Karachi: The renowned pharmaceutical, GlaxoSmithKline Pakistan has temporarily shut down the production of acetaminophen, famously known as Panadol. The company says that its manufacturing is no longer sustainable under negative margins.
During a filing to the Pakistan Stock Exchange, GSK announced that due to the current conditions, the company has no choice but to declare “forced majeure” a contractual condition that diminishes the liability of all parties in a certain situation, in this case, the liability of GSK, in the production of Panadol. This includes Panadol, Panadol Extra and the children Panadol range.
Previously, there had been many complaints that Paracetamol was short in the market. The pharmaceutical claims that regardless of numerous efforts to reach mutual understanding in the matter, GSK has no other choice but to, suspend production.
Deputy Head of Research Sunny Kumar at GSK said that neither the government nor the pharmaceutical are at fault in the matter. The current economic condition of the country has raised production costs as Paracetamol, the imported raw material used to manufacture Panadol, becomes more expensive. The government as well, under current conditions wishes to provide relief in medicine prices. Therefore, no particular institution can be held accountable.
Under such unfortunate circumstances, GSK claims that the only solution is to increase drug prices to a level that justifies the production costs.