In pharma JV, Pakistan to import Russian insulin
Pakistan is set to import insulin from Russia with the help of joint ventures between pharmaceutical companies of the two countries.
In that regard, a high-level meeting was held under the chairmanship of Special Assistant to Prime Minister (SAPM) on Industries Haroon Akhtar Khan. Russian government representative Denis Nazarov, senior officials of the Ministry of Industries and Production, Ministry of National Health Services and Drug Regulatory Authority of Pakistan (DRAP) were present in the huddle.
Discussions focused on the purchase of insulin from Russia, progress on pharmaceutical joint ventures and the development of protocols for policy implementation. It was noted that DRAP had earlier granted permission to Genetics Pharmaceuticals, Lahore, for the import of insulin from Russian firm Zavod Medisintez.
Haroon Akhtar emphasised that the establishment of a pharmaceutical joint venture between Pakistan and Russia marks a significant milestone in strengthening bilateral relations. He noted that Pakistan is a major consumer of insulin and its regular supply from Russia could greatly benefit diabetic patients across the country.
He stated that in line with Prime Minister Shehbaz Sharif's vision, efforts are underway to initiate local manufacturing of insulin. In this connection, a joint protocol between local manufacturers and Russian companies is expected to be finalised soon. He directed all stakeholders to develop a comprehensive proposal.
Sources revealed that a registration letter for the import of insulin from Zavod Medisintez was issued by DRAP on May 5, 2025 in favour of Genetics Pharmaceuticals. Subsequently, the company applied for an increase in the maximum retail price (MRP) on the basis of a rise in the Consumer Price Index (CPI), which is allowed under the Drug Pricing Policy, 2018. A revised MRP letter was issued to Genetics Pharmaceuticals on June 16, 2025.
The manufacturer is demanding the MRP quoted by the originator brand of insulin, Eli Lilly. However, the importer has not so far submitted any application and justification for the increase in MRP.
It is relevant to mention that leading local manufacturers, Getz Pharma and BF Bio Sciences, are selling locally manufactured insulin at MRPs equal to or lower than the MRP permitted for insulin import from Russia. If the MRP of Russian-manufactured insulin is increased, it will be higher compared to that of another European company, Novo Nordisk Pharma.
The importer has two options to apply for increase in the MRP of insulin imported from Zavod Medisintez: an application may be submitted under the hardship category as per paragraph 9 of the Drug Pricing Policy, 2018 and the importer should submit evidence of import in commercial quantity from Russia.
The MRP will be calculated on the basis of import price of the vaccine based on the value determined by Pakistan Customs on goods declaration under the Customs Act, 1969. The MRP will be based on the following formula: trade price = landed cost + 40% mark-up.
The landed cost includes the import price converted into Pakistani rupees, customs duty, import levies and expenses. The MRP will be calculated by grossing up the trade price to provide for 15% retail discount.
Hardship applications will be considered by the drug pricing committee and the MRP determined on the basis of above formula will be placed before the DRAP policy board. After endorsement by the board, the recommended MRP will be considered by a cabinet committee and its recommendation will be placed before the cabinet for approval.
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