Although the invisible enemy Covid-19 was well fought and contained to great extent by the global health communities. Huge applause to the efforts put by those Pharmaceuticals, which could develop emergency vaccines so quick, able to produce in large quantities and made available to most countries of the world for rapid vaccination. These great efforts have enabled us to curtail the worse ever situation the world has been facing for the past two years. Globally more than 475 Million were infected and reportedly 6.1 Million lost their lives due to this deadly menace of Covid-19. The rapid vaccination worldwide has brought some level of respite after the omicron variant. However, still, some threats could pose by a newer variant of this deadly virus. Amid the surge in global Covid-19 cases, Moderna, one of the leading vaccine developers manufacturers has cautioned about new variants that could predictably give some trouble in the future.
The efforts of large production of vaccines by many developed countries could achieve more than 11.2 billion vaccine doses distributed globally and out of 4.53 billion fully vaccinated and hence 58% of the global population is fully vaccinated now. During the pandemic we must appreciate all the Pharmaceutical companies who did their best to produce vaccines and essential drugs, maintain the supply chain of other drugs and stood as strong support in the health delivery system.
Now some relief from the Covid-19 pandemic has been achieved, but the socio-economic and several unseen impacts that are prevailing and revival could take longer to recuperate. The unexpected Russia Ukraine war is to cause unwanted and very difficult situation the world would never want to face. Due hostile situation in east Europe, economic sanction etc, the rampant price escalation of Petroleum products is worsening the current situation where the global economy is expected to face further set back.
The pharmaceutical companies cannot skip away from this situation. The cost of production is severely hit by the steep rise in the price of materials, thereby impeding to manufacture.
It is a very pathetic that despite knowing the genuine reason and the fact of production cost of Paracetamol tablet has shot up by three fold, the Government authorities were irresponsive and reluctant to revise and increase the price ceiling of Rs 1 which was fixed 14 years ago.
The supply chain of Pharmaceutical materials is adversely affected. The prices of Most of the APIs (Active Pharmaceutical Ingredients) and packaging materials have increased by 50% to 150%. China plays an important role in maintaining the supply chain. China is the world’s largest exporter of generic medicines and also the main source of (approximately 85%) essential intermediates and allied chemicals to global API (Active Pharmaceutical Ingredients) manufacturing companies. The present interruption of coal supply and pollution in China caused energy crises forcing insufficient production that has severely interrupted the smooth supply chain resulting into shortage and price escalation of most of the Raw Materials and allied chemicals worsening the condition.
Even, India is not fully self-sufficient in Pharmaceuticals though is the second-largest exporter of generic finished formulation. Yet India also depends on approximately 70% of the Intermediates chemicals on China; this scenario again hindered the smooth supply of requisite Intermediates and allied chemicals resulting in a shortage of the required inventory and production therefore disturbance in smooth supply.
The post-Covid situation has created an unpleasant environment for businesses in Nepal, as we are fully dependent on imports for all their API and packaging materials. We import 80% of Raw materials from India and the rest from China and other countries, so we are facing a difficult situation even after the pandemic subsides. The new fiscal policy of reduction in CCD ratio by Nepal Rastra Bank, followed by massive liquidity crises in the commercial banks compounded further worse to the trade and business. The national companies are in an agonizing phase due to the unfavorable and non-supporting policy of the nation.
Nepal has enforced the price ceiling of most of the Pharmaceutical products that indigenous companies manufacture. It is a very pathetic that despite knowing the genuine reason and the fact of production cost of Paracetamol tablet has shot up by three fold, the Government authorities were irresponsive and reluctant to revise and increase the price ceiling of Rs 1 which was fixed 14 years ago. On the contrary, our neighboring country India strive to support their domestic Industry by showing their quick response to the situation, as and when the price of material increases they relax their price ceiling and allow to increase the price of the medicines, and recently they have issued a notification to increase the price of all price capped medicines by 10.76%.
Strengthening Pharmaceutical Sustenance- the remedy towards Sustainability
Covid-19 crises have taught good lesson to every nation that self-sustenance is the only remedy to survive and sustain in such global calamities and boost up the national economy. In the modern era of interdependence it is not possible for any country to remain isolated from the other. Hence, International cooperation and coordination for harmonization is inevitable among countries. However, every country should certainly identify their key areas of strength for self-sustainability and go forward to achieve it. Nepal need to emphasize and focus on Strengthening Pharmaceutical Sustenance.
Need to promote National Industry :
As we all know that Industrial growth is the back bone for economic progress of any country.We observed during the calamities and crises, only national industry stood in the fore front to tackle and overcome the problems of shortages. Even during covid pandemic shortage of paracetamol and other essential medicines were made available by the national pharma industry. It is also a well known fact that every country would always promote their national industry and it is their prime responsibility to tackle the WTO and TRIPS provisions in the larger interest of the country. So for the economic stability and progress, sustained industrial growth is essential. So conducive industrial policy and strong political and beurocratic commitment to promote and support the national industry is the call of the hour.
Nepalese Pharmaceutical industry is well developed, sufficient investment has been done and huge installed capacity is already in place, thus the national industry are capable to produce more than 90% of the nation’s requirements. Now the need of the hour is how we can develop and support national industry thereby lead our Nepal to self sustenance in pharmaceuticals. Let us realize self-sustenance is our priority for every citizen, the government lets be fully committed in achieving it.
