Russian firm to invest $80m in Pakistan to produce insulin with local partner
“The Drug Regulatory Authority of Pakistan with the approval of the federal government is pleased to fix maximum retail prices,” read the notification dated March 17.
KARACHI (Web Desk) Russian firm Zavod Medsintez LLC and its local importer Genetics Pharmaceuticals Private Limited plan to invest about $80 million in Pakistan’s pharmaceutical sector over the next six years to start producing insulin locally, according to a notification the Drug Regulatory Authority of Pakistan (DRAP) shared with Arab News on Tuesday.
The two companies will build an aseptic filling plant and an insulin manufacturing facility in the South Asian nation in two stages which, DRAP said, should be respectively completed by Dec. 2028 and Dec. 2031.
The plan surfaced as DRAP allowed the Russian manufacturer and its local partners to sell Rosinsulin R, Rosinsulin C and Rosinsulin M 30/70 insulin at maximum retail prices ranging from Rs1,399.33 ($5.01) per 10 milliliter vial to Rs3,235 ($11.6) per pack of five cartridges.
“The Drug Regulatory Authority of Pakistan with the approval of the federal government is pleased to fix maximum retail prices,” read the notification dated March 17.
The move would bring fresh investment to Pakistan where Prime Minister Shehbaz Sharif’s government is trying hard to woo foreign direct investment (FDI) in the country of more than 240 million people. FDI, however, has been moving south in recent years and has declined more than 33 percent to $1.19 billion this fiscal year during July-Feb. period, show State Bank of Pakistan data.
The DRAP made the notified prices conditional and said the price revision is granted on the explicit understanding that Zavod Medsintez and Genetics Pharmaceuticals would “immediately” start the establishment of the relevant manufacturing facility plant and commencement of local production of Active Pharmaceutical Ingredient (API) in two stages.
API is the essential, biologically active component within a drug responsible for producing the intended health effects, such as curing, treating, or preventing diseases.
“The first stage is the construction of an aseptic filling plant” at approximately $20 million, it said. The construction of the unit for bulk import and dedicated biological unit for aseptic filling of insulin and its derivatives should be completed by Dec. 31, 2028, the regulator said.
“The second stage is the construction of an API production plant (at) approximately $60 million,” it added.
The project will also include development and transfer of technology for the production of biotechnological products (insulins) from the API, i.e., from purification of API to packaging of its finished form, C Biotech, and should be completed by Dec. 31, 2031, the authority said, adding it would monitor progress and require the company to share stage-wise detailed timelines for investment.
“In case of non-compliance with the commitment of setting up manufacturing facility and manufacturing in Pakistan, the product registration shall be canceled,” the DRAP warned.
