[Ip-health] MSD winds up Pakistan operations

[Hafiz Aziz-ur- Rehman]

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[ Picked text/plain from multipart/alternative ]
MSD winds up Pakistan operations

By Afshan Subohi
http://www.dawn.com/2008/04/17/ebr3.htm

KARACHI, April 16: A leading multinational drug company has called it a day=
, decided to pack up and leave Pakistan. MSD (Merck Sharp & Dohme) has wrap=
ped up their business in Pakistan by selling the company to a local pharmac=
eutical OBS (Organon Bio Sciences).

No formal public announcement was received by Dawn from the company but our=
 sources in the pharmaceutical sector confirmed the news. Senior officials =
in the ministry of health were also not informed regarding the development =
that was conveyed to the employees at a meeting on Tuesday in a local hotel=
 in Karachi.

The details of terms and conditions of the transaction were not known as th=
e head of the company was not available for comments. A few disenchanted em=
ployees of the company called up Dawn to tell the tale of their woes on Tue=
sday.

=93For us it was a bolt from the blue. We had no clue about the decision. W=
e learnt about it in the meeting of all employees flown in from all station=
s. It was announced by a senior regional manager of the principal. We were =
told that from the next day we will be on the pay roll of OBS in place of M=
HD,=94 an employee told Dawn over phone, who did not want to disclose his i=
dentity.

=93I do not think they could have violated any rules in this regard. The mu=
ltinationals are very particular about following the laid down rules and pr=
ocedures,=94 a business adviser working for a group of foreign companies sa=
id commenting on the situation.

=93I see it as a purely economic decision. The company was in trouble. It w=
as not able to market successfully its new expensive products in Pakistan a=
s their generic versions were available cheap,=94 said Qaisar Waheed when c=
ontacted to know possible reasons for such an extreme decision.

A delegation of Pharma Bureau will meet the Federal Minister of Information=
 Sherry Rehman on Thursday, our sources in Islamabad confirmed. The officia=
ls of the ministry of health said that they hoped to learn about the deal t=
here.

The high ranking officials of the ministry told Dawn that it had not yet re=
ceived any information regarding any such development. Dr Fernaz Malik, Dru=
g Controller, told Dawn from Islamabad that the news had not surprised her =
as the share of multinational companies had been receding in Pakistan with =
local companies gaining strength. She said that from 80 per cent the share =
of multinationals has come down to 45 per cent in Pakistani market over the=
 last twenty years.

=93We have not ganged up against them, we have beaten them at their own gam=
e through open competition in the market,=94 said a managing director of a =
local booming drug company, who wished not to be named.

=93No, the decision has nothing to do with the issue of trust deficit of th=
e corporate sector on the capability of a democratic government. In multina=
tionals a decision of this nature involves a long-drawn process.=94

They are wrapping up because their profit margins and volumes plummeted due=
 to emergence of an efficient local industry in the country. The weak Pakis=
tani currency must have added to their woes,=94 said another expert on phar=
maceutical industry in Pakistan.

=93To me the exit will not stop here. There are many others contemplating o=
n the issue. From what I know Bristol Myer Squibb will also leave this year=
 as decision to this effect has already been taken by the principal.

There are 20 operations that they have decided to close, Pakistan is on the=
 list,=94 informed another expert.

=93We need not be alarmed about multinationals leaving Pakistan. See what i=
s happening in India. Indian drug sector has not only evicted multinational=
s from the market but they have actually made inroads in the US and Europea=
n markets on the strength of their competitiveness,=94 Dr Farnaz told Dawn =
from Islamabad over telephone.
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Hafiz Aziz ur Rehman
PhD. Candidate
ANU College of Law
The Australian National University,
Canberra ACT 0200
Phone: +61 (0) 401371601
azeez.rehman@gmail.com


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