GSK shuts down Panadol production
GSK, Pakistan’s largest pharmaceutical declared force majeure, a French term describing multiple uncontrollable events regarding Panadol production. Panadol is Pakistan’s over-the-counter drug, preferred for fever.
During the filing into PSE, the Pakistan unit of British Multinational pharmaceuticals announced that thay have suspended the production of Panadol including Panadol tablets, Panadol extra tablets, and children’s Panadol liquid range, maintaining it has become unsustainable to produce the cheap drug citing huge loses.
The development comes amid a severe shortage of Panadol in markets across Pakistan, which has worsened amid a dengue epidemic following deadly floods.
The pharmaceutical giant, which produced about 450 million tablets a month earlier, reduced production, declaring that it was not profitable, but now, in a legal filing on the PSX, the company continues to say it’s “forced to declare force majeure.”
It also said that the authorities there did not give permission to increase despite many complaints due to financial problems.
The company said that despite efforts to reduce the issue through negotiations, the situation is beyond us now, adding that the federal government has been advised to hold prices due to the extraordinary and urgent increase and equipment costs. It further called on the authorities to act quickly to bring down the price of Panadol due to the increase in the price of the affected ingredient.
One of the directors of the company also recalled that the big pharmaceutical company produced almost 5,400 tablets of Panadol 500mg and Panadol Extra last year despite the loss.
Last month it was reported that Prime Minister Shehbaz Sharif had ordered subsidies to be given to the manufacturers of Panadol and Paracetamol to make these drugs affordable for the public after the outbreak of severe flood.
GSK shuts down Panadol production!