GlaxoSmithKline (GSK) Consumer Healthcare Pakistan on Friday announced that it is stopping the production of Panadol Tablets, Panadol Extra Tablets and Children’s Panadol Liquid Range amid financial losses.
“We are incurring heavy financial losses on the production of the entire Panadol range due to an increase in the price of their raw ingredients and in the absence of due approval by the federal government on the recommendation of Drug Pricing Committee of Drug Regulatory Committee of Pakistan. Due to these challenges, manufacturing of Panadol range on negative margins is unsustainable and despite exhaustive efforts of the company to mitigate the issue through dialogue, the situation is now beyond our control, compelling us to declare force majeure,” Chief Executive Officer (CEO) of GSK Consumer Healthcare Pakistan, Farhan Haroon, said in a letter to PM’s Principal Secretary Syed Tauqir Shah.
GlaxoSmithKline informed investors on Friday that it had a net loss of Rs345.2 million for the quarter ending in September, as opposed to a net profit of Rs363.9m for the same time the previous year.
Panadol is among the highest selling medicine brands in the country, with demand for the drug being the highest in Punjab. The medicine comes in formulations meant for infants, children and adults. A sister brand named Panadol Extend is also part of the company’s products.