Will Pakistan again face shortage of Panadol after official statement by GSK?

KARACHI: The renowned pharmaceutical company GlaxoSmithKline Pakistan has temporarily ceased production of Panadol, also known as acetaminophen. 

According to the corporation, its manufacturing operations are no longer viable under negative margins. GSK announced in a filing to the Pakistan Stock Exchange that due to the current circumstances, the company has no choice but to declare "forced Majeure," a contractual clause that reduces the liability of all parties in a particular circumstance, in this case, GSK's liability, in the production of Panadol. This comprises Panadol, Panadol Extra, and the Panadol product line for children.

Prior to this, there were several concerns that the market lacked Paracetamol. As a result, the pharmaceutical company asserts that GSK has no choice but to cease manufacturing despite multiple efforts to establish a mutual understanding of the topic.

Sunny Kumar, deputy head of research at GSK, stated that neither the government nor the pharmaceutical company was at fault. As Paracetamol, the imported raw ingredient needed to create Panadol grows more expensive, the country's current economic situation has increased production expenses. Under the current circumstances, the government also desires to give price relief for medicines. Consequently, no institution can be held accountable.

Under such unfavorable conditions, GSK asserts that the only remedy is to raise drug prices to a level commensurate with production expenses.