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.
"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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