April - June 2014

099 PHARMA PRO & PACK l APR - JUN 2014

PHARMA MARKETS Nepal pharma industry

gets ready to eye

the world

Mr. Deepak Prasad Dahal
General Secretary
Association of Pharmaceutical Producers of Nepal (APPON)

PHARMA PRO & PACK l APR - JUN 2014 APPON (Association of Pharmaceutical Producers of Nepal) was class but these machines are prohibitively expensive.
established in the year 1990 by pharmaceutical entrepreneurs with an
aim to facilitate, enhance and improve the service of the pharmaceutical Nepal's pharma industry has gradually started to develop a vision
companies in coordination with di erent government bodies, medical wherein there are possibilities and chances of tie-ups and technology
fraternity and pharmaceutical business houses. Today, it has 45 transfers. This would go a long way in boosting the already bright future
pharmaceutical companies as its members, who command 40% of the of Nepal's pharmaceutical industry. Joint ventures and tie-ups with multi
Nepalese pharmaceutical market share. Thirty four of these companies nationals would result in streamlining of processes, introduction to
are certi ed with WHO-GMP. modern and latest technologies and production processes. This is a
possibility. But we also have to remember that Nepal's economy is import
From the day of its establishment, APPON is driving towards its cherished based economy and there are laws and acts governing the pharma
destination to produce safe, e cacious and economical products with industry. These laws and acts were enacted in 1978 and are still in force.
high quality to serve the health sector of Nepal. To promote the Nepalese But at that time the situation was totally di erent then what it is today. In
pharmaceutical companies in the global market it is also extending its the seventies, the government thought of giving priority to import of
fullest support for export. APPON is also helping the pharmaceutical medicines and not to manufacturing. But international tie-ups and joint
industry in getting support on the technical and technological ventures would pave open the way for new opportunities in
advancement fronts which ultimately will push the development of manufacturing of formulations. Also such ventures would be of great
health sector of Nepal. help to the Nepalese industry in increasing the overall strength of the
companies alongwith increase in volumes and production capacity.
The 45 pharma companies are producing a range of products both for Issues like quality control will also get a major boost.
human beings as well as veterinary products. Already Nepal is self
su cient in 77 di erent products. Nepal pharma companies are Nepal is a part of LDC (Least Developed Countries) as per the World Trade
manufacturing mostly oral dosage form like tablets, capsules, powder, Organisation's Doha Declaration of 2002. All LDCs are allowed to
oral liquids and suspensions. manufacture all the patented drugs till 2016. Bangladesh is the only LDC
that has taken the fullest advantage of the LDC status. Many
The Nepalese pharma industry is sensitive regarding the quality of its multinational companies have set up plants in Bangladesh and
products and that is the reason why almost all the manufacturing handsome income generated from exports ultimately is the foreign
facilities have their own laboratories having the latest equipments and exchange revenue for the state exchequer.
gadgets. I am indeed proud and happy to say that our products have the
inherent strength and capability to meet global levels. It is here that I underline the need for more government support and
encouragement to Nepal's pharma industry. Pharma clusters like the
Recently Nepal has started exports to some African countries and is now clusters promoted in India could be set up. 50%, 80% or 100% export
trying for exports to other countries also. But India continues to remain oriented units could also be set up. We have been representing this to the
the focus country with most of the Nepalese exports coming to India. Nepalese government for quite some time. This again would go a long
Nepal's pharma industry has a rich and bene cial association with India. way in helping Nepal's pharma sector. Take the examples of P zer and
Nearly 99% of the pharma machinery used by Nepal's pharma industry is SKF. They may be in Switzerland. But they have plants in Bangladesh
sourced from India. Secondly 50% of the raw material used by Nepal's manufacturing patented drugs. Even Indian company like Sun
pharma industry also comes from India and 90% of the packaging Pharmaceuticals has a company by the name of Sun Pharmaceuticals
material used by Nepal is supplied by Indian suppliers. Bangladesh Ltd which manufactures in Bangladesh and exports across
the world. All stake holders including the Bangladesh government have a
Nepal's pharma industry patronises the Indian pharma machinery win-win situation as the revenue ows in dollars.
manufacturers for many reasons. The rst and foremost reason is that we
get very good support from Indian machinery manufacturers. From APPON has represented this to the government. But the government has
technical support to after sales service Indian machinery manufacturers put some conditions. The government has said Nepal's pharma industry
are always there to listen to us and bring about a solution to our problems. can bring partners from India or any other part of the world. But 80% of
Recently some of our friends brought machinery from China. The Chinese the produce will have to be exported. Also APPON has chalked out a 15-
machinery is also good but unfortunately there is no support and neither year perspective plan to guide the pharma industry in the coming days.
there is any after sales service. We are also working towards making our government understand the
bene ts of opting for enhanced and latest technology and how Nepal
Also Indian machinery is cost e ective and we can have Indian machinery could bene t from its LCD status.
in every sector and segment. So we are using 99% of our machinery
requirements are met by Indian machinery manufacturers. This is the Our new health minister is a very energetic and supportive person. And
reasons why we don't want to bring machinery from China, Korea, Taiwan he himself asked if we come up with a good plan he will go all out to
or Europe. One should also remember that Indian machines are value for support us. APPON believes that the future holds good and I am also sure
money machines. The European and American machines may be top we will be able to deliver the goods.

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