“Given the knowledge that has been built up by Furquan and the resilience he has demonstrated, we think they can become one of the largest pharma movers in the country. It could even be taken beyond Pakistan, though of course Pakistan is a large enough market to build a very valuable business” Rabeel Warraich, founder at Sarmayacar Ventures health clinics, diagnostic laboratories – all of a sudden, about 21% of the population that previously could not afford your services now have the ability to afford them. That is an expansion of your market that is only likely to grow as the Sehat Insaf program expands nationwide. More people who can afford these services means more revenue for all sorts of is likely to go to hospitals, since the largest number of services covered are those provided by hospitals. The pharmaceutical sector is not a direct cover drugs through the insurance plans. But hospitals themselves are users of diagnostic laboratories, pharmaceutical drugs, etc., which implies that the market for even these segments of the healthcare sector are likely to grow. In addition, any money not spent on hospital expenses is money available for other healthcare expenses too, a point made by Khyber-Pakhindustry could be that despite the fact that the cards do not cover drugs purchased for out-patients, the mere fact that individuals would be able to access healthcare and free treatment, they would be more likely to use the money they saved on buying the drugs they need,” said the In short, this change is likely to be a positive for just about every single participant in the healthcare sector, and likely every segment of the pharmaceutical supply chain. The other change taking place, however, is likely to create some winners and losers out of the existing industry’s incumbents. And that is because it is driven by the rise of disruptive, tech-enabled companies. The rise of the online pharmacy K nowing as we do that pharmaceutical drugs account for approximately 62% of total healthcare spending in PBS data, if one had to go about tackling a major challenge in the healthcare sector, it would by the government’s tight regulations of pharmaout of the system would be – as with just about any retail-facing industry in Pakistan – would be to attack the supply chain. That is the theory behind the rise of online pharmacies like Dawaai, the venture-backed company founded by former derivatives trader Furquan Kidwai in 2014. Dawaai is seeking to disrupt the Pakistani pharmaceutical industry estimated to be worth Rs477 billion as of 2020, according to data compiled by global healthcare data analytics company IQVIA. Here is why Kidwai believes he has the ability to take market share, and it is not just because he is selling pharmaceutical products online. The entire pharmaceutical industry in Pakistan is regulated by the government under Drug Act, which also created the Drug Regulatory Authority of Pakistan (DRAP). DRAP has introduced pricing policies to ensure that pharmaceutical companies products while also not increasing the prices TEXTILES 16
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