- Company says resumed production in the larger interest of consumers and patients in Pakistan
GlaxoSmithKline Consumer Healthcare Pakistan Limited (GSKCH) has lifted the event of 'force majeure' declared last month for its Panadol range of products, it announced in a notice sent to the Pakistan Stock Exchange (PSX) on Friday.
The development comes after GSKCH, member of the Haleon Group, on October 21, 2022 declared force majeure regarding the production of Panadol and Panadol Extra tablets as well as the Panadol liquid range for children.
Force majeure is a clause that is included in contracts to remove liability for unforeseeable and unavoidable catastrophes that interrupt the expected course of events and prevent participants from fulfilling obligations.
In the days that followed, the pharmaceutical industry came to an agreement with the government, in talks led by Federal Minister for Finance and Revenue Ishaq Dar, over revised prices of paracetamol products, and initiated production of the medicine.
“We appreciate the efforts of the federal government to revise the prices of Panadol Tablets, Panadol Extra Tablets and Children’s Panadol Liquid Range, which will help the company to continue to produce everyday healthcare products without gross losses,” said GSKCH on Friday.
While pharmas had demanded an increase in the price of plain paracetamol from Rs1.87 to Rs2.67, the government allowed a rise to Rs2.35. Meanwhile, the price of a tablet of Paracetamol Extra was Rs2.19 and pharmaceuticals had demanded to increase it by Rs3.32. The government allowed for the price to go up to Rs2.75 for a tablet.
The price of a bottle of paracetamol liquid has been increased from Rs104.8 to Rs117.6.
GSKCH on Friday said that although the price revisions granted do not fully mirror the sharp increase in the raw material prices of paracetamol, “we have resumed production in the larger interest of consumers and patients in Pakistan”.
“We look forward to further discussions and engagement with the government, in due course, to discuss our long-term strategy to provide better everyday health with humanity, and based on trusted science.
"The company resumed the full capacity manufacturing of Panadol Tablets, Panadol Extra Tablets and Children’s Panadol Liquid Range once an agreement was reached with the key Federal Government’s representatives," it added.