers to provincial authorities.  After health and education were devolved to the provinces, there was a need for a central body.  Health and education are international subjects.  Who will WHO talk with?  For two years, Cabinet Division was looking after national health and the pharmaceutical sector.  I said enough is enough.  Things have to change. 

I&M:  In your efforts to formulate the Drug Regulation Act of Pakistan, what support and encouragement did you get?

Senator Abdul Haseeb Khan:
Well, there was no support and I faced much opposition from many sides including PPMA, Pharma Bureau, government, and bureaucracy.  I created it with the benefit of national and international advisors, like Canadian Ministry of Health, and I must say with the help of God Almighty.   DRAP has been functioning well for 3 years now. 


I&M:  We attended the inauguration of a pharmacy education building on the campus of Karachi University some years ago.  It was inaugurated by Lt General Moinuddin Haider as the Chief Guest.  It was your gift to the pharmacy department of Karachi University in an effort to improve human resource for the pharma industry.   What is the progress?

Senator Abdul Haseeb Khan:
The Karachi University pharmacy department was producing pharmacists.   I said it is not enough.  There is a need for MPhil and PhD graduates.    My expectation was that 15-20 students should graduate with PhD each year.  They should enter the industry here or go overseas.  That is not the result as yet, so I would say the result is not up to my expectations as yet.

I&M:  A major disagreement between the regulators and industry lies in the subject of drug prices.  What is your perspective on this controversial subject?

Senator Abdul Haseeb Khan:
Pricing has not been increased in 12 years.  However, some people go to the government and gain price increase every two or three months for their products.  This is well-known and not a secret.    It has been named hardship cases.  Sometimes it is justified.  When there no policy, then these things happen, since the manufacturers bear increase in price of raw materials.  How can they bring the product to market?  Inflation of 6 – 8% should be factored by the government.  After all, inflation impacts the price of items like cigarettes, petrol, cement, food etc.    I think that as a result of the current government pricing policy, low quality production is encouraged, unfortunately.

I&M:  What are the essential features of a good National Health Policy?

Senator Abdul Haseeb Khan:
National health policy is built on many building blocks.   You have to consider your national lifestyle, regional lifestyles and illnesses.  It needs to be population based.  There are different diseases and ailments in Thar, FATA, Punjab, Sindh, for example.  You need to make basic health units.  Presently, we have a administrative policy but not a health policy.  Presently, a building is made in a rural area, but there is no doctor or medication.   If the patient is not able to reach the BHU, then it is not a good health policy. 

If a country wants to investigate the health policy of another country, the process is simple.  They will need to only send one person to each province.   That is all.   If he will note the satisfactory functioning of BHU, he leaves with a good report.  If the basic health unit is running well, then the National Health Policy is correct.  How can it be that BHU is seen running well and the policy structure is not correct?  So, that is all that has to be seen.  The responsibility for BHU is with province.  Has the Chief Minister visited BHUs in Sindh?  In places like Mirpur Chachro, Sujawal, Badin?   

As I see it, the government does not announce a National Health Policy, to avoid the obligation of providing the basic structure.

I&M:  We admire you as a successful industrialist and patriotic citizen with vast experience and national contribution.  In your opinion, what is needed to direct Pakistan toward success and development?

Senator Abdul Haseeb Khan:

We must establish rule of law for everyone.  In Islamic culture, status and position has no bearing in the eyes of the law.  In Pakistan, we need to punish violators of law, according to law.  It is not necessary for governments to claim they have restored rule of law.  When the rule of law of established, then you will see law being upheld.  It will be visible.

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