Today, the pharmaceutical sector saw a rise in its stocks, and here’s why: <\/p>\n\n\n\n
On February 6th, 2024, the Interim Government initially approved the deregulation of non-essential drugs, which meant these drugs would no longer be subject to strict regulations outlined in the Drug Act of 1976. However, this decision faced a setback when a petition filed in the Lahore High Court led to a temporary halt, or stay order, against the deregulation.<\/p>\n\n\n\n
Under the Drug Policy of 2018, medicines are categorized into two types: essential and non-essential. Prices for these drugs are set by the government and are linked to the Consumer Price Index (CPI). Essential drugs can see a price increase of up to 7%, while non-essential drugs can increase by up to 10%. Last year, there was a one-time increase of 14% for essential drugs and 20% for non-essential drugs for a period of one year.<\/p>\n\n\n\n
The current pricing formula involves a calculation based on various factors such as the cost of active pharmaceutical ingredients (API), excipients, packaging materials, and mark-ups for both locally manufactured and imported drugs.<\/p>\n\n\n\n
However, as of April 2nd, 2024, the Lahore High Court lifted the stay order against deregulation, citing discussions with the elected Government. Yet, a final decision from the Government is still pending.<\/p>\n\n\n\n
If this deregulation is approved, it could greatly benefit the pharmaceutical sector.<\/strong> Companies would be able to increase prices of non-essential drugs and introduce new products, potentially leading to higher profits.<\/p>\n\n\n\n In particular, companies like AGP and SEARL (TSL Pharma Universe) stand to gain from this decision. AGP, with its mix of essential and non-essential drugs at 40% and 60% respectively, could be the primary beneficiary.<\/p>\n\n\n\n This development brings hope to the pharmaceutical industry, signalling potential growth and increased profitability in the future.<\/p>\n","protected":false},"excerpt":{"rendered":" Today, the pharmaceutical sector saw a rise in its stocks, and here’s why<\/p>\n","protected":false},"author":8,"featured_media":3709,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[159],"class_list":["post-3649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-psx-blog","tag-pharma"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/04\/Pharma-sector-news-1140x445.jpg",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/04\/Pharma-sector-news-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/04\/Pharma-sector-news-300x188.jpg",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/04\/Pharma-sector-news.jpg",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/3649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=3649"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/3649\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/3709"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=3649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=3649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=3649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}