As Pakistan faces a serious health crisis caused by major flooding, GSK is drawing back on the production of a common pain medicine in the country.
In a letter to Pakistan’s stock exchange, the pharma said that it has declared a “force majeure” — a common contractual clause that frees parties from liabilities under extraordinary circumstances — on the production of the pain medication Panadol in three forms, including tablets, extra tablets and children’s Panadol liquid range.
GSK’s letter explains that the price rapid increase of paracetamol, the raw ingredient for the drug, has been a “critical issue” in Pakistan. And while GSK claims in the letter that it received a “Consumer Price Inflation (CPI) adjustment” for this year from the Drug Regulatory Authority of Pakistan, “the same is not commensurate with the debilitating increase in the prices of the raw material of Paracetamol.”
The letter also said:
As a responsible corporate citizen, the Company holds the trust of its patients, consumers, healthcare practitioners, shareholders and all other stakeholders in the highest of regard. During the last twelve (12) months, the Company produced nearly 5,400 million tablets of Panadol 500mg and Panadol Extra to serve its customers, consumers and patients in need.
However, the company states that the manufacturing of Panadol on “negative margins “is unsustainable for GSK despite the efforts of negotiating with the government.
We urge the Federal Government to take urgent action...
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