Pharma giant presses on with investment despite general scepticism

Largest exporter, Getz Pharma setting up hi-tech biotechnology plant.


Farooq Baloch January 21, 2012

KARACHI:


Continuous investment in human resource development, technology and brand building has helped Getz Pharma to become Pakistan’s largest pharmaceutical exporter and the fifth-largest pharma company with 2011 revenues surpassing Rs10 billion.


The company is undergoing massive expansion, extending its production facility and office base and setting up a high-tech plant.

Ranked 195th by IMS – an international rating system – in 1995, the company has leapfrogged to number five among 600 pharmaceuticals operating in Pakistan, with an average annual growth of 53%. Pakistan’s pharma market is growing at 12% to 16%.

Headquartered in Dubai, Getz accounts for 30% of Pakistan’s medicines exports. Dispatching medicines to 20 countries, the company’s export revenues have reached Rs3.5 billion and are growing at 40%.

While investors are sceptical of betting their money on Pakistan, Getz has expanding its business base in the country. While a multinational pharma company (Roche) wound up its operations from Pakistan a few years ago, Getz invested Rs6 billion over the the last six years.

The company, which employs 2,200 people, has expanded its current building – which is near completion – by another 100,000 square feet. It also acquired 12 acres of land nearby to set up a high-tech plant, exclusively focusing on biotechnology.

“We have been investing and will continue to invest,” said Khalid Mahmood, Getz’s Managing Director and CEO, the brain behind this phenomenal growth and managing the business since its inception in 1995.

Getz is gambling on its money with a vision that it will pay off, Mahmood said.

Mahmood, who holds an industrial engineering degree from California State University and an MBA from Rutgers, New Jersey, returned to Pakistan after serving the American pharma industry for about 15 years.

“My comeback was mainly driven by the feeling that I wanted to die in Pakistan.” Another reason for his return was that he wanted to use his experience and expertise to explore opportunities in Pakistan.

When he returned, Mahmood found a huge gap between multinationals and local companies as the latter had poor standards. Now Getz, whose only production plant is in Karachi, has made a prominent place in the market that was once dominated by only multinationals.

Talking about his corporate strategy, Mahmood said they believe in hiring the best talent, retaining them and developing them. His company makes sure that it keeps the cutting edge technology and systems. The company focuses on brand building, without compromising the quality or standards.

Responding to a question about rising production costs, he said, “If you can produce efficiently and manage costs, opportunities are plenty.”

With a vision to become Pakistan’s third largest pharmaceutical firm, Getz has been focusing and investing heavily in biotechnology products since 2008.

Biotechnology products are the future of pharmaceuticals and have a lot of potential in export markets, said Mahmood Abdul Aziz, company’s Senior Manager Business Development.

The company launches 10 to 15 new products every year.

Besides challenges facing the pharma industry, Getz is also concerned about policies. Pakistan needs to be consistent in terms of its trade policy, economic policy and industrial policy, Mahmood said, adding the country’s tax-to-GDP ratio needs to be improved, so its infrastructure, which is one of the worst in the world.

The company, which already has a chemistry-based research facility in Ambernath, 65 km northeast of Mumbai, India believes it can increase exports manifold and even reach EU and the Americas through joint ventures with Indian counterparts.

Published in The Express Tribune, January 22nd, 2012. 

COMMENTS (6)

Zeeshan | 12 years ago | Reply

Great work! other generic companys should take leaf out Getz approach and invest in enhancing the technology. In addition to that it is great that Pakistans manufactured drugs are being exported in 20 countries. Hatts of to Mr. Kalid (CEO)

Zeeshan | 12 years ago | Reply

Great work, other generic compnay in Pakistan should take a leaf out of Getz and invest in prodcuing quality medicines and not crap.

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